GreenWorks ESG

With all the political rhetoric on ESG/Climate, we wanted to better understand what institutional investors are focused on. Today, we look at the Mackenzie Financial Corporation (“Mackenzie Investments” or “Mackenzie”) response to the CSSB proposed CSDS 1 & 2 frameworks. Mackenzie Investments is a leading Canadian global asset manager, headquartered in Toronto with offices across Canada and in Boston, Dublin, Beijing, and Hong Kong. Total assets under management were $195.7 billion as of December 31, 2023. Mackenzie supports the CSSB’s mission to produce standards in line with the global baseline of sustainability-related financial disclosures, to support informed capital allocation and believes that the CSDS S1 and S2 are broadly aligned with our perspective on sustainability-related disclosures. ▪️ Mackenzie supports the suggested CSSB’s proposed Criteria for Modification. ▪️ Mackenzie believes in the implementation of CSDS S1 alongside CSDS S2. ▪️ Mackenzie is supportive of the transition relief to provide adequate time for effective implementation by regulators. ▪️ Mackenzie supports the issuance of the Financial Statements and the Sustainability-Related Financial Disclosures in the same period. ▪️ Mackenzie supports the transition relief to allow for effective implementation by regulators. For large publicly listed companies, our expectation is they should already be disclosing, especially considering those firms generally have high exposure to climate risk or emissions. ▪️ Mackenzie request’s additional guidance on the following areas: preferred methodologies (specifically related to scenario analysis), further clarity on financial materiality, and expectations from transition plans to support strategy development and reporting progress. We request that guidance be industry specific, so investors can effectively compare companies. ▪️ Mackenzie’s view is that two years is sufficient time for companies to build the capability to disclose Scope 3 emissions. In conclusion: “Consistent, comparable, and audited sustainability disclosures are critical for our industry to accurately assess and manage material risks and opportunities, and to report relevant outcomes back to clients and shareholders. We value all material sustainability disclosures, including climate-related disclosures due to the systemic nature of the risk, especially as companies transition to low-carbon economy. Consistent climate disclosures allow us to meet our climate commitments as a signatory to the Net Zero Asset Managers initiative where we have an obligation to report Scope 1, 2, and 3 emissions across our portfolios. Therefore, we are supportive of the alignment to the ISSB’s efforts to enable globally consistent disclosure of climate-related financial information.” Find the full letter here: https://lnkd.in/gzb2x_PY Tomorrow we review Norges Bank Investment Management (NBIM) letter to the CSSB.

With so much attention on the shift from voluntary to mandatory reporting, we’d like to highlight what investors are focused on. Today we look at The Capital Group’s (CG) CSSB comments. Capital Group (CG) is a global investment management firm founded in 1931 and headquartered in the US, with regulated subsidiaries in the major global financial centers. CG ranks among the world’s oldest and largest investment management organizations, with over US$2.7 trillion in long-term equity and fixed-income assets under management globally for institutions and individuals. They encourage the CSSB to fully adopt all published ISSB standards (currently S1 and S2). Below, they share four reasons why they feel this would be valuable for both companies and investors. 1️⃣ The “global baseline” reduces the reporting burden on companies. 2️⃣ Investment managers require material sustainability-related information in order to make investment decisions that are in the best interest of their clients. 3️⃣ ISSB Standards have been designed to meet the needs of global investors. 4️⃣ The “global baseline” enables comparability for investors. As markets around the world consult on and adopt the ISSB standards, CG encourages jurisdictions to adhere to a consistent global baseline, and to act in a timely manner. Full CSSB response letter: https://lnkd.in/gzb2x_PY Tomorrow we review Mackenzie Investments.

With so much attention on the shift from voluntary to mandatory reporting, we’d like to highlight what investors are focused on. Today we look at Canada Pension Plan (CPP) CSSB comments. CPP manages C$632.3 billion in net assets, with almost $76 billion invested in Canada. They commend the CSSB on its proposed standards that are in broad alignment with the International Sustainability Standards Boards’ (ISSB) Sustainability Disclosure Standards. They also believe that this will support investors to make more informed investment decisions, and will reduce the reporting burden for Canadian entities that operate or raise capital in multiple jurisdictions. The ISSB Standards also bring a significant advantage to SMEs through the principle of proportionality embedded in IFRS S1, allowing them to report within their capabilities while striving for incremental enhancements over time. We also note that, while this reporting may represent a considerable lift for some Canadian entities today, significant investment is being made by the IFRS to support capacity building. We recognize that the proposed CSSB Standards would become voluntary for annual reporting periods beginning on or after January 1, 2025, until the Canadian Securities Administrator (CSA) incorporates the CSSB Standards into a CSA rule. We view domestic regulators as well placed to consider when adoption should become mandatory and that the CSSB should remain focused on defining the standard to meet reporting needs of issuers and investors. Effective date: We support the timeline extension for CSDS 1 and CSDS 2 compliance to January 1, 2025. Non-climate disclosures transition relief: We are not supportive of the transition relief allowing companies two years during which an entity is permitted to disclose information on only climate-related risks and opportunities. Scope 3 GHG emissions transition relief: We are open to this relief, in principle, as it provides reporting entities more time to prepare. CSDS 1: Timing of reporting. They are open to the relief regarding alignment of reporting of sustainability-related impacts with financial ones. CSDS 2: Climate resilience (scenario analysis). They recognize the limitations of scenario analysis in comprehensively assessing climate resilience due to data availability and market sophistication, among other things. They nevertheless do not support the transition relief on scenario analysis. Criteria for Modification Framework: We support the ISSB‘s “building blocks” approach, which allows for additions to the global baseline, but not modifications or deletions. Therefore, we recommend that the CSSB only consider additions to the ISSB baseline when unique circumstances arise in the Canadian public interest, such as addressing the rights of Indigenous Peoples. The full letter is found in this link: https://lnkd.in/gzb2x_PY Tomorrow we review the CSSB comments from Capital Group.

With so much attention on the shift from voluntary to mandatory reporting, we’d like to highlight what investors are focused on. Today we look at BCI’s CSSB comments. British Columbia Investment Management Corporation (BCI) is an investment manager with over CAD $233 billion in assets under management, and one of the largest institutional investors in Canada. Their investment activities help finance the pensions of approximately 725,000 people in the province of British Columbia. BCI strongly believes in the benefit of globally consistent, comparable, and reliable sustainability-related financial disclosures. They believe this information is crucial to support investment decision making and allows investors to confidently assess and manage associated risk exposure. BCI believes the best way to achieve the desired global baseline across jurisdictions is through full alignment with the ISSB’s standards. These standards, IFRS S1 and S2 specifically, build on existing and broadly accepted frameworks and standards, such as the Task Force for Climate-Related Financial Disclosures (TCFD) recommendations and the SASB industry-specific standards. They also included their thoughts on transition reliefs:   BCI believes the additional time afforded to Canadian issuers (January 1, 2025, vs. January 1, 2024) for CSDS 1 and CSDS 2 compliance is reasonable. Non-Climate Disclosure Relief: BCI does not believe that an additional two years is needed to allow Canadian issuers to prepare to disclose material sustainability related information. Scope 3 GHG Emissions Relief: BCI is open to this relief, in principle, to give issuers additional time to prepare and to give securities regulators an opportunity to determine the most appropriate safe harbour provisions for this data. BCI recognizes the complexity and many assumptions required to report this data. However, we agree with the statements made by the CSSB about the significance of Scope 3 emissions in most entities total GHG emissions inventory and how critical this information is for understanding an entities exposure to climate-related risks and opportunities in the value chain. By taking steps to track, disclose and ultimately reduce Scope 3 emissions, Canadian issuers can provide evidence of transition risk management to investors. It can also help companies prioritize emission reduction strategies, encourage product innovation, and identify leaders and laggards in their value chain. The full letter is found in this link: https://lnkd.in/gzb2x_PY Tomorrow we review the CSSB comments from (CPP) Canada Pension Plan Investment Board

With so much attention on the shift from voluntary to mandatory reporting, we’d like to highlight what investors are focused on. Today we look at Addenda Capital’s CSSB comments. Founded in 1996, Addenda Capital merged in April 2008 with Co-operators Investment Counselling Limited - a firm offering portfolio management services since 1985 - and has continued operating under the same name. With more than $37 billion in assets under management, Addenda Capital is recognized as a leader in sustainable investing. They feel strongly that Canada needs to align with international standards and move forward immediately, or investment in Canadian companies will be left behind. They also recommend keeping aligned with the ISSB recommendations on the timing of reporting with financial statements – with a grace period in the first year or a process where organizations could apply for an extension of up to 3 months to address this challenge. They also commented, that ‘CSA or provincial regulator adoption would only impact a select group of individuals. Inclusion of aligned requirements in the Canada Business Corporation Act is also important. To truly impact change, there needs to be a call for action from all companies in both the public and private sectors’. The full letter found in this link: https://lnkd.in/gzb2x_PY Tomorrow we review the British Columbia Investment Management Corporation (BCI) CSSB comments.

With so much attention on the shift from voluntary to mandatory reporting, we’d like to highlight what investors are focused on. To start this series of posts we reviewed the Ontario Securities Commission's approach to sustainable finance published on October 7th, 2024. Here are some key takeaways to the #OSC's approach to sustainable finance, which has significant implications for investing in Canadian businesses: 1️⃣ Increased focus on ESG disclosures: The OSC is prioritizing environmental, social, and governance (ESG) disclosures for public companies. This means investors can expect more standardized and comprehensive ESG-related information from Canadian businesses, allowing for better-informed investment decisions. 2️⃣ Alignment with global standards: OSC is working to align Canadian disclosure requirements with international standards, particularly those set by the International Sustainability Standards Board (ISSB). This alignment will make Canadian businesses more competitive in global capital markets and potentially more attractive to international investors. 3️⃣ Growth in sustainable investing: The document highlights significant growth in sustainable investing in Canada, with sustainable fund assets reaching CAD $60.9 billion in 2024's second quarter. This trend indicates increasing opportunities for investors to participate in sustainable investments in Canadian businesses. 4️⃣ Green bond market expansion: There's notable growth in the green bond market, which is increasingly being used to fund major sustainability projects. This presents new investment opportunities in Canadian businesses focused on sustainability initiatives. 5️⃣ Risk mitigation: By addressing ESG-related risks, the OSC aims to contribute to the stability of the financial system. This approach may help reduce systemic risks for investors in Canadian businesses. 6️⃣ Combating greenwashing: The OSC is working to provide clarity around regulatory expectations to reduce the risk of greenwashing. This effort aims to increase transparency and trust in sustainable finance, potentially making investments in Canadian businesses more reliable. 7️⃣ Competitiveness of Canadian businesses: The OSC recognizes the importance of keeping pace with international developments in sustainable finance. This focus aims to ensure that Canadian businesses remain competitive and attractive to both domestic and international investors. In summary, the OSC's approach to sustainable finance is likely to result in more transparent, standardized, and comprehensive ESG-related disclosures from Canadian businesses, potentially making them more attractive to a growing pool of sustainability-focused investors both domestically and internationally. To view the full report: https://lnkd.in/gHhZvkEs

As the #CSSB announced last week that they expect to issue #CSDS 1 & 2 this December we wanted to reshare the summary of feedback they received during their comment period...

🌍 October 24th marks the International Day of Climate Action, a global reminder that our choices and actions matter when it comes to protecting our planet. From reducing carbon emissions to increasing sustainability efforts, every action we take can contribute to a healthier, greener future for generations to come. At BlueMarvel AI, we’re committed to helping industries take meaningful steps toward sustainability. ⚡ With BlueMarvel.Energy, we’re optimizing energy management—driving efficiency, reducing waste, and minimizing environmental impact. 💧 BlueMarvel.Carbon delivers a bottom-up production accounting approach to industrial carbon management. By enabling precise emission tracking, credit validation, and intensity monitoring, we empower industries to comprehensively account for and reduce their carbon footprints in real time. Together, we can make climate action a reality. 🌱 Learn more about how we’re driving sustainable innovation at www.bluemarvel.ai #InternationalClimateActionDay #ClimateAction #Sustainability #IndustrialCarbonAccounting #EmissionTracking #EnergyInnovation #BlueMarvel #FutureOfEnergy

🌍 Over 500 organisations and $17.7 trillion AUM now committed to TNFD-aligned risk management and corporate reporting    Today at #COP16 in Cali, Colombia, we’re proud to announce that 502 organisations globally have committed to adopting TNFD-aligned nature-related risk management and corporate reporting. This marks a 57% increase in commitments since January 2024, reflecting the growing recognition of nature as a critical factor in business risk and opportunity management.    ⚡ Key highlights: ⬛ Commitments from organisations across 54 jurisdictions and sectors, including Banco de Bogotá, Mitsubishi Electric, Qantas, JSW Group and Logitech.  ⬛ 129 financial institutions, representing $17.7 trillion in assets, are now TNFD Adopters. ⬛ The announcement demonstrates that the market is moving quickly to embrace better nature-related risk management and disclosure aligned with the goals of the Global Biodiversity Framework.    With growing momentum, TNFD is helping businesses integrate nature-related risks into their strategies, fostering resilience and driving sustainable growth.    🔗 Read the full press release here: https://lnkd.in/gW58Tq53   🔗 View the full list of adopters here: https://lnkd.in/dfe42gNV    #TNFD #COP16 #Sustainability #NaturePositive #RiskManagement #GlobalBiodiversityFramework #CorporateReporting 

Attention Indigenous-owned-and-led creative agencies The Canadian Sustainability Standards Board (CSSB) is seeking proposals from Indigenous-owned-and-led creative agencies to develop a marketing-communications strategy that reflects our commitment to building and maintaining trust-based relationships with Indigenous Peoples. 📅 Proposals are due by November 6, 2024. For the full Request for Proposal and more details, please reach out to Lindsay C. Sidders, PhD. #IndigenousEngagement #MarketingStrategy #Sustainability #RFP #CSSB --- Appel aux organismes de création détenus et dirigés par des Autochtones Le Conseil canadien des normes d’information sur la durabilité (CCNID) sollicite des offres de service d’organismes de création détenus et dirigés par des Autochtones, en vue d’élaborer une stratégie de communication marketing qui reflète notre volonté d’établir et de maintenir des relations de confiance avec les peuples autochtones. 📅 Date limite de réception des propositions : le 6 novembre 2024 Pour obtenir l’appel d’offres intégral et pour en savoir plus à son sujet, veuillez communiquer avec Lindsay C. Sidders, PhD.  #RelationsAutochtones #StratégieMarketing #Durabilité #Appeldoffres #CCNID