Sustainable Finance Action Council - Third Plenary Meeting
January 12, 2022
Meeting Readout
The Sustainable Finance Action Council (SFAC) held its third meeting on January 12, 2022. The objectives of the meeting were to hear perspectives from institutions that took part in the Bank of Canada and Office of the Superintendent of Financial Institutions (OSFI) climate scenario analysis pilot, understand the priorities of the Net-Zero Advisory Body (NZAB), and discuss progress of the SFAC Technical Expert Groups (TEGs).
The SFAC was provided with an overview of the key results and learnings from the pilot project on climate scenario analysis led by the Bank of Canada and OSFI, through a panel discussion with the six participating financial institutions (RBC, TD, Manulife, Sun Life, Intact Financial, and Co-operators). The Bank of Canada and OSFI reiterated the objectives of this pilot were to assist with identifying, measuring and disclosing climate-related risks through development of scenarios. While the scenarios were not intended to be forecasts or predictions, panelists noted that the work illustrated sectoral restructuring that Canadian and global economies may need to undertake to meet climate targets. Pilot participants expressed the value in collaborating on this work and noted both private and public sectors are in the early stages of building capacity to assess risks related to climate change, and welcomed more opportunities to work together.
The co-chairs of the Net-Zero Advisory Body (NZAB) provided an overview of the NZAB’s priorities. They also provided an update on the NZAB’s forthcoming advice to government for the Emissions Reduction Plan, including its work to develop guiding principles to inform the development of quantitative five-year emissions reduction targets for the oil and gas sector.
The SFAC Chair and leads of the TEGs provided updates on the work underway in the TEGs to support enhanced climate-related disclosure, taxonomies and data gaps, and noted recent engagements with experts outside of the SFAC.
The SFAC meeting concluded with remarks from the Minister of Environment and Climate Change, the Honourable Steven Guilbeault, who highlighted the challenges in determining how to minimize risks of decarbonization and opportunities for Canada in its transition to a low-carbon economy. He also noted the growing momentum from the private sector, especially the financial sector, in taking action and making commitments towards net-zero, and thanked SFAC organizations for their continued work.
Participating organizations
- AIMCO
- ATB Financial
- Aviva Canada
- BMO Financial Group
- British Columbia Investment Management Corporation
- Canada Life
- Canada Pension Plan Investment Board
- Canadian Imperial Bank of Commerce
- CWB Financial Group
- Desjardins Group
- Healthcare of Ontario Pension Plan
- Intact Financial Corporation
- Manulife
- National Bank Financial
- Ontario Municipal Employees Retirement System (OMERS)
- Ontario Teachers’ Pension Plan
- PSP Investments
- Royal Bank of Canada
- Scotiabank
- Sun Life
- TD Bank Group
- The Co-operators Group
- University Pension Plan
- Vancity
Also in attendance was the Official Sector Coordinating Group, made up of:
- Alberta Securities Commission
- Autorité des marchés financiers
- Bank of Canada
- British Columbia Financial Services Authority
- British Columbia Securities Commission
- Environment and Climate Change Canada
- Finance Canada
- Financial Services Regulatory Authority of Ontario
- Office of the Superintendent of Financial Institutions
- Ontario Securities Commission
Additional speakers
- Additional panelists on the Bank of Canada-OSFI climate scenarios pilot (TD, RBC, Co-operators, Intact Financial, Sun Life and Manulife)
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