2023 to 2027 Departmental Sustainable Development Strategy

Cat. No.: FC3-3E-PDF

ISSN 2817-7940

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Cover photo: © Environment and Climate Change Canada

© His Majesty the King in Right of Canada, as represented by the Minister of Finance Canada, November 2023. Aussi disponible en français

Section 1. Introduction to the Departmental Sustainable Development Strategy

The 2022 to 2026 Federal Sustainable Development Strategy (FSDS) presents the Government of Canada’s sustainable development goals and targets, as required by the Federal Sustainable Development Act. This is the first FSDS to be framed using the 17 Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and provides a balanced view of the environmental, social and economic dimensions of sustainable development.

In keeping with the purpose of the Act, to make decision-making related to sustainable development more transparent and accountable to Parliament, the Financial Consumer Agency of Canada (FCAC) supports the goals laid out in the FSDS through the activities described in this Departmental Sustainable Development Strategy (DSDS).

The Federal Sustainable Development Act also sets out 7 principles that must be considered in the development of the FSDS as well as DSDSs. These basic principles have been considered and incorporated in FCAC’s DSDS.

In order to promote coordinated action on sustainable development across the Government of Canada, this departmental strategy integrates efforts to advance Canada’s implementation of the 2030 Agenda National Strategy, supported by the Global Indicator Framework (GIF) and Canadian Indicator Framework (CIF) targets and indicators. The strategy also now captures SDG initiatives that fall outside the scope of the FSDS to inform the development of the Canada’s Annual Report on the 2030 Agenda and the SDGs.

Section 2. The Financial Consumer Agency of Canada’s sustainable development vision

About the Financial Consumer Agency of Canada (FCAC)

FCAC was established in 2001 to protect the rights and interests of consumers of financial products and services. FCAC derives its mandate from the Financial Consumer Agency of Canada Act, which outlines the Agency’s functions, administration, and enforcement powers, and lists the sections of federal laws and regulations under its supervision. FCAC is an independent agency that reports to Parliament through the Minister of Finance.

The Agency achieves its mandate by delivering two programs designed to:

• promote, monitor and enforce compliance on the part of regulated entities that are subject to market conduct obligations established by legislation, codes of conduct and public commitments
• strengthen the financial literacy and resilience of Canadians through evidence-based research and stakeholder collaboration, to propose policies, educate consumers and encourage actions to improve financial outcomes

As the authoritative voice in matters of financial consumer protection, FCAC plays a critical role in the oversight of the financial sector in Canada. Consumer protection is important for Canadians: it builds trust and confidence in

Canada’s financial system.

FCAC’s context

FCAC supports the Federal Sustainable Development Strategy and the United Nations’ Sustainable Development Goals through its mandate to protect financial consumers and how it operates internally as an Agency. FCAC’s DSDS is focused on 3 sustainable development goals: advancing reconciliation with Indigenous peoples and taking action on inequality, responsible consumption and taking action on climate change.

Advancing reconciliation with indigenous peoples and taking action on inequality

FCAC undertakes its work in close collaboration with its large network of stakeholders and partners in Canada and internationally. The Agency regularly collaborates with 18 financial literacy networks across Canada, representing approximately 600 organizations. Stakeholders include the Assembly of First Nations, the National Representational Organization for Inuit in Canada and the Seven Generations Education Institute. The Agency also chairs the Financial Literacy Working Group for Indigenous Peoples. The Financial Literacy Working Group for Indigenous Peoples was established to assist FCAC in responding to the financial literacy needs of Indigenous Peoples, including First Nations, Inuit and the Métis Nations. The working group is comprised of leaders from a broad representation of Indigenous and non-Indigenous organizations and its mandate is to undertake financial literacy initiatives that are community- driven, created for and with Indigenous Peoples.

Canadians are not a homogenous group and different segments of the population have unique needs which are likely not captured by what is commonly held to be the “average” reference point. In July 2021, FCAC released Make Change that Counts: National Financial Literacy Strategy 2021–2026. The Strategy provides a framework to build a more accessible, inclusive and effective financial ecosystem for all Canadians. It is a 5-year plan that focuses on reducing barriers, catalyzing actions, and creating new opportunities for Canadians to achieve positive financial outcomes and build financial resilience. To inform the Strategy, FCAC consulted with financial literacy stakeholders across Canada, hosting 8 stakeholder roundtable discussions which included representatives from 90 organizations and focused discussions around the needs of specific consumer segments: Indigenous peoples, seniors, women, newcomers to Canada, people of colour, francophones and people living on low income.

FCAC’s diverse and talented employees are the foundation of its success. The Agency remains focused on employee well-being and on enhancing its tools, business processes and organizational functions in an inclusive, barrier-free environment to help them serve Canadians. FCAC released its first Equity, Diversity and Inclusion Action Plan in March 2022 to support a strategic and coordinated approach to building both a culture and business ethos where valuing equity, diversity and inclusion is the norm. The triennial plan is a roadmap to foster a culture of diversity and inclusion, create a more inclusive and diverse workplace, and integrate equity, diversity and inclusion into the Agency’s core programming.

Responsible consumption

FCAC adheres to the Government of Canada’s policies, directives and guidelines for the acquisition, management, and disposal of assets, ensuring that it operates in an environment-friendly manner and supports sustainable development objectives. Green strategies are considered for every procurement action and the Agency disposes of all assets using green strategies such as donating equipment to the Computers for Schools program.

In recent years FCAC has transitioned from many paper-based processes to digital practices. The Agency’s IM/IT tools and technologies were moved to a cloud-based system in 2021. The cloud introduced new and varied methods for collaborating in a virtual environment, including employees working together on documents digitally. Digital signatures are also used for many processes. These initiatives have reduced paper consumption and the use of printers considerably.

Taking action on climate change

FCAC advances the rights and interests of financial consumers by conducting research and developing timely, evidence-based analysis and advice on financial protection issues. In 2022, FCAC, along with the Department of Finance, contributed to the update of the G20/ Organisation for Economic Co-operation and Development’s (OECD) High-Level Principles of Financial Consumer Protection. These forward-looking principles represent best practices and will provide fresh guidance to regulators, researchers, educators and policy makers around the world, including FCAC. Three cross-cutting themes were also identified that are relevant to the consideration and implementation of each of the Principles, one of which is sustainable finance.^{Footnote 1} 

Climate change and the threat it poses could significantly impact the safety and soundness of Canada’s financial system.^{Footnote 2}  FCAC will continue to support its regulatory partners and international stakeholders by developing timely, evidence-based analysis and advice on this emerging financial protection issue.

Section 3. Listening to Canadians

As required by the Federal Sustainable Development Act, FCAC has considered comments on the draft 2022-2026 FSDS made during the public consultation held from March 11 to July 9, 2022.

During the public consultation, more than 700 comments were received from a broad range of stakeholders, including governments, Indigenous organizations, non-governmental organizations, academics, businesses, and individual Canadians in different age groups and of various backgrounds. The draft FSDS was also shared with the appropriate committee of each House of Parliament, the Commissioner of the Environment and Sustainable Development, and the Sustainable Development Advisory Council for their review and comment.

The input received during FSDS consultations aligns with how FCAC fulfills its mandate and operates as an Agency.

Consider the perspectives of marginalized communities and vulnerable populations

Several Canadians consulted for the FSDS mentioned support for resiliency for marginalized communities and increasing research on challenges faced by vulnerable populations. This feedback is similar to what FCAC heard during consultations undertaken to develop the National Financial Literacy Strategy. Many Canadians indicated that “mainstream” financial information can alienate certain populations by failing to recognize their financial contexts and priorities and financial literacy efforts should speak to these realities. Stakeholders suggested that banks and other financial institutions should tailor their programs, services and activities “from the bottom up” and reflect the perspectives of diverse audiences.

FCAC takes an intersectional approach to fulfilling its mandate, seeking to understand and consider the demographic and socio-economic characteristics, behaviours, motivations and challenges of Canada’s diverse population, with particular attention to vulnerable groups. The Agency develops and adapts its interventions to address the diverse needs of different populations, promoting access to financial products and services, and the reduction of any identified systemic barriers and/or discrimination in the financial sector.

For example, FCAC’s COVID-19 Financial Well-being Survey, which began in August 2020, is a nationally representative hybrid online-phone survey fielded monthly, with approximately 1,000 respondents per month. The survey collects information on Canadians’ day-to-day financial management and financial well-being. FCAC’s goal is to provide insight into the financial well-being of Canadians, to identify which groups are experiencing greater vulnerabilities and hardships, and to inform and target the financial ecosystem stakeholders’ response. As of September 2022, the survey results show that over the past several months, financial hardships have increased for many Canadians due to the rapidly evolving economic environment. While financial vulnerability can affect anyone regardless of income, background or education, hardships have increased more for those living on a low income, Indigenous peoples, recent immigrants, and women, due to the disproportionate financial impact of the pandemic on these groups.^{Footnote 3}

Climate change is a top priority for Canadians

Many Canadians consulted for the FSDS cited climate change as a top priority. In 2020 FCAC began a workplace modernization project to transform how and where the Agency operates. This initiative supports the Government of Canada’s Greening Government Strategy, greening FCAC’s operations by reducing the Agency’s use of resources and decreasing green house gas emissions.

The Agency’s workplace modernization project includes investments in FCAC’s Ottawa and Toronto locations. Construction to modernize the Ottawa office was completed in March 2023, offering Agency employees a modernized and fully accessible workspace with natural light, automated temperature and lighting controls and green space.

Construction on FCAC’s new Toronto office will conclude in Fall 2023, establishing a permanent presence in Canada’s financial hub and reducing the frequency of employee travel between the two cities. Both offices are located in Leadership in Energy and Environmental Design (LEED) certified buildings.

These new office spaces complement the Agency’s hybrid work model that began to take shape prior to the pandemic, recognizing that greater flexibility is required to attract, retain, and support employees from across Canada. FCAC’s operating model includes a mix of in-office and telework with employees working together seamlessly, supported by cloud-based IM/IT tools and technologies. Most Agency employees work from home on some days, reducing consumption of resources and commute-related greenhouse gas emissions.

Find more information on the FSDS public consultation and its results in the FSDS Consultation Report.

Section 4. Financial Consumer Agency of Canada’s commitments

Goal 10: Advance reconciliation with Indegenous Peoples and take action on inequality

FSDS Context

FCAC protects financial consumers and strengthens the financial literacy of Canadians by raising awareness of their rights and responsibilities in their dealings with financial institutions and by researching and educating about financial literacy issues. As a federal agency, FCAC is committed to advancing equity, diversity, and inclusion (EDI) in its core business activities and employment practices.

A leader in reducing barriers to improve consumer financial outcomes, FCAC takes an intersectional approach in fulfilling its mandate, seeking to understand and consider demographic and socio-economic characteristics, behaviours, motivations, challenges and communication preferences. The Agency tailors its financial literacy and consumer protection interventions and products to the needs of diverse demographics and engages stakeholders and partners in doing the same.

As an employer, FCAC seeks to attract and retain a diverse workforce that is representative of Canadians and to foster an inclusive, respectful, and enabling workplace where all contributions and perspectives are valued. FCAC continues to develop and strengthen its foundational people management policies, and leaders and employees receive training appropriate to their roles. FCAC’s approach to EDI is supported by its Action Plan, which includes actions informed by its first employment systems review, targeted recruitment strategies, accommodation and accessibility measures, and intentional efforts to celebrate diversity and promote inclusion. As of March 31, 2023, FCAC’s representation of three of the four employment equity groups, specifically women, members of visible minorities and persons with disabilities, exceeded workforce availability. FCAC’s representation of Indigenous employees increased, but a slight gap will receive sustained attention.

Target theme: Advancing reconciliation with First Nations, Inuit, and the Métis communities

Target: Between 2023 and 2026, and every year on an ongoing basis, develop and table annual progress reports on implementing the United Nations Declaration on the Rights of Indigenous Peoples Act (Minister of Justice and Attorney General of Canada)

Initiatives advancing Canada’s implementation of SDG 10 – Reduced Inequalities

The following initiatives demonstrate how FCAC programming supports the 2030 Agenda and the SDGs, supplementing the information outlined above.

Goal 12: Reduce waste and transition to zero-emission vhicles

FSDS Context:

FCAC adheres to the Government of Canada’s policies, directives and guidelines for the acquisition, management, and disposal of assets, ensuring that it operates in an environment-friendly manner and supports sustainable development objectives. Green strategies are considered for every procurement action.

In recent years FCAC has transitioned from many paper-based processes to digital practices. The Agency’s IM/IT tools and technologies were moved to a cloud-based system in 2021. The cloud introduced new and varied methods for collaborating in a virtual environment and has reduced the consumption of resources including writing and printing materials.

FCAC does not own real property and does not maintain a vehicle fleet.

Target theme: Federal Leadership on Responsible Consumption

Target: By 2030, the Government of Canada will divert from landfill at least 75% by weight of non-hazardous operational waste (All Ministers)

Target: The Government of Canada’s procurement of goods and services will be net-zero emissions by 2050, to aid the transition to a net-zero, circular economy (All Ministers)

Goal 13: Take action on climatre change and its impacts

FSDS Context:

In 2020 FCAC launched a workplace modernization project to transform how and where the Agency operates. This project includes investments in FCAC’s Ottawa and Toronto locations, offering workspaces that have incorporated greening strategies. These offices complement the Agency’s hybrid work model which includes a mix of in-office and telework. Employees work together seamlessly, supported by cloud-based IM/IT tools and technologies. Collectively, these initiatives reduce the use of resources and lower travel-related green house gas emissions.

FCAC does not own real property, however the Agency’s leased spaces are located within Leadership in Energy and Environmental Design (LEED) certified buildings.

Target theme: Federal Leadership on Greenhouse Gas Emissions Reductions and Climate Resilience

Target: The Government of Canada will transition to net-zero carbon operations for facilities and conventional fleets by 2050 (All Ministers)

Target: The Government of Canada’s procurement of goods and services will be net-zero emissions by 2050, to aid the transition to a net-zero, circular economy (All Ministers)

Section 5. Integrating sustainable development

FCAC will continue to ensure that its decision-making processes include consideration of the FSDS goals and targets, and sustainable development more broadly, including through a strategic environmental assessment (SEA) process, if required. An SEA for a policy, plan or program proposal includes an analysis of the impacts of the given proposal on the environment, including on relevant FSDS goals and targets.

To date, FCAC has not been required to conduct a detailed SEA of policy, plan and program proposals. Statements on the results of FCAC’s assessments are made public when an initiative that has undergone a detailed SEA (see here). The purpose of the public statement is to demonstrate that the environmental effects, including the impacts on achieving the FSDS goals and targets, of the approved policy, plan or program have been considered during proposal development and decision making.