Canadian PM calls on ministers to push for climate disclosures

December 24, 2021

Canadian Prime Minister Justin Trudeau has written to his finance and environment cabinet ministers urging them to push for mandatory climate-related financial disclosures.

The PM outlined a set of objectives for each minister to work towards as the country drives to achieve its net-zero-by-2050 goal, which it made last year.

In the letters to deputy prime minister and minister of finance to Canada Chrystia Freeland, and minister of environment and climate change Steven Guilbeault, the Prime Minister directed them “to move toward mandatory climate-related financial disclosures based on the Task Force on Climate-related Financial Disclosures”. He also asked them to mandate regulated institutions - financial institutions, pension funds and government agencies - to issue climate-related disclosures and net-zero plans.

Trudeau said in the letters:

“The science is clear. Canadians have been clear. We must not only continue taking real climate action, but we must also move faster and go further. As Canadians are increasingly experiencing across the country, climate change is an existential threat. Building a cleaner, greener future will require a sustained and collaborative effort from all of us.”

“As Minister, I expect you to seek opportunities within your portfolio to support our whole-of-government effort to reduce emissions, create clean jobs and address the climate-related challenges communities are already facing.”

In July 2021, Canada set an interim goal to cut greenhouse gas (GHG) emissions by 40%-45% by 2030.

The nation now joins a growing cohort of countries moving towards mandatory climate reporting for companies and financial institutions.

In October, the UK government announced plans to legislate mandatory climate-related disclosures.

The UK’s financial watchdog published finalised policy documents on such requirements for asset managers and owners on Friday. For the largest asset owners, annual mandatory disclosures will be required from January 1, 2022.

US SEC chair Gary Gensler revealed earlier this year he was aiming to formulate rules for mandatory climate risk reporting by companies by the end of 2021.