TFI Sustainable Finance Strategy

Canada’s Expert Panel on Sustainable Finance defined sustainable finance as follows: “Sustainable finance is viewed as capital flows (as reflected in lending and investment), risk management activities (such as insurance and risk assessment), and financial processes (including disclosure, valuations, and oversight) that assimilate environmental and social factors as a means of promoting sustainable economic growth and the long-term stability of the financial system.”

Global financial centres such as Toronto are viewing “sustainable or green finance” as a strategic priority and a critical element for the growth and competitiveness of the financial sector and the broader economy. According to global investment giant BlackRock, in 2012 global sustainable investment was US$13.3 trillion. By 2018, it had grown to US$30.7 trillion.

TFI is working with the financial sector and our international partners to establish a strategy for the Toronto Financial Centre’s role in developing and growing sustainable finance in Canada in order to capitalize on the economic opportunity that can be created by the transition to a low carbon economy.

Defining Transition Finance in Canada

Canada's Expert Panel on Sustainable Finance noted that "several international initiatives are in the process of advancing standardized taxonomies for green and related investments, and early precedents have emerged. However, initial criteria seem to exclude opportunities for GHG emissions reductions brought by innovation within heavy resource and industrial sectors. This restrictive scope could exclude some of Canada’s core economic sectors from certain investment mandates, benchmarks, funds, and accreditation standards – even if companies in these sectors are pursuing projects and strategies that lead to better environmental improvements than approved pure green projects."

To address this challenge the CSA Group, working with financial stakeholders such as TFI, are currently leading the development of a Canadian taxonomy for Transition Finance.

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International Network of Financial Centres for Sustainability

TFI is a member of the International Network of Financial Centres for Sustainability (FC4S) which is a partnership between global financial centres and the United Nations Environment Programme. The FC4S objective is to: 1) exchange experience and take common action on shared priorities to accelerate expansion of green and sustainable finance; 2) strengthen international connectivity and create framework for common approaches.

The network is currently focused on initiatives to establish clarity and convergence on sustainable finance taxonomy, increase green finance activity and skills base in global financial centres, and foster innovation in sustainable finance markets.

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Sustainable Finance Reports

Read the latest research papers on Sustainable Finance trends in Toronto/Canada:

Global Sustainable Investment Review 2020 (GSIR)
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North America State of the Market 2021
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Sustainable financing and investing survey 2020 Canada focus (HSBC)
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2020 Canadian Responsible Investment Trends Report
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RBC Global Asset Management: 2020 Responsible Investment Survey
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Capital Mobilization Plan for a Canadian Low Carbon Economy
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Bridging the Transparency Gap in Sustainable Finance
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Canada’s Expert Panel on Sustainable Finance
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Capitalizing on Sustainable Finance: A Growth Opportunity for Toronto's Financial Sector
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TFI Resource Centre for Sustainable Finance

Key resources regarding sustainable finance in Canada and globally.

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