Sustainable Finance Action Council - Second Plenary Meeting

October 28, 2021

Meeting Readout

The Sustainable Finance Action Council (SFAC) held its second meeting on October 28, 2021.  The objectives of the meeting were to: continue an exchange with official sector coordinating group members on their climate-related work; discuss the progress of the SFAC Technical Expert Groups (TEGs); and review initial SFAC workplans.

The SFAC Chair highlighted the significant developments that have transpired since the SFAC was established, indicating financial sector momentum to support Canada’s transition to a low-carbon economy. These developments include:  Canada’s Big 6 banks and Vancity becoming signatories to the Net-Zero Banking Alliance, under the umbrella of the UN Glasgow Financial Alliance for Net Zero (GFANZ) and 15 SFAC organizations involved in Climate Engagement Canada, an investor-led initiative driving dialogue between the financial community and corporate issuers to promote a just transition to a net-zero economy.

The SFAC heard from the Superintendent of Financial Institutions, who discussed the role the Office of the Superintendent of Financial Institutions (OSFI) in addressing climate change risks, noting that Canada’s economy will have to adjust to those risks, and Canada’s financial system will be a critical enabler to that adjustment. The Superintendent provided updates on key elements of OSFI’s workplan, including the climate scenario analysis pilot project with the Bank of Canada, and its plan to publish risk management guidance in 2022.  A member of the  Canadian Securities Administrators (CSA) provided an overview of the CSA’s proposed National Instrument 51-107 – Disclosure of Climate-related Matters published on October 18, 2021 for a 90-day comment period*, noting that the rule largely aligns with the TCFD framework. SFAC participants were encouraged to provide views to the CSA, including related to their own experiences preparing disclosure, and the benefits, costs and challenges associated with the proposed national instrument.

The SFAC Chair and leads of the TEGs outlined the high-level SFAC workplan.  Recent engagement with the Net-Zero Advisory Body was highlighted as an important development, as was the intention for broader engagement with expertise outside of the SFAC to support its work. 

Finally, Canada’s Ambassador for Climate Change provided an overview of Canada’s involvement at COP26, including the global emissions reduction ambition gap, climate finance, and finalizing negotiations from the Paris Agreement.

* The consultation period originally ending January 17, 2022 was extended to February 16, 2022.

Participating organizations

• 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        
• 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

• Patricia Fuller, Ambassador for Climate Change (Canada)
• Peter Routledge, Superintendent of Financial Institutions