The Pension Investment Association of Canada is providing feedback on the International Sustainability Standard Board’s exposure drafts on disclosure of financial information pertaining to sustainability and climate change.

In an open letter responding to a consultation by the ISSB, the PIAC said while it supports the ISSB’s decision to build upon existing reporting frameworks — such as the recommendations established by the Financial Stability Board’s task force on climate-related financial disclosures — it also recommended the ISSB guides institutional investors to the Sustainability Accounting Standards Board’s standards, to help identify and monitor industry-specific sustainability risks and metrics.

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The PIAC also recommended requiring disclosure on a set of cross-industry metrics, including capital deployment towards climate-related risks and opportunities, greenhouse gas emissions, internal carbon pricing, percentage of executive management remuneration and transition and physical risks.

“Since climate change poses a systemic risk to both issuers and [institutional] investors and creates an imperative to support the orderly transition to a low-carbon economy, information on a companies’ transition plans, including how a company intends to align to a low carbon economy and the establishment of short and long-term targets is useful to investors,” said the letter.

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