The Pension Investment Association of Canada is urging the Canadian Securities Administrators to resume work on a climate-related disclosure mandate that could impact decision-making at Canadian institutional investors.
In an open letter to the CSA, the PIAC said the adoption of standardized disclosures and reporting supports Canadian pension plan sponsors by optimizing investment and human capital to deliver risk-adjusted returns to current and future members.
Read: Canadian securities regulator pauses mandatory disclosure guideline development
The CSA paused its work on the disclosure mandate in April, citing the need to target initiatives that make Canadian markets more competitive amid the rise of significant changes to the global economic and geopolitical landscape.
Conversely, the PIAC said the disclosure rule could help attract investment by reducing risk and ambiguity for investors while driving innovation and competitiveness, encouraging Canadian companies to assess and improve their climate strategies against a standard that’s globally aligned.
“A clear, climate-related disclosure rule will also enhance the attractiveness of investing in Canada by increasing competitiveness among global markets. Standardizing climate-related disclosures will improve transparency and comparability among companies in Canadian markets, making investing in Canada less resource-intensive.”
Read: Open letter calls on regulators to restart climate disclosure work