The establishment of a green and transition taxonomy by the federal government will help provide the confidence and transparency that investors need to make decisions that are consistent with Canada’s climate objectives and transition pathways, as well as organization-specific climate action plans or net-zero commitments, said the Pension Investment Association of Canada.
In an open letter, the PIAC expressed approval for the recommendations outlined in a report by the Sustainable Finance Action Council, noting the taxonomy could also help attract domestic and international investments to Canadian companies and activities.
Read: Government advisory group urges Canada to develop sustainable finance taxonomy
During the council’s most recent meeting, held in July 2023, it presented the recommended taxonomy governance model. The proposed taxonomy is being designed to help meet the feds’ climate goal of transitioning to a net-zero emissions economy by 2050.