The Pension Investment Association of Canada is recommending the development of a flexible framework to guide institutional investors’ sustainability reporting, while encouraging innovation and addressing greenwashing.
In an open letter to the Competition Bureau, the PIAC said it would oppose any model that imposes disincentives on businesses disclosing strategy and process as it evolves. It argued that any approach that discourages the sharing of interim targets undermines the effectiveness and accuracy of the disclosure process, since short-, medium- and long-term goals based on decarbonization pathways are crucial for its members’ investment decisions.
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“Companies shouldn’t be afraid of ‘unwarranted or frivolous reprisal’ when it comes to accurate and evolving disclosure of their sustainability products or processes,” said the letter.
The PIAC also recommended any guideline should emphasize claims that align with scientifically-supported data and recognized metrics from groups like the Carbon Accounting Financials, the Science-based Targets Initiative, the Transition Plan Taskforce, the Net Zero Asset Owner Alliance or the Paris Aligned Investor Initiative.
It also requested the bureau to adopt the proposed Canadian Sustainability Disclosure Standards. “A robust and mandatory Canadian climate data disclosure framework is critical to maintaining the competitiveness of the Canadian market and will attract investors committed to the transition to a net-zero economy.
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