The Insurance Bureau of Canada (IBC) is pleased with the federal government’s formation of the Sustainable Finance Action Council (SFAC), the association said in a statement.
“The creation of the council is a win for Canada and will benefit Canadians in the near and long term,” said Don Forgeron, president and chief executive officer of IBC.
“We anticipate the council will articulate a long-term policy framework and road map for low emissions and climate-resilient growth and develop a capital plan to meet these goals. We will be watching its progress with enthusiasm, as the council will focus on issues of importance to our industry and to all Canadians.”
Forgeron added that insurers have been stressing the need to coordinate physical and transition risk data risk through the Canadian Centre for Climate Information and Analytics.
“Consistent disclosure of climate-related financial risk is essential to incentivize the investment needed to transition Canada to a net-zero, resilient economy by 2050,” he said.
The government’s creation of the SFAC is in line with the recommendations of the Expert Panel on Sustainable Finance.
The council’s goal is to make recommendations on critical market infrastructure needed to attract and scale sustainable finance in Canada to improve climate disclosures and ensure access to sustainability data and climate risks. It is also tasked to develop standards for sustainable investments.
“Mobilizing private sector capital is critical to financing the transition to a low-carbon economy,” Forgeron said. “Around the world, institutions and investors are increasingly factoring environmental, social and governance considerations into their business and investment decisions and evaluating the climate change risks and climate action opportunities of their assets and portfolios.
“Developing sustainable finance in Canada will promote the long-term growth and stability of our financial system in the face of climate change. Sustainable finance will also create new opportunities for Canadian businesses and investors.”
The council will receive $7.3 million in funding over the next three years.