EJQ3 - Winter 2025 - Journal - Page 47
quire good information to make sustainable choices. While large corporations are increasingly reporting on their greenhouse gas emissions and net
zero targets, it is necessary to mandate rigorous, comparable climate-related 昀椀nancial reporting as the EU and other jurisdictions have done.
Scope 3 emissions: Di昀케culties remain in measuring and reporting Scope
3 emissions, or greenhouse gas emissions from a company’s customers
and suppliers. Standardizing and achieving comprehensive scope 3 accounting are necessary to provide investors and consumers with the best
information and to prevent 昀椀rms from outsourcing emissions to their
supply chains to create the appearance of progress, while making no
meaningful change to overall real emissions.
Undervaluing nature: We need a consensus on the value and pricing of
nature in business decision-making which requires a signi昀椀cant shift. As
highlighted at COP16, nature and the economy are inseparable, yet much of
nature’s value remains unrecognized. Bridging the $700 billion biodiversity
昀椀nance gap demands aligning 昀椀nancial strategies with nature-positive
goals, integrating nature-related risks into business plans, and fostering
cross-sector partnerships. Development 昀椀nance institutions and the private
sector must collaborate to embed nature in investment decisions, ensuring
sustainable growth and the conservation of vital ecosystems.
A lack of “circularity”: Current business models are built on the premise
of “take-make-consume-dispose.” A paradigm shift is required to rede昀椀ne how our economies function, reduce dependencies on 昀椀nite virgin materials and move towards circularity. This contradicts the interests
of many businesses, whose pro昀椀ts are dependent on consumers buying
more (e.g. debates regarding the right t`o repair).
What policies and incentives do you think are needed to drive the
cleantech market and clean energy transition, and how are Canadian
leaders helping to move the needle?
ISF is closely following the development of the sustainable 昀椀nance policy framework in Canada, with some signi昀椀cant announcements expected
soon. It is expected that the federal government will deliver on its promise of a taxonomy plan announced in October, and we will see 昀椀nalized
sustainability disclosure standards from the Canadian Sustainability
Standards Board.
The necessary elements to accelerate capital to climate solutions remain a
taxonomy (guidelines for credible green and transition investments) and
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