EJQ3 - Winter 2025 - Journal - Page 50
to weed out bad actors and incentivize Paris-aligned products.
Globally, there is a strong demand for ESG-related products and services
as indicated by MSCI ESG indexes, which have frequently shown resilience during market downturns, suggesting that sustainability-focused
strategies may o昀昀er better risk-adjusted returns. Research also consistently shows that 昀椀rms with strong ESG performance are better equipped
to manage risks and adapt to changing regulatory and market conditions.
Lastly, data-driven results and insights are inherently objective and less
prone to these criticisms, so as time goes on and data gets better, so will
opportunities to create policies, investment frameworks, and 昀椀nancial
instruments with transparent underlying methodologies supporting genuine climate action.
What are some organizational goals you’re excited about for the new
year?
This year ISF will be celebrating its 昀椀fth anniversary. It is amazing to witness the growth of awareness and support for sustainability that the organization has taken on since, but it is clear there is still more work to be
done and real challenges remain.
ISF will be launching exciting new projects on carbon markets, transition 昀椀nance, the sustainable bond market, natural assets, sustainable 昀椀nance data, advancing taxonomy development, and getting nature on the
balance sheet. ISF will also be pro昀椀ling some rigorous new academic research from Smith School of Business at Queen’s University.
Any other comments to share with readers working in
the environment sector?
ISF shares a sense of urgency with the sector for meeting Canada’s climate targets. There has been some notable progress, but a lot of investment is required, fast, to get to net zero by 2050, and the longer we wait,
the harder it will be. Faster progress on transition planning is required
mainly by the heavy emitting sector, as are accelerated investments into
climate solutions. It will require more than $100 billion annually, and
Canada is nowhere near there yet. Government cannot solve this problem
on its own, but it can create the conditions by setting the right policies
and standards to unlock the power of private capital.
James Sbrolla is a veteran of the 昀椀nancial and environmental
industries. Connie Vitello is editor of Environment Journal.
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