The Autorité des marchés financiers (or AMF, which is a financial regulator for Quebec, Canada) announced that the Canadian Securities Administrators (CSA) proposed climate-related disclosure requirements. These requirements aim to address the need for more consistent and comparable information to help inform investment decisions. The consultation period for these disclosure requirements ends on January 17, 2022. AMF Canada also updated the disclosure guide for trust and savings companies licensed in Quebec.
The requirements contemplate disclosure that is largely consistent with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The requirements are intended to address costs associated with reporting across multiple disclosure frameworks, improve access to global markets, and facilitate an equal playing field for issuers. The proposed requirements contemplate disclosure by issuers related to the four core elements of the TCFD recommendations:
- Governance covers an issuer’s board’s oversight of and management’s role in assessing and managing climate-related risks and opportunities.
- Strategy covers the short-, medium- and long-term climate-related risks and opportunities the issuer has identified and the impact on its business, strategy, and financial planning, where such information is material. As a modification from the TCFD recommendations, the proposed disclosure would not include the requirement to disclose “scenario analysis,” which is an issuer’s description of the resilience of its strategy within different climate-related scenarios.
- Risk management covers how an issuer identifies, assesses and manages climate-related risks and how these processes are integrated into its overall risk management.
- The fourth disclosure element refers to the metrics and targets used by an issuer to assess and manage climate-related risks and opportunities where the information is material.
Issuers would be required to disclose their Scope 1, Scope 2, and Scope 3 greenhouse gas emissions and the related risks, or their reasons for not doing so. CSA is also consulting on an alternative approach that would require issuers to disclose Scope 1 greenhouse gas emissions. Under this alternative, disclosure of Scope 2 and Scope 3 greenhouse gas emissions would not be mandatory. The disclosure requirements would be phased in, as outlined in the notice, to give companies sufficient time to plan for implementation.
Comment Due Date: January 17, 2022
Keywords: Americas, Canada, Banking, Securities, Climate Change Risk, ESG, Governance, CSA, TCFD Recommendations, Disclosures, AMF
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous ArticleSwiss Federal Council Launches Swiss Climate Scores for Investors
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.