Business View Magazine | December 2020

9 BUSINESS VIEW MAGAZINE DECEMBER 2020 CANADA’S NET-ZERO ROADMAP IS AN IMPORTANT ALIGNMENT WIT WE NEED BETTER REPORTING, DISCLOSURE AND ACCOUNTABILITY C anada Climate Law Initiative (CCLI) applauds the federal government for introducing Bill C-12 which, if enacted, will set a strong pathway for Canada to reduce its greenhouse gas emissions by legally binding the government to achieve net-zero emissions by 2050. “The proposed Canadian Net-Zero Emissions Accountability Act will allow the federal government to demonstrate leadership in climate mitigation and adaptation. It signifies how imperative it is to address climate change,” said Dr. Janis Sarra, one of CCLI’s Principal Co-Investigators and professor of law at the University of British Columbia. “Canada must get ahead of the risks to financial stability posed by climate change to ensure a smooth transition to a low-carbon economy,” added Juvarya Veltkamp, CCLI’s Director. The new legislation would require the Minister in charge (to be identified by the Governor in Council) to establish clear targets and reporting on those targets in order to get the Canadian economy to net-zero by 2050. CCLI shares the view of many in the financial community that reporting, disclosure, and accountability are key elements that will allow Canada to remain competitive and continue to attract capital as the world adapts in light of the material physical and transition risk posed by climate change. The Bill specifically requires the Minister of Finance to report annually on efforts taken across government to take account of risks and opportunities from climate change. This legislation aligns government action with what the investment community has already publicly stated: we need better data and more quality disclosures in order to better understand the material environmental, social and governance risks and opportunities to companies and investors, including those risks OPENING L INES