Moving Capital Markets
Over 30 Canadian financial institutions, including the leading banks and the largest pensions, have adopted net zero targets and scaled up their efforts to align with the Paris Agreement. Despite this, the climate financing gap is currently acute for Canada, with an estimated annual investment gap of around CA$115 billion.
With oil and gas, transportation, buildings, and heavy industry representing more than three-quarters of Canada’s total national emissions, the country needs to make significant investments in decarbonizing these high-emitting sectors to achieve an orderly transition to net zero.
Immediate and coordinated action is needed from the financial sector. This challenge has been identified by the A4S CFO Leadership Network, and the Canadian chapter members are leading efforts to expand practical guidance for financial institutions.
Why is transition finance important?
Financial institutions recognize that addressing systemic climate-related risks and opportunities aligns with their fiduciary duty to act in the interests of beneficiaries/clients in achieving long-term value. By acting now, they can play a pivotal role in mobilizing the capital needed and directing finance flows to enable a sustainable future, ensuring positive impact and returns, and supporting a company’s transition.
Moving capital markets: The Playbook
Financial actors can actively support this transition by engaging with expert insights, implementing best practices and driving finance flows into sustainable initiatives.
To address this need, A4S will provide expert insights and clear actions to help capital markets support carbon reduction goals and achieve long-term value creation. Members of the Canadian Chapter of the CFO Leadership Network are collaborating to create the guidance ‘Playbook’.
We will identify challenges, assess current efforts by financial institutions, and highlight key actions and tips that other organizations can take to drive sector-wide progress.
If you are interested in receiving the playbook please register your interest below.
