Official Response to the Principles for Responsible Investment’s Legal Framework for Impact for Canada from Senator Rosa Galvez

Ottawa, February 13, 2023 – The Honourable Rosa Galvez, independent Senator, made the following statements in reaction to the Principles for Responsible Investment’s Legal Framework for Impact for Canada:

“The report released today by the Principles for Responsible Investment regarding Canada’s legal framework confirms the results of the consultation with dozens of national and international experts in sustainable finance which informed Bill S-243, the Climate-Aligned Finance Act (CAFA), which I introduced last year.”

“Importantly, the report concludes that there is a “lack of legal clarity about investors duties and insufficient action by policy makers to encourage and enable responsible investment, rendering Canada a low-regulation jurisdiction by international standards.” “Canadian law limits the pursuit of positive sustainability impacts as an end in itself”. The report notes the absence of “consistent regulatory requirements for sustainability reporting that apply to all investors and issuers across Canada.” Bill S-243, the Climate-Aligned Finance Act, would bring much needed science-based consistency by aligning the activities of federal financial institutions and federally-regulated entities with Canada’s climate commitments. The bill would guide Canada’s financial sector through an orderly transition to a low-carbon economy while safeguarding the financial system from the systemic risks posed by climate change and respecting other social and environmental sustainability goals.”

“The report also reminded us that we have the highest CO2 emissions per capita among G7 nations and recommends legislation to address climate-related risks. It is time for Canada to go from laggard to leader on the climate and finance nexus. Allowing Bill S-243, the Climate-Aligned Finance Act, to proceed to a Senate committee review is the logical next step on that path.”

“The report highlights that “while Canada’s economy is largely based on services, the extractive industry has an outsized influence over the government”. There is growing evidence the fossil fuel industry’s outsized influence extends to the boards of Canadian pension funds and banks. Bill S-243, the Climate-Aligned Finance Act, is a worldwide first attempt to address these conflicts of interest, first through mandatory disclosure and eventual appointment prohibition after 5 years.”

About Rosa Galvez, Ph.D., P.Eng., FEC, FCSCE

Senator Rosa Galvez is an environmental engineer, a former professor at Laval University, an independent Senator for the province of Quebec, and President of the ParlAmericas’ Parliamentary Network on Climate Change. She introduced Bill S-243, the Climate-Aligned Finance Act, a piece of legislation to align the activities of federal financial institutions and federally-regulated entities with Canada’s climate commitments in March 2022. She was sponsor in the Senate of the Canadian Net-Zero Emissions Accountability Act which was adopted in June 2021 and was the recipient of the 2021 Clean50 award for her parliamentary work on environmental policy. She attended COP27 in Egypt advocating for legislative action requiring financial activities to align with and support climate commitments.

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For more information please contact:

Karine Péloffy | Parliamentary and Legal Affairs Advisor | Office of Senator Rosa Galvez

343-548-1495 | Karine.Peloffy@sen.parl.gc.ca

 

Stéphane Laviolette | Political Strategic Advisor and Office Manager | Office of Senator Rosa Galvez

613-996-2210 | Stephane.Laviolette@sen.parl.gc.ca

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