Why Canada’s Investors Should Take Action To Improve Sustainability Impacts & Mitigate Climate Risks
- Media Manager
- Feb 14, 2023
- 1 min read
Principles for Responsible Investing
Published: February 13th, 2023
The Canadian Legal Framework for Impact (LFI) report brings strong policy recommendations to encourage sustainable investing in Canada
Failure to halt environmental degradation could trigger trillions in lost GDP; but positive sustainability impact can mitigate the risks and generate new opportunities
Today, the Principles for Responsible Investment (PRI) in partnership with the United Nations Environment Programme Finance Initiative (UNEPFI) and the Generation Foundation released the Canada Legal Framework for Impact policy report.
It sets out how Canadian investment law permits - and in some circumstances requires investors to consider pursuing improved sustainability outcomes, as a means to achieve financial returns and protect financial value.
But narrow interpretation of existing laws and reluctance to change established practices mean Canada’s investors still limit themselves from pursuing sustainability impacts.
To help address sustainability challenges, the report recommends new guidance to clarify laws and investment policy reforms that help investors to address sustainability impact goals in accordance with their fiduciary responsibility.
“By providing investors with legal clarity and enabling policies, Canada can emerge as a leader when it comes to responsible investing,” said David Atkin, CEO at the Principles for Responsible Investment.
