The Business Case

Climate Engagement Canada (CEC) is a finance-led initiative that drives dialogue between the financial community and corporate issuers to help Canadian public companies successfully transition to a net zero economy—to the benefit of investors, companies, employees and consumers.

Climate Engagements for Investors: Join other investors in engaging constructively with corporate issuers exposed to climate risk to seize the tremendous opportunities of Canada’s transitioning economy.

Dedicated Research & Engagement Support: While engagement to address climate risk is an important part of an investor’s stewardship activities, its full impact is unrealized because it is resource intensive. CEC offers dedicated research and engagement support services via its professional Joint Secretariat.

Data Reliability and Consistency: CEC has centralized its benchmarking and research via an expert Secretariat, to ensure that engagement resources are credible and consistent, and that benchmarking is systematic and comparable.

The BIG PICTURE

Climate change damage could cost Canada up $2.8 trillion if global temperatures rise by 2°C.* CEC amplifies and accelerates efforts to encourage Canadian businesses toward a thriving future, while helping those most exposed to climate risk move onto the necessary path and seize the tremendous opportunities of a transitioning world.

*Source: Institute for Sustainable Finance, The Physical Costs of Climate Change, A Canadian Perspective (2022)

What CEC Investor Participants Expect of Focus List Companies

Here are the five key expectations that CEC investor participants will ask of CEC Focus List companies:

Companies should implement a strong governance framework that clearly defines board and senior leadership accountabilities and oversight of climate change risks and opportunities.

Companies should develop and implement a comprehensive strategy to reduce GHG emissions and build climate resiliency across the value chain, consistent with the goals of the Paris Agreement (to limit the increase in global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase even further to 1.5°C). This should include:

Strategies to reflect Canada’s evolving economic context, including “just transition” goals in the context of each company’s unique trajectory and impacts (e.g., impacted employee groups, land use, biodiversity).
An enhanced Oil & Natural Gas industry-wide commitment to responsible production and adequate GHG emission transparency.
An ambition to achieve Net-Zero GHG emissions by 2050, consistent with a 1.5°C scenario as detailed by the IPCC.

Companies should set measurable, sector-relevant targets.

Companies should disclose in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Companies should align their advocacy activities with the goals of the Paris Agreement, whether internally or in partnership with external groups or trade associations.

Led by International and Canadian Investor Networks

Coordinating CEC's efforts is led by professional not-for-profit organizations that together act as the Secretariat: the Shareholder Association for Research & Education (SHARE) and the Responsible Investment Association (RIA). The initiative is also supported by international investor networks, the Principles for Responsible Investment and Ceres.

“What CEC delivers is a unified vision from Canada’s financial community and support for our businesses in finding competitive advantage in the transitioning economy."

Barbara Zvan

Chair, CEC Steering Committee & CEO, University Pension Plan