TORONTO –The regulators of Canada’s stock markets are taking a fresh look at how publicly traded companies disclose the risks and financial effects associated with climate change.
The Canadian Securities Administrators, which represents the country’s provincial and territorial stock regulators, says it wants to gather information on the current state of disclosure both at home and internationally.
Canadian publicly traded companies are required to disclose material risks, which may include the impact of climate change or other environmental matters.
However, the CSA notes that the Financial Stability Board – which sets voluntary standards on a global scale – proposed a new framework for disclosures in December.
Nicole Tuncay of the Alberta Securities Commission said there have been no substantive changes to disclosure obligations as they relate to climate change since October 2010
CSA staff will consult investors and companies that are required to report important information and report its findings upon completing the review.
“As a securities regulator, we want to ensure investors have the information they need to make informed investment decisions,” Tuncay said in an email.
“Over the coming months, we will be gathering information to help us better assess this, reviewing the climate change-related disclosure of large TSX-listed reporting issuers and gathering feedback from reporting issuers about current disclosure practices.”
Bank of Canada deputy governor Timothy Lane warned earlier this month that the economy and financial system could face “material and pervasive” impacts from climate change.