• Canadian pension funds question CSSB’s proposed exemptions and call for global standards.
• Investors highlight the importance of consistent sustainability reporting.
• Pension funds warn that exemptions could undermine global alignment and investor confidence.

A coalition of major Canadian pension funds has submitted a letter to the Canadian Sustainability Standards Board (CSSB), urging it to reconsider proposed exemptions for sustainability reporting. This initiative underscores the critical need for global consistency and alignment in sustainability disclosures.

The letter is signed by representatives of the following major pension funds:

• Alberta Investment Management Corporation (AIMCo)
• BCI (British Columbia Investment Management Corporation)
• Quebec Deposit and Placement Fund (CDPQ)
• Canada Pension Plan Investment Board (CPP Investments)
• Health Ontario Pension Plan (HOOPP)
• Ontario Municipal Employees Retirement System (OMERS)
• Ontario Teachers’ Pension Plan (OTPP)
• Public Sector Pension Investment Board (PSP Investments)
• University Pension Plan (UPP)

The letter stresses the need to adhere to the global baseline set by the International Sustainability Standards Board (ISSB). Deviating from these standards, the group argues, could undermine investor confidence and global market integrity.

“ The adoption of global standards is vital to ensure transparency and comparability in sustainability reporting, ” the group said. “ Exemptions can create disparities and hinder our collective progress toward sustainable investment practices. ”

The pension funds highlighted several key points in their letter:

1. Consistency in reporting : The group insists that the exemptions proposed by the CSSB could lead to inconsistencies in sustainability reporting. They argue that this could lead to fragmented data, making it difficult for investors to compare information across different jurisdictions.
2. Investor confidence : Pension funds warn that allowing exemptions could erode investor confidence. Uniform rules are crucial to providing reliable data that investors rely on to make informed decisions.

“ Investors rely on consistent and comparable data to make sound investment decisions, ” the letter states. “ By adhering to ISSB guidelines, we can ensure that our markets remain robust and trustworthy. ”

3. Global alignment : The coalition stresses the importance of aligning Canadian sustainability standards with international norms. They believe that exemptions could isolate Canada from the global market, potentially affecting the country’s competitiveness and attractiveness to foreign investors.
4. Long-term impact : The letter notes that while exemptions may provide short-term flexibility, they could have long-term detrimental effects on market stability and investor confidence.

” Maintaining alignment with global standards is not just about immediate benefits; it is about ensuring the long-term health and sustainability of our markets, ” the group stressed.

In short, the coalition calls on the CSSB to align itself with the ISSB’s global baseline, emphasizing that doing so will support the credibility and effectiveness of sustainability reporting in Canada and beyond. They argue that compliance with these standards is essential to ensure the transparency, comparability and reliability of sustainability data, which are critical to informed investment decision-making.

Read more @esgnews