GOVERNANCE

Capital Markets and Sustainability

There is increasing evidence that the sustainability of Canada?s economy may depend on corporations? ability to integrate environmental, social and governance (ESG) factors into their business decisions. There are significant risks associated with not recognizing, measuring or managing such issues, both for individual companies and for industry sectors as a whole.

Yet the majority of publicly traded Canadian corporations have still not integrated sustainability programs, policies, standards, indicators or audited reporting into their normal operating procedures. Institutional investors are partly to blame, because many can still make returns ?the old-fashioned way??a tendency that is amplified when they are (or feel) precluded from even taking ESG factors into account during their assessment process.

The NRTEE studied these issues over a two-year period, convening representatives from the private, public and civil society sectors in a series of 15 meetings and consultations across Canada. It came up with a set of recommendations that will encourage the integration of ESG factors into capital allocation decisions and contribute to a new, stronger vision for investing in Canada?s sustainable future.

This program also looked at the consequences for businesses of not integrating ESG factors into their operations; whether or not the capital markets reward sustainability leaders or punish stragglers; and what can be done to encourage pension funds and companies to increase the integration of ESG factors into their decisions.

Start Date: 2005
End Date: February 2007
Status: Report released

News Release

February 12, 2007 - Capital Markets & Sustainability Reports Points Way to Canada's Long-term Economic Competitiveness and Environmental Sustainability

Meetings and Events

• - February 16, 2005
• Toronto, Ontario - June 17, 2005
• Toronto, Ontario - October 3, 2005