Climate Engagement Canada eyes global collaboration
Canadian version of Climate Action 100+ looking to involve global investors as it moves into second year.
Climate Engagement Canada (CEC), a national programme set up to encourage high-emitting firms to promote 1.5°C action plans, is seeking to widen its membership to include global investors that are active in the Canadian market.
Launched in October 2021 as a national version of investor coalition Climate Action 100+, CEC currently has more than 30 Canadian members including asset managers, pension plans, insurers and banks. In total, they control almost CAN$4trn in assets under management.
But two members of CEC’s steering committee – Barb Zvan and Kevin Thomas – have told Net Zero Investor that they are keen to expand the membership to include global investors.
“We focused initially on Canadian members for Climate Engagement Canada – and now we’re looking for like-minded folk in other places with holdings who would be willing to participate,” said Zvan, who is chair of the CEC steering committee and president and CEO of the University Pension Plan Ontario.
CEC could be a model for other countries and regions because it is the first one that is national.
‘Canadian blueprint’ of investor action
Zvan pointed out that of the 167 companies targeted for engagement by Climate Action 100+, only six are Canadian. She said that CEC was thus the “Canadian blueprint” of investor action on climate change. “CEC could be a model for other countries and regions because it is the first one that is national,” Zvan suggested.
“One of the reasons we structured CEC as a Canadian-led initiative is so that the companies we’re working with here know that the investors they’re engaged with understand the Canadian market, added Thomas, who is CEO of the Shareholder Association for Research and Education (SHARE).
“We welcome the participation from global investors because they are active in the Canadian market and they have the right to be at the table.”
CEC was established with the intention of engaging with 40 high-emitting companies listed on the Toronto Stock Exchange. According to a letter from Zvan, published to coincide with CEC’s first anniversary, engagement teams are already working with 25 Canadian companies and preparation work is beginning with a further seven.
The letter states: “Engaging constructively with top emitters is critical for the success of Canada’s transition to a low-carbon economy and the long-term prosperity of Canadian communities as we move toward a net-zero world.”
An April 2022 report from the Institute for Sustainable Finance found that climate change damage could cost Canada up to CAN$2.8trn if global temperatures rise by 2°C.
