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• Canadian pension funds challenge CSSB’s proposed exemptions, advocating for global standards.
• Investors emphasize the importance of uniform sustainability reporting.
• Pension funds warn that exemptions could undermine global alignment and investor confidence.

A coalition of leading 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 consistency and global alignment in sustainability disclosures.

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

• Alberta Investment Management Corporation (AIMCo)
• BCI (British Columbia Investment Management Corporation)
• Caisse de dépôt et placement du Québec (CDPQ)
• Canada Pension Plan Investment Board (CPP Investments)
• Healthcare of 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 emphasizes the necessity of adhering 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 for ensuring transparency and comparability in sustainability reporting,” stated the group. “Exemptions may create disparities and hinder our collective progress towards sustainable investment practices.“

The pension funds highlighted several key points in their letter:

1. Consistency in Reporting: The group insists that the CSSB’s proposed exemptions could lead to inconsistencies in sustainability reporting. They argue that this could result in fragmented data, making it difficult for investors to compare information across different jurisdictions.
2. Investor Confidence: The pension funds warn that allowing exemptions could erode investor confidence. Uniform standards are crucial for providing reliable data that investors depend on for making informed decisions.

“Investors rely on consistent and comparable data to make sound investment choices,” the letter noted. “By adhering to the 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 points out that while exemptions might offer short-term flexibility, they could have detrimental long-term effects on market stability and investor trust.

“Maintaining alignment with global standards is not just about immediate benefits; it’s about securing the long-term health and sustainability of our markets,” the group emphasized.

Related Article: Tim Mohin: ISSB ‘Harmonizes’ Global Sustainability Standards

In summary, the coalition calls on the CSSB to align 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 adherence to these standards is essential for ensuring the transparency, comparability, and reliability of sustainability data, which are critical for informed investment decision-making.

For more details, you can read the full letter here.