Canada Introduces Mandatory Climate Disclosures for Banks, Insurance Companies Beginning 2024
The new reporting requirements mark the first step for the country towards a broader set of mandatory climate disclosures.
The federal government’s newly released Budget 2022 directs a move towards a system of reporting based on the Task Force on Climate-related Financial Disclosures (TCFD).
According to Canada’s new budget, Canada’s financial regulator OSFI will require federally regulated financial institutions to publish climate disclosures aligned with the TCFD framework beginning in 2024, stating that it will use a “phased-in” approach for the requirements. Federally regulated entities in Canada include all of the country’s banks, as well as insurance companies, and federally incorporated or registered trust and loan companies, among others.