Canadian climate-focused investor initiative Business Future Pathways (BFP) announced the appointment by an independent committee of the new Taxonomy and Transition Planning Council, assembled to oversee the development and approval of a new Canadian sustainable finance taxonomy, the upcoming categorization system to identify green and transition investments.
In addition to directing the development of the Taxonomy, the new council will also oversee the creation of climate transition planning guidance for Canadian companies.
The launch of the new council follows an announcement by the government of Canada late last year of plans to launch a new sustainable investment taxonomy by the end of 2026, aimed at providing a set of criteria for the identification of investments that are eligible for a “green” or “transition” investment label, enabling companies to issue green or transition bonds, and investors to evaluate the credibility of sustainable investment products.
The government appointed the Canadian Climate Institute (CCI) to lead the development of the Taxonomy, working together with climate-focused investor initiative Business Future Pathways, with the CCI leading research and technical work to inform development of the proposed guideline criteria, and collaborating with the BFP assigned to convene a decision-making council – consisting of representatives from independent experts and academics, the financial sector, climate scientists, Indigenous representatives, and civil society and its financial and technical advisory bodies – as well as financial and technical advisory bodies.
Key members of the new 17-person Council include former AIMCo Chief Investment Officer Marlene Puffer as Chair, and former OSFI Vice Superintendent, Policy Innovation, Stakeholder Affairs, Strategy, Risk & Governance Jamey Hubbs as Vice Chair.
Puffer said:
“To stay competitive and attract investment, Canada needs to send clear signals of our climate-readiness to capital markets. Canada needs credible, internationally-aligned tools—including a sustainable investment taxonomy and transition plan guidance—to mobilize private capital for our companies, communities, and national priorities.”
The new council will oversee and approve the development of green and transition investment criteria for six priority Canadian sectors, with the first three to be finalized this year, according to the government’s timeline, and the next three by the end of 2027.
Additionally, the council will also oversee and approve the creation of clear, pragmatic, sector-specific guidance to help companies operationalize and communicate climate transition plans, aimed at helping businesses to identify the most important climate-related risks and opportunities, and integrating these into business strategy and financial planning.
Kathy Bardswick, former Chair of Canada’s Sustainable Finance Action Council and leader of the Appointment Committee that selected the new council, said:
“The calibre of leaders who have stepped forward to advance the development of Canadian-made sustainable investment and transition planning guidance speaks volumes about the importance of these initiatives to Canada’s future growth and competitiveness.”
