Environment committee  This includes ensuring that the financial institutions we regulate are managing appropriately the risks that could impact their safety and soundness. Among these are the physical and transition risks associated with climate change. While OSFI does not have an explicit mandate to advance climate change objectives, our current mandate provides us with ample scope to take action to ensure the financial institutions respond to the opportunities and threats of climate change effectively.

Environment committee  Risky fossil fuel investments by our financial institutions are a clear risk to the climate and they are fuelling the climate crisis. Consideration of both the impacts of climate change on our financial institutions and the impacts of financial institutions on climate change is called double materiality. I encourage the committee to explore this concept as part of its study.

Environment committee  Good afternoon, and thank you for the opportunity to address the committee. I'm the program manager for financial research at InfluenceMap, which is a global climate-change think tank conducting research into how corporations and financial institutions are affecting climate change. The past few years have seen a significant growth in companies' recognition of the importance of climate change and the risks it poses.

Environment committee  Thank you very much. My analysis assumes that everything Mr. van Koeverden would say about climate change is true. It accepts the proposition that there is anthropomorphic climate change and that the situation is as has been widely suggested. I'm not suggesting anything to the contrary.

Environment committee  There are two parts to climate change. There's physical risk and there is transition risk. On physical risk, through the insurance industry we have a sense of what the increase in catastrophes and the cost of the catastrophes are as a result of climate change.

Environment committee  This is the second week in a row that Conservatives have brought witnesses to committee who argue against ambitious climate action. Mr. Pardy published an article criticizing the Supreme Court for stating that climate change is an existential threat to Canada. He posted on the platform X that, “Even if you believe in anthropogenic climate change, there is no rationale for this country to have emission reduction targets of any kind.”

Environment committee  Thank you, Chair. My question is for Mr. Routledge. In what ways does climate change impact the financial system that governments are not accounting for?

Environment committee  Are there additional steps that OSFI is considering to improve rules requiring disclosure of risks related to climate change?

Environment committee  It does do risk management and governance, but it also will oblige climate risk disclosures and scenario testing, among other features. Because of the long-term threat of climate change to the sound financial conditions of financial institutions, we put in place B-15. We intend to continue to move the progress of financial institutions forward in managing climate risk as a financial risk and a threat to their sound financial conditions.

Environment committee  I quote, “there is no rationale for Canada to have any emissions reductions targets of any kind.” Here is another quote: “Anthropogenic climate change theory is like a zombie. It won't die no matter the evidence.” Are those your quotes?

Environment committee  Do you believe that climate change is caused by greenhouse gas emissions from human activities?

Environment committee  Gratefully, we have many experts here, so I'll go over to Dr. Ellen Quigley. Dr. Ellen Quigley, do you believe that climate change is caused by greenhouse gas emissions from human activities?

Environment committee  I'm here in a professional setting and, on the contrary, I want the constituents my riding and my nation to have a healthy environment and not see their health affected by climate change, even though that's already happening. That said, my question is for you, Ms. Quigley. Canadians are increasingly concerned about greenwashing, and rightly so. In a November 2023 poll, 78% of Canadians polled—I repeat, 78%—said they were in favour of greenwashing regulations in the financial sector, 76% said they supported their bank's sustainable finance efforts and 65% said they were in favour of their pension fund doing the same thing.

Environment committee  That is the risk the company is in the business to manage. The other risk is the one you want to impose upon them, which is the risk of global climate change. I'm not saying that's not a risk; I'm saying that you're trying to internalize it onto the companies instead of being governmental about it and establishing your own rules about it instead of trying to make them do it for you.

Environment committee  In doing so, we would have a more robust framework in which to understand and prevent the systemic risks from climate change we currently face. Thank you.