Environment committee  I think the general approach is that you start with large companies. The emphasis is on scope 1 and scope 2. It's essentially what companies can directly measure. Most of the emissions, usually, are scope 3. For an auto manufacturer, let's say, it's mostly people using their cars who create emissions.

Environment committee  It's very different, because disclosure doesn't require you to do anything. It just requires you to be transparent about your current business. It can also, as in the U.K., be transparency on your capex and how you're investing, which gives you some view on the future. A transition plan is the expectation of how you plan to transition to a future state.

Environment committee  These companies already report. Essentially, as part of their disclosures, they will be expected—this is what's happening in Europe and this is what's coming to Canadian companies that operate in Europe—to do various disclosures as part of being in the financial markets. There is a cost associated with such disclosures.

Environment committee  No. Companies already know how much they spend on disclosures, and there's a whole audit industry built up around financial audit. It's going to depend significantly on the type of company. One of the requirements is.... Someone mentioned that SMEs are an important part of the Canadian economy.

Environment committee  In Europe, it started with 277 large companies, but now it's growing. It's the larger companies to start with. It now includes 1,100 Canadian companies that have to report to Europe, because they operate there.

Environment committee  Yes, in a quick answer, what you described exactly would, I think, be the most logical and efficient way for the private sector to do it.

Environment committee  There are some movements around responsible lobbying. Expectations are being set from some asset owners and others to basically expect that companies do not lobby against certain developments. It is definitely a concern. In terms of the governance of the Canadian oil and gas industry, I don't have too much to comment on.

Environment committee  Coming back to your comments in terms of the bills under consideration, putting expectations on governance in terms of the role and the experience of boards, I think there is certainly some role in regulatory oversight of that. A range of issues are already expected of directors.

Environment committee  This is a very dynamic space. Australia has a resource-intensive economy. It has a lot of coal, yet they have had a renewable energy revolution in just the last couple of years, partially driven by a very well-run pensions industry and a lot of domestic investment but also by securing outside investment.

Environment committee  It's a breakdown based on industry classifications. NACE is one of them. There are some different classification systems, and the taxonomy has to choose which one they use, but they exist. Then, essentially, there is a threshold for each economic activity of what is considered sustainable.

Environment committee  There is a differentiation between physical risks and transition risks. What I'm talking about are transition risks, which include policy change, technological change and consumer change. Any of those can lead—

Environment committee  —to a devaluation of a business model.

Environment committee  To my earlier comment, I think it's about creating the sense of inevitability that this transition is under way and is going to be backed and supported by the government. That's what investors will invest against. As you mentioned, you have world-leading carbon pricing. You have economic leaders in many areas.

Environment committee  Let's take the U.K. In their energy system, 2.3% relies on fossil fuels today. Their largest source of power last year was wind. It bypassed gas. The U.K. economy is similar in some ways. It has a high fossil-fuel sector in terms of gas, yet I think it is outperforming, on a case-by-case basis, the Canadian economy.

Environment committee  We know that in the fossil fuel sector the price of oil is high, so it's very profitable today. The question is, how are they reinvesting those profits? Only a few companies.... The ideal that we would like to see is that they invest with their expertise in the transition. They have a lot of capacity to do that.