Environment committee  As global rules unfold, as I said, supply chains increasingly will need to deliver on sustainability—the E, the S, the G. It's already here. Certainly the EU is leading that agenda. I'll use the SME example. There is a key piece of their mindset that we need to think about as we think about policy.

Environment committee  I'm not going to comment specifically on that as it's not my area of expertise, but I think all of us alluded to the idea of clarity, certainty and a level playing field. It is a globally competitive environment for all sizes of firms, and so the idea is that whatever the forward policies are, they do provide all sizes of business with certainty, clarity, transparency—

Environment committee  —and a level playing field that's fit for purpose.

Environment committee  In the earlier question you asked me, we were talking about digital certification, in other words, as distinct and apart from a benchmark. Are benchmarks important? Ultimately, absolutely, because they enable any SME or any company to know how it fares against its competitors. You asked about B Corp and other models.

Environment committee  —and certifications, it depends on the sector and the size of the firm.

Environment committee  Certainty and clarity for the cohort I was talking about earlier, SMEs, are important, as are a level playing field and a fit-for-purpose set of solutions. However, I also referenced that it's more than that: It's also the institutions that govern the policies and the implementation, how we experiment and how we leverage global jurisdictional best practices and bring them here.

Environment committee  I also mentioned digitization and AI. They're huge enablers.

Environment committee  I mentioned the work of an entity called the SME Finance Forum, which is part of the World Bank, as just one of many. It's done some really great work on understanding globally which jurisdictions are ahead and how they've helped key segments of the economy, like SMES, for example.

Environment committee  One of the big opportunities for all governments is looking at what jurisdictional best practices are relating to access to financing. As we talk about transition policy, we look at this huge cohort of SMEs and entrepreneurs who need to think about the global rules bearing down on them, such as supply chain sustainability rules.

Environment committee  One of the jurisdictional lessons learned is that in leading countries, there are opportunities for SME frameworks that can guide SMEs with respect to what they need to report on. Again, these are voluntary. However, if an SME is not part of a supply chain, there are voluntary opportunities.

Environment committee  I think, as I alluded to in my original comments, that when SMEs think about competitiveness, it's often global competitiveness and the linkages to the supply chains in which they operate. I think the way I would really look at this issue is to ask what the road map is for access to financing, access to markets and access to skills and knowledge and an enabling environment, a digitized environment.

Environment committee  There's a whole range of federal government programs and certainly a range of tools that exist. Also, as everyone knows, for SMEs, there are Crown corporations like EDC and BDC that also have a range of programs. The point that I was really raising at the heart of the matter, as we think about transition financing, climate policy and this balanced approach for economy, environment and society, is that SMEs don't get left behind.

Environment committee  Thank you for the question. As I think some of the other panellists mentioned, the global rules for sustainability are bearing down on supply chains. As everyone knows, the EU has tabled its frameworks and models. For SMEs that are part of global supply chains, the idea of disclosures, of sustainable investing and getting ready, is a fait accompli.

Environment committee  Mr. Chair and honourable committee members, thank you for the opportunity to provide additional perspectives regarding the upcoming government study on environment and climate policy impacts related to the Canadian financial system. We all agree that addressing Canada's net zero climate targets will require an economy-wide systems approach that duly expedites action and impact.