As a community of Canadian asset owners, including family offices, foundations, endowments, universities and pension plans, representing approximately CAD $53 billion in assets, we are deeply concerned about the ecological, societal and economic impacts of climate change. These preventable impacts are already here in the form of devastating floods, hurricanes, droughts and wildfires. The Insurance Bureau of Canada reports 2024 as the most expensive year on record, paying out CAD$ 8.55 billion due to severe weather events, including the devastating Jasper wildfires. The total economic losses of the Los Angeles wildfires are estimated at USD$ 250 billion. Scientists are clear that global warming beyond 1.5°C risks cascading tipping points, making the worst effects of climate change irreversible for us and future generations.

Many of our organizations have committed to help solve the climate crisis through philanthropic endeavors, collaboration, and investing in climate solutions. Others recognize the importance of climate change because of the risks an unstable climate poses to the ability to deliver long-term sustainable returns, consistent with fiduciary duty to beneficiaries.

Climate risks are systemic financial risks. Financial institutions play a vital role in safeguarding their clients’ long-term savings and investments, including by managing climate risk and capitalizing on the real-economy transition to net zero. We are concerned that recent high-profile withdrawals by banks and asset managers from global climate finance alliances jeopardizes our collective ability to achieve net zero greenhouse gas emissions by 2050 at a time when more leadership is crucial.

As such, we call on our Canadian financial institutions to remain firmly committed to their net zero goals in accordance with global, science-aligned standards and best practices, and to translate these goals into robust action plans.

Participation in initiatives such as the Net Zero Banking Alliance (NZBA) and the Net Zero Asset Manager initiative (NZAM) signals to asset owners a baseline-level of accountability on net zero-aligned climate ambition and risk management, maintains industry momentum, sets and enhances industry standards and fosters peer learning and collaboration. As asset owners we value consistent reporting through these frameworks, which provides transparency and comparability, measures progress and helps to combat greenwashing concerns.

While we are disappointed by recent exits from NZBA and by NZAM pausing, we ask that our financial partners continue to demonstrate adherence to the inherent principles of these frameworks. In particular, we expect:

Commitments
Banks to continue to commit to transition all operational and attributable GHG emissions from lending and investment portfolios to align with pathways to net zero by 2050 or sooner. Asset managers to work in partnership with asset owner clients to commit to net zero emissions across all assets under management (‘AUM’) by 2050 or sooner and implement engagement, voting and policy advocacy strategies and escalation policies accordingly;
Science-based target-setting
Banks to continue robust, science-based target-setting for 2030, prioritizing the most GHG-intensive sectors and sectors key to the transition to a net zero real economy. Asset managers to continue setting interim AUM-based net zero targets and update at least every five years until 100% of AUM is included;
Annual standardized reporting on progress
Banks to continue annual reporting on progress against absolute and/or emission intensity targets with increased coverage and confidence, and progress made against a board-level reviewed transition strategy with proposed actions and climate-related sectoral policies. Asset managers to continue increasing AUM coverage and report on engagement efforts and results.

We believe Paris-aligned financial net zero transition plans are imperative regardless of country-level targets. As such, we need Canadian financial partners to demonstrate ambition beyond meeting regulatory requirements and commit to climate action that drives real-economy impact, in alignment with fiduciary duties and the long-term investment horizons and goals our organizations pursue. The time for courageous leadership is now.

Signatories:

Advantage Capital Strategies Group

Atkinson Foundation

Bâtirente

British Columbia Teachers' Federation

Canada Post Pension Plan

Catherine Donnelly Foundation

Clearskies Investment Management

CMA Impact Inc.

Coast Funds

Definity Foundation

Echo Foundation

Eclipx Family Office

Fondation du Grand Montréal

Fonds Climat du Grand Montréal

Gosling Foundation

HLB Family Office

Houssian Foundation

Inspirit Foundation

Johansen Larsen Foundation

Laidlaw Foundation

Lester Asset Management – Lynx Global Biodiversity Fund

McConnell Foundation

Ottawa Climate Action Fund

Rally Assets

RE Royalties

Sisters of Mercy Newfoundland

Sitka Foundation

Skagit Environmental Endowment Commission

The Atmospheric Fund

The Halifax Climate Investment, Innovation and Impact (HCi3) Fund

Trottier Family Foundation

United Church of Canada

University of Toronto Asset Management

University of Victoria