The rule would require publicly traded companies in
“In terms of readiness, for the majority of these (junior) companies, I wouldn’t be exaggerating to say it's zero," McKenzie said during a panel discussion at an
"They would not have the capacity, capability or resources to take on a standard like this.”
Among the changes under consideration by Canadian securities regulators include potentially requiring issuers to report all of their company's greenhouse gas emissions, including so-called Scope 3 emissions — which means those they produce indirectly, such as when a customer uses their product.
The proposed new rules could also require companies to disclose the risk posed by climate change,both when it comes to physical risk to assets and property due to extreme weather, but also business risk related to the energy transition and potential declining demand for carbon-intensive products.
The Canadian Securities Administrators is essentially seeking to come up with a domestic version of a new international standard for climate disclosure that has been adopted by the
In addition, the
But McKenzie said he hopes the Canadian rules will provide exemptions for small-cap issuers, since their investors tend to be different than the large institutional investors, which are demanding increased climate disclosure anyway.
Even larger companies may need extended time frames to come into compliance with more challenging disclosure requirements, McKenzie said.
The reporting of Scope 3 emissions in particular, McKenzie said, is "very difficult to execute."
The broader conversation about climate disclosure is occurring at the same time that an environmental group has lodged a formal complaint with the
Greenpeace
Suncor's vice-president for sustainability,
But he said Suncor also believes it's important to be upfront with investors about its sustainability progress.
"We have the fundamental belief that our claims have to be backed up by evidence," he said.
He said any Canadian regulation shouldn't try to copy international standards precisely, but rather contain "modifications" that will make it more palatable to Canadian companies.
"Because the concerns we’re hearing (from companies) are significant. These are not minor, but significant concerns," Taylor said.
"And they’re being raised by some of the largest issuers in the
This report by The Canadian Press was first published
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