How has sustainable investing in Canada weathered the U.S. anti-ESG backlash?

Canadian institutional investors have been global leaders in integrating climate-related financial risk into governance. But that leadership has been tested by the spillover effects of a powerful anti-ESG political movement in the United States.

U.S. asset managers’ revised voting guidelines reduce support for climate-related proposals in Canadian firms they own, while Canadian pension funds face new political risks when using climate-based voting on U.S. holdings. Governance gaps also emerge when Canadian asset owners delegate portfolio management to U.S. managers whose practices no longer align with Canadian fiduciary obligations. Meanwhile, concerns about diverging from the U.S. have influenced the development of Canadian regulations.

Despite these pressures, Canada retains important strengths. Canadian corporate law allows directors to consider material ESG factors and stakeholder interests, providing greater flexibility than the U.S. shareholder primacy model.

Join the Institute for Sustainable Finance and the Canada Climate Law Initiative for this free online session presenting new research into this phenomenon. We’ll explore how Canada has been affected by the U.S. anti-ESG backlash and how investors can remain resilient to political and legal pressures while managing climate risk.

Registration coming soon.