This report argues that policy changes are required if investors are to contribute fully to Canada’s long-term environmental and social sustainability. The authors examine the relevant aspects of the Canadian legal and regulatory framework and identify areas where more clarity and guidance are needed. They then recommend reforms that would enable investors to consider sustainability risks and pursue sustainability impact goals, in particular where these are relevant to financial returns. Their proposals include suggested changes to legal duties – due to the complexity of the Canadian legal framework, they make recommendations specific only to pension funds. Other recommendations in this paper apply to all institutional investors.