The Canada Climate Law Initiative makes three recommendations to the Standing Committee on Finance in advance of the 2026 federal budget:

• Recommendation 1: Amend Canada Business Corporations Act (CBCA) Regulation SOR/2001-512 to include a new sub-section: “s.72(3). The financial statements shall include a climate transition plan to reach net-zero greenhouse gas emissions no later than 2050, with 5-year targets for emissions reductions towards the net-zero target, including disclosure of Scope 1, 2, and 3 emissions and annual reporting of progress towards meeting targets.”
• Recommendation 2: Make the made-in-Canada sustainable investment guidelines mandatory. The taxonomy is an essential part of Canada’s transition to sustainable finance and should be made mandatory to ensure Canada attracts the private capital it needs to achieve its 2025 net-zero ambitions.
• Recommendation 3: Amend section 7.1 of the Pension Benefits Standards Regulations to require that federally-regulated pension plan (FRPP) administrators, under their current obligations to establish a written statement of investment policies and procedures, adopt transition plans and determine how their climate resilience policies pertain to the plan’s portfolio of investments and loans.