McGill’s CIBC Office of Sustainable Finance proposes reforms to address climate change

Canada’s federal and provincial governments have pledged $200 billion to fight climate change—but failed to spend anywhere near that. And corporations often commit to climate initiatives, but there’s no requirement they actually do so. Which is why McGill University’s CIBC Office of Sustainable Finance, an office within the Sustainability Growth Initiative, is proposing a series of transformative reforms for governments and corporations to incentivize environmental and social governance (ESG) and engage in climate change initiatives. The Canadian Income Tax Act should include tax credits and deductions to support ESG and purpose-driven corporations, writes Prof. Peer Zumbansen in The Toronto Star. The Office also proposes universal ESG standards, a mandate for banks to include sustainability in their underwriting policies, and a requirement that corporations have a social purpose statement and implementation mechanisms. Zumbansen argues these reforms will bring about increased competitiveness, innovation, economic prosperity, and a more secure future.