Thank you, Mr. Chair.

I'd like to begin by acknowledging that I am in Toronto, which is the traditional territory of many nations, including the Mississaugas of the Credit, the Anishinabe, the Chippewa, the Haudenosaunee and the Wendat peoples, and is now home to many diverse first nations, Inuit, and Métis people.

Thank you for the opportunity to speak with committee members today and contribute to your study on environment and climate impacts related to the Canadian financial system.

I am an EY partner who is leading our sustainability work for all levels of government in Canada. I have a public sector experience that includes serving as the City of Toronto's chief financial officer, and as an assistant deputy minister and chief administrative officer in the Province of Ontario. I currently sit on the Canadian Public Sector Accounting Board, and I'm working with the International Public Sector Accounting Standards Board to help develop sustainability standards.

Many see environmental sustainability standards as a compliance exercise or a “nice to have”, but they are a powerful economic tool that is essential to grow Canadian companies and increase our productivity and international competitiveness. Over 20 countries, representing 55% of global GDP, including Canada, have announced timelines for alignment to these standards or are already using them as a basis for their own regulatory frameworks. In addition, the EU corporate sustainability reporting directive is reshaping how companies evaluate the risks and opportunities of environmental, social and governance issues. This impacts both European companies and companies with substantial economic interests in the region.

EY works with financial institutions across the globe to identify the sustainable business opportunities, to consistently and transparently engage with capital markets and to help them transition to the economy of the future.

The private and public sectors must work in lockstep to ensure that regulatory systems are aligned so that we can fully harness the power of this economic opportunity. We know that markets don't like uncertainty, and what we've seen is investors in capital markets driving the need for increased disclosures to help assess risks. We know with certainty that globally recognized and adopted financial standards have created a consistent language that has enabled a global marketplace.

Sustainability standards for both the public and the private sector are needed to create a similar platform that allows comparison of data and information. They provide clarity, help eliminate stakeholder confusion, and decrease uncertainty.

Over the last year, I have been working with some of the world's largest pension funds and asset managers. They are committed to invest in transition projects and seek jurisdictions that are committed to transition investment and sustainability disclosure. They also want the confidence that the investments will drive the intended outcomes. Sustainability standards are already being used by investors and banks to determine access to capital and cost of capital. It's a simple supply-and-demand issue. More capital supply leads to more affordable capital. A smaller access pool means less attractive rates and more expensive costs that put Canadian businesses at a disadvantage.

As jurisdictions around the world adopt sustainability standards more quickly than Canada does, they are demanding transition and risk disclosures. Canadian companies that participate in the disclosures will be more competitive from both a market share and a growth perspective. Companies that do not participate in disclosures run the risk of being unable to participate in supply chains. Canadian companies that export to jurisdictions that are further advanced in the adoption of sustainability disclosures are at risk of becoming ineligible for these business opportunities and losing market share.

In closing, the alignment of public and private sector sustainability standards is essential for the economy. It will increase comparability, decrease uncertainty, and increase access to capital at competitive rates. Sustainability disclosures are essential for the economy and also good for the environment. I recommend that Canada harmonize and adopt both the private and emerging public sector sustainability standards.

Thank you so much for the opportunity to appear today.