Most top Canadian firms don’t verify their sustainability disclosures: PwC

Most large Canadian public firms lack net-zero targets and Indigenous reconciliation action plans, finds a report from PwC Canada.

The international consulting firm analyzed ESG reporting across Canada’s 250 top firms by revenue and market capitalization, assessing such things as net-zero targets, assurance over sustainability disclosures, and diversity and inclusion.

In its second Canadian ESG reporting study, PwC found that 30% of the companies had a net-zero target, 27% of organizations obtained external assurance over select sustainability disclosures, and 23% had a standalone report on Task Force on Climate-related Financial Disclosures, the report said.

“It’s crucial to have a clear plan of action, as the demand for transparency among stakeholders remains an imperative, and investors and supply chains continue to push for ESG initiatives,” Sarah Marsh, PwC Canada’s national ESG report and assurance leader, said in a release.

This year’s report also looked at Indigenous relations and LGBTQ2+ inclusion policies, finding that 38% of firms — up from 27% in 2021— disclosed policies around Indigenous relations, such as training and upskilling programs.

PwC also found that while 56% of companies disclosed a gender diversity policy, only 25% were able to set and report against measurable targets.

The Canadian Securities Administrators (CSA) is reviewing how initiatives on climate reporting standards from the International Sustainability Standards Board and the U.S. Securities and Exchange Commission may affect the CSA’s proposals.

In June, the National Indigenous Economic Strategy — which contains immediate actions the industry can take to support Indigenous prosperity — was released.

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