The Visionaries - IR Global



Enhancing business resilience through ESG integration

“While ESG reporting is not mandatory for all Canadian companies, more are voluntarily adopting it.” Isabella Bertani, BERTANI

Isabella Bertani, FCPA, FCA Founder and Chief Client Strategist, BERTANI

I n recent years, concepts of Environmental, Social, and Governmental issues (ESG) and how companies are managing them has gained prominence globally. Canadian organizations are increasingly recognizing the importance of integrating sustainability considerations into their operations and that shareholders are interested in the sustainable initiatives they undertake in order to enable them to better understand how companies are managing the risks, opportunities, and uncertainties around these issues. Along with this, regulators have begun to also recognize the impact ESG has on decision making and as a result, have begun to impose reporting requirements and regulations around these issues, particularly in certain industries. With today’s rapidly changing business landscape, organizations are facing multiple challenges that extend beyond traditional financial metrics. The integration of ESG considerations is emerging as a critical aspect of corporate strategy. ESG Reporting in Canada Although ESG reporting is not universally mandatory in Canada, several developments are shaping the reporting landscape with key regulators the Office of The Superinendent of Financial Reporting (OFSI), the Canadian regulator of financial institutions, and

the Canadian Securities Administrators (CSA), regulator of publicly listed entities moving towards this framework: • Federally Regulated Financial Institutions: Commencing with their 2024 fiscal year, federally regulated financial institutions, including banks and insurance companies, will be required to report on ESG performance, in particular OFSI Guideline B-15 on Climate Risk Management which was put forward in March 2023 with a public reporting deadline of September 2024 for Canada’s largest banks and insurers and September 2025 for all other federally regulated financial institutions.

OFSI has also indicated it would align this disclosure requirement to the IFRS S-2 – Climate related disclosure requirements. This move reflects the growing importance of sustainability metrics in financial decision-making. • Canadian Listed Companies: While ESG reporting is not mandatory for all Canadian companies, increasingly, companies are voluntarily adopting disclosure. However, certain ESG-related provisions apply to Canadian listed companies. For example, in May 2024, first annual reports are due under the Fighting Against Forced Labour and Child Labour in Supply Chains Act,

Isabella Bertani is the Founder and Chief Client Strategist at BERTANI, a boutique audit, tax, and advisory firm located in Toronto, Canada. With over 25 years of experience, Isabella has worked extensively with both private and public companies in numerous industry sectors including manufacturing, food processing, technology, telecommunications, mining and mining-related industries, biotech, and retail and distribution. She has been named by Practice Ignition as one of the Top 50 Women in Accounting globally for two consecutive years in 2021 and 2022. Isabella’s practice focuses on inbound foreign investment and Canadian domestic companies with global interests. A recognised leader in foreign direct investment, Isabella routinely advises global corporations with regards to expansion into the North American market and clients include numerous foreign subsidiaries of significant global entities. Isabella is a frequent speaker on topics relating to globalisation including doing business in Canada, trade agreements, global trade and migration, and the impact of geopolitical trends on global foreign direct investment and global trade. She has a particular interest in FDI and its impact on global sustainability.

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