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ARTICLE · 07 JANUARY 2022

Canada Announces Plan For Mandatory Climate Financial Disclosures

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Canadian Prime Minister Justin Trudeau recently announced a plan to compel companies to issue climate-related financial disclosures.

CanadaCorporate/Commercial Law

Canadian Prime Minister Justin Trudeau recently announced a plan to compel companies to issue climate-related financial disclosures.  Specifically, Prime Minister Trudeau sent mandate letters to Deputy Prime Minister and Minister of Finance Chrystia Freeland and Minister of Environment and Climate Change Steven Guilbeaut, which directed them to develop "mandatory climate-related financial disclosures based on the Task Force on Climate-related Financial Disclosures framework."

This policy directive is significant in at least two respects.  First, Canada has now officially embraced a policy that is being implemented or contemplated by many developed Western economies, including the UK, the US, and the EU.  Second, Canada has identified the probable source of the framework for its mandatory disclosures, namely the recommendations produced by the Task Force on Climate-related Financial Disclosures, or TCFD.  (Notably, the TCFD is also the framework that has

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