The Ontario Securities Commission (OSC) has released its Insights on the OSC Staff’s Approach to Sustainable Finance (SF Insights), a report that outlines the regulator's strategy for addressing sustainable finance in the coming years.
The document builds on the OSC's existing work in the area and reflects the priorities set forth in its recently announced strategic plan. The SF Insights emphasizes a “climate-first” approach, aligned with the OSC’s mandate to protect investors and maintain thriving capital markets.
The publication of SF Insights marks a significant step in the OSC’s efforts to enhance transparency and trust in the sustainable finance ecosystem. The OSC aims to support investors and the regulated community in navigating the opportunities and risks that arise from the growing focus on environmental, social, and governance (ESG) factors in finance.
“The OSC is seeking to be responsive to investor and issuer needs in our approach to sustainable finance,” said Grant Vingoe, OSC CEO. “As a capital markets regulator, we remain mindful that we do not set environmental or social policy, and we envision moving forward in a manner that is appropriate for our market.”
The SF Insights is structured around three key pillars:
- Protecting investors and fostering capital markets through effective regulation, compliance oversight, and education.
- Demonstrating thought leadership and establishing the OSC as a trusted and influential voice in the regulation of sustainable finance.
- Anticipating future developments in the rapidly evolving area of sustainable finance.
As ESG-related risks increasingly become mainstream business concerns in Canada and internationally, the OSC’s role as a securities regulator is to ensure that the information investors receive is consistent, comparable, and actionable. “Our goal is to bring useful and reliable data to support investors’ decision-making,” said Jo-Anne Matear, OSC Head of Sustainable Finance.
The OSC’s mandate includes protecting investors from improper practices, promoting fair and efficient capital markets, and contributing to the stability of the financial system. Through its sustainable finance initiatives, the OSC aims to meet these goals while adapting to the changing landscape of climate-related risks and opportunities. The SF Insights publication serves as a guide for the OSC’s continued efforts to balance regulatory oversight with fostering innovation and growth in the Canadian capital markets.