Inaugural Leadership of Canadian Sustainable Finance Taxonomy Announced

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Business Future Pathways

Apr 08, 2026, 06:00 ET

Establishment of new Taxonomy and Transition Planning Council a major step toward securing Canada's competitiveness in global contest for sustainable capital

OTTAWA, ON, April 8, 2026 /CNW/ - Today, an independent Appointment Committee led by Kathy Bardswick announced the selection of the inaugural chair and members of the new Taxonomy and Transition Planning Council. The Council will oversee the development and approval of a new Canadian sustainable finance taxonomy, establishing evidence-based criteria for "green" and "transition" investments. The Council will also oversee the creation of climate transition planning guidance for Canadian companies. The new Council is committed to engaging and consulting broadly to support the effectiveness and adoption of these new sustainable finance tools. 

"This new Council represents an extraordinary depth of acumen, experience, and expertise," said Bardswick, former Chair of Canada's Sustainable Finance Action Council. "The calibre of leaders who have stepped forward to advance the development of Canadian-made sustainable investment and transition planning guidance speaks volumes about the importance of these initiatives to Canada's future growth and competitiveness."

"To stay competitive and attract investment, Canada needs to send clear signals of our climate-readiness to capital markets," said Marlene Puffer, the inaugural chair of the new Council. "Canada needs credible, internationally-aligned tools--including a sustainable investment taxonomy and transition plan guidance--to mobilize private capital for our companies, communities, and national priorities."

Inaugural Council Members

Background

Mobilizing Investment in Canada's Clean Growth and Transition Priorities

Canada must attract an additional $115 billion per year to secure a thriving economy through the global low-carbon transition. While the pool of sustainability-focused capital continues to grow (projected to reach over US$35 trillion by 2034), Canada faces significant competition for these dollars.

Investors are increasingly factoring climate-related criteria into their capital allocation decisions. A 2025 survey of global asset owners found that 85 per cent view climate risk as a major concern (a significant increase from the previous year). Many of Canada's largest international trading partners and competitors are expanding their sustainable finance toolkits with taxonomies and transition plans to address investors' need for clarity and certainty around climate risk. Canada has lagged behind--a challenge this new Council will help overcome.

Establishing a Canadian Sustainable Finance Taxonomy

A sustainable finance taxonomy creates and defines categories for economic activities that qualify for a "green" or "transition" investment label. The green label broadly applies to low or no-carbon activities that move economies faster toward net zero (e.g. renewable energy projects, electrified transport). "Transition" labeled investments support projects and activities that significantly reduce greenhouse gas emissions in high-emitting sectors. 

The fundamental role of sustainable finance taxonomies is to provide investors with the clarity, certainty, and confidence they need to channel capital into projects and economic activities that have low-carbon benefits. With seed funding provided by the federal government, the new Council will oversee and approve the development of green and transition investment criteria for six priority Canadian sectors by the end of 2027. 

Creating Sector-specific Transition Plan Guidance for Canadian Companies

Corporate climate transition plans are a strategic tool that can help businesses prepare for climate disruption and make the pivots required to stay profitable and competitive through the low carbon transition. They identify the most important risks and opportunities facing a business and give it a clear path for integrating this information directly into its business strategy and financial planning.

The Council will oversee and approve the creation of clear, pragmatic, sector-specific guidance to help companies operationalize and communicate climate transition plans that increase investor confidence and open doors for long-term investment.

Structure and Governance

The independent Council sits at the helm of Business Future Pathways, a finance-driven initiative backed by technical expertise focused on establishing and advancing the foundations for sustainable investment in Canada. The Council provides oversight and makes decisions on taxonomy and transition plan guidance based on evidence and recommendations developed by independent researchers at the Canadian Climate Institute, with input from sector-specific Technical Working Groups. The Council works closely with a Financial Services Advisory Group, Technical Advisory Group, and International Advisory Group to ensure guidance is scientifically credible, practical, and aligned with both Canadian priorities and global frameworks.  

Council Member Appointment Process

The Council was nominated by an arms-length, temporary Appointment Committee including:

For more information, visit: businessfuturepathways.ca

SOURCE Business Future Pathways

Media Requests: Jessie Sitnick, Phone: (204) 674-4905, [email protected]

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Business Future Pathways