Exchange in Focus: TMX Group Releases TCFD-aligned Climate Disclosure Report
20 December 2021
TMX Group recently released its inaugural Task Force on Climate-related Financial Disclosures (TCFD) Report, detailing TMX Group's climate-related risks and opportunities.
A member of the UN SSE since 2019, the TMX Group has been promoting different initiatives to assist the capital market participants to align their activities with a more sustainable development view which includes this recently published climate report.
The TCFD report, which covers TMX Group's financial year ended December 31, 2020, also outlines how the company is actively addressing its carbon footprint while supporting Canada's capital markets' transition to a low-carbon economy.
"This report is an important step in TMX's journey to enhance our climate-related practices and provide more meaningful disclosure to our stakeholders and investors," said John McKenzie, Chief Executive Officer of TMX Group. "At the centre of Canada's capital markets, TMX is committed to helping our listed issuer client base adapt and navigate through a transitioning economy, and to establishing Canada as a world-leading marketplace for sustainable investment and finance."
The report is organized in alignment with TCFD's four core pillars: Governance, Risk Management, Strategy, and Metrics and Targets.
Highlights from the report include:
- TMX Group conducted a climate materiality analysis to identify the climate-related risks and opportunities that could materially impact its strategic and operational objectives.
- TMX Group has committed to achieving carbon neutrality for 2020 and every year going forward. To reach the climate milestone in 2020, the company recently purchased voluntary carbon offsets utilizing TMX Group subsidiary Trayport's Joule™ platform.
- The company launched several initiatives to enhance ESG disclosure by its listed issuers, including a strategic alliance with IHS Markit to provide issuers with access to multi-framework ESG reporting and data distribution repositories.
- TMX Group introduced several products that facilitate ESG investing, including new ESG indices, sustainable ETFs, and ESG derivatives on the Montreal Exchange.
TMX Group has signed on as a supporter of TCFD and believes that the TCFD recommendations provide a useful and consistent framework to increase transparency on climate-related risks and opportunities within financial markets.
Download the full report here.
UN SSE actively supports exchanges on Climate Disclosure
To assist stock exchanges to support all capital market participants through these new advancements and to ensure concurrency both within their market and globally, the SSE has convened a Climate Advisory Group and together developed the SSE’s Model Guidance on Climate Disclosure and the Action Plan to Make Markets Climate Resilient: How stock exchanges can integrate the TCFD recommendations. For further information on what net zero commitments mean for exchanges, download the new SSE Policy Brief on the Net Zero Movement. If your exchange would like to join this new net zero alliance, please contact the SSE secretariat (info@sseinitative.org) and we’ll guide you through the process. The full text for the Commitment to the Net Zero Financial Services Providers Alliance can be found here, including the supplemental text that provides interpretative guidance.About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.
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