This Capital Markets Program (CMP) briefing paper aims to stimulate and focus discussion of how sustainability issues, principles and practices impact (a) investment decision making and risk analysis in capital markets, and (b) the business decisions and practices of Canadian companies. The paper identifies and outlines various topics and themes to inform discussion about and input to the objectives and scope of the CMP. The CMP is a program of the National Round Table on the Environment and Economy (NRTEE).
Sustainability is somewhat of a new frontier for the capital markets, where the risks are high, the responsibilities great and the rewards, potentially enormous. There are now growing opportunities for capital market participants to participate and contribute to sustainable development through lending, insurance and investment activities and through developing benchmarks, indices, standards and reporting regimes. The definition used for “Sustainability” refers to business strategies and processes that add economic, environmental and social value to shareholders, employees and society.