Episode 1: Can sustainability be a driving force for the Canadian economy?
Current environmental challenges have given rise to new ways of thinking and doing business. Sustainability is having a pivotal influence on business practices to meet the needs of today while securing the needs of tomorrow.
In our first episode, we explore what sustainability means in the financial world and how CPAs play a pivotal role in creating a sustainable future.
Davinder Valeri, CPA, CA, director of strategy, risk, and performance with CPA Canada and EY Canada East Leader Anne-Marie Hubert discuss this critical shift in the future of our accounting profession.
Tune in to find out what you can do as a CPA to create a cleaner and more sustainable life for everyone.
In this episode
- how environmental sustainability and accounting are related (00:35)
- how CPAs are playing a pivotal role in creating a better future (02:26)
- how 2020 shifted the financial conversation toward sustainability (02:54)
- the demand for standardization and consistency in climate-related financial disclosure (04:30)
- responsible investment and focus on EGS is growing ($3.2 trillion) (05:55)
- introducing EY's Canada East Leader Anne-Marie Hubert (07:07)
- how investors are leading the change towards a greener future (07:28)
- examples of sustainable financial products and the financial incentive they bring to the table (09:11)
- how the pandemic has accelerated sustainability efforts (10:37)
- why standards are so important (11:35)
- whether standardization measures should remain voluntary (13:57)
- how companies which have a serious impact on the environment can be convinced to release data (15:13)
- why moving too fast toward sustainability can cause crises (the human aspect of transition) (16:53)
- the roadmap to a sustainable future must include these eight things (17:47)
- the challenges of the uncertain future and the role of the CPA (18:06)
- what new CPAs should do to position themselves for success in this new space (20:14)
Key takeaways
- There are a significant number of Canadian EGS funds that are outperforming their non-ESG counterparts. ESG momentum is not slowing down.
- Investors are leading the change when it comes to sustainability efforts. There is an expectation for corporate Canada to step up and do better.
- Green bonds are financial instruments where you get a bond on the basis that you are committing to do better.
- The majority of companies who are large emitters around the world have plans to get to Net Zero by 2050-2060.
- The roadmap to a sustainable future must include: clean electricity production, transmission, storage; clean hydrogen production, transmission, storage; carbon capture and a carbon market.
- Canada must invest in the necessary infrastructures to support the transition to a sustainable future. Coordinated leadership is also necessary. We have the opportunity to be a global winner in this space.
Disclaimer: The views and opinions expressed in this podcast are those of the guest and do not necessarily reflect those of CPA Canada.