“You [would] need to do what Europe has done, which is to establish a taxonomy that says ‘These things are green. These things are not green.’ And then you need to establish a calculation methodology,” Fidler said during Demystifying Disclosure: New & Emerging Standards from CSA, CFA & CIFSC.
There would need be one calculation methodology at the issuer level and another at the fund level.
“You have to decide on threshold points – when it goes from light green to green to dark green,” Fidler said. “It sounds great, but there are a lot of challenges in getting agreement [on] what is green and what is not green. There are tons of factors that you can consider. It is just not cut and dry.”
When it comes to disclosure guidelines for responsible investing, Canada has not been “as prescriptive” as the European Union, suggested panelist Fate Saghir, senior vice-president and head of sustainability with Mackenzie Investments.
“It really does leave it up to advisors and investors to decide what is important to them. What is nice about best-in-class investing, from an advisor perspective, is if you are thinking about how you are going to allocate your portfolio, you likely do want broad exposures. You will want exposures to energy,” Saghir said.
During the online event, panelists discussed disclosure guidelines for responsible investing funds released both by CFA Institute and the Canadian Securities Administrators, as well as the Canadian Investment Funds Standards Committee’s (CIFSC) draft framework for identifying responsible investing funds, for which comments are due June 15.
During the panel, an audience member asked whether a fund can be classed as “ESG” if it has no oil or gas holdings but does hold nuclear.
“[Approximately] every 25 years, there is a nuclear catastrophe, so [some investors] are just not comfortable taking that risk,” Saghir said. “For the most part we are very supportive of nuclear. We think it is essential, at this point, for the transition [from fossil fuels] so it is important to look at the nuances and ensure you are aligned with your client’s values.”
Ian Tam, director of investment research with Morningstar Canada, was also a panelist during this session, which was moderated by Melissa Shin, editorial director of Advisor’s Edge and Investment Executive.
Disclosure: Investment Executive was a media partner for the RIA conference.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
