Navigating the currents of ESG expectations: - Survey report on ESG perceptions and

Navigating the currents of ESG expectations: Survey report on ESG perceptions and practices of Canadian Fund Managers November 2023 Navigating the currents of ESG expectations: Survey report on ESG perceptions and practices of Canadian Fund Managers BLG’s Investment Management Group surveyed a range of Canadian fund managers about their administration and disclosure practices for funds that consid. [...] In this Report we highlight our findings about the practices fund managers have adopted in response to rapidly-evolving global ESG standards, taxonomies and data availability, and how they have been responding to the regulatory expectations of the CSA as communicated through the Staff Notice and the comment letters received by firms that were subject to ESG Sweeps. [...] 6 | Navigating the currents of ESG expectations MAJOR THEMES 1 Rapid change The practices of fund managers with ESG Funds are rapidly evolving to keep pace with the change of the CSA’s regulatory expectations, investor expectations and ESG trends. [...] We anticipate an evolution in fund characterization in Canada as the Staff Notice is updated to expressly include the “ESG Consideration Fund” concept to reflect the three types of funds that the CSA have identified in the course of the ESG Sweeps. [...] The OSC “remains focused on promoting adoption of standards and increasing the extent of information disclosure in areas such as climate-related disclosure and corporate diversity.”While external data from providers such as Bloomberg and MSCI are the most common source of ESG metrics, used by 100% of respondents in their investment decision-making process, the growing complexity of reporting, lack.