Sustainable Finance Report - Capitalizing on Sustainable Finance: A Growth Opportunity for Toronto's Financial Sector

The global transition to a low-carbon economy is providing an opportunity for financial centres to play a leading role in unlocking the potential of sustainable growth. An estimated investment of US$500 billion per year between now and 2030 will be required in order to keep global warming under 1.5° Celsius. As North America’s second largest financial centre, Toronto is well-positioned to develop and expand expertise and talent in sustainable finance and capitalize on this economic opportunity, according to a new report released today by Toronto Finance International (TFI) in collaboration with Ernst & Young LLP (EY Canada) and Corporate Knights.

The report, Capitalizing on Sustainable Finance: A growth opportunity for Toronto's financial sector, which included interviews with over 70 stakeholders, explores the potential for Toronto, and Canada more broadly, to develop a leadership role in sustainable finance. Financial centres around the world are turning their attention to this opportunity and developing sustainable finance strategies to position themselves for success in the shifting investment landscape. Global green bond issuance has tripled to US$163 billion in the last two years and the total responsible investment market has reached nearly US$23 trillion. A recent report estimates that the annual value of the sustainable finance opportunity for Canada’s financial sector is at least $27 billion and could be as high as $110 billion annually by 2025.

TFI will host a launch event for members in October to provide an overview of the findings and recommendations, and hear from a panel of experts who are active in sustainable finance activities in Canada.