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TORONTO, February 12, 2007 – The Canadian Institute of Chartered Accountants (CICA) supports the recommendations for enhanced integration of environmental, social and governance considerations into decision making in Canadian capital markets announced today by the National Round Table on the Environment and the Economy (NRTEE). The NRTEE report encourages the investment community, governments, regulators and corporations to enhance the integration of environmental, social and governance (ESG) factors in capital allocation decisions and the inclusion of material ESG information in corporate financial reporting. Many of the recommendations in the NRTEE report echo views held by CICA, which for more than 15 years has been contributing to and recognizing best practices in the measurement and reporting of corporate performance regarding sustainability.
“It is encouraging to see that the link between the environment and the economy is gaining wider recognition,” says CICA’s President and CEO, Kevin Dancey, FCA. “CICA has been at the forefront of identifying the important role of sustainability in the capital markets. In addition to participating in many international sustainability initiatives, CICA is a founding member of the Global Reporting Initiative (GRI), whose guidelines for reporting on social, environmental and economic aspects of a company’s operations are used around the world.” Since 1991, the CICA has addressed measurement and reporting issues on the environment and sustainability in various research studies and reports. The CICA introduced sustainability reporting as a judging category in the Corporate Reporting Awards in 1993, indicating the importance of transparency about how companies integrate all dimensions of sustainability into their business activities. Recently, CICA published a Discussion Brief, “MD&A Disclosure about the Financial Impact of Climate Change and Other Environmental Issues.” This leading edge work was referenced in the Conference Board of Canada’s “Carbon Disclosure Project Report 2006 Canada 280” and in the “Carbon Disclosure Project Report 2006 Global FT500,” issued by the Carbon Disclosure Project and Innovest Strategic Value Advisors on behalf of 225 investors worldwide, with assets of $31 trillion. The NRTEE report also notes the work of CICA in this important area.
“The CICA’s ongoing leadership in advancing corporate reporting will soon include new research intended to help corporations meet the increasing expectations for transparency in non-financial reporting, including sustainability,” said Dancey. “We encourage all members of the Canadian business, government and investment communities to collaborate in designing and implementing capital market practices better aligned with progress towards a sustainable future for all generations.” The Canadian Institute of Chartered Accountants (CICA), together with the CA institutes/ordre, represents approximately 71,000 CAs and 9,500 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. For more information contact Mi Mi Tsui, manager, communications, 416-204-3435 or mimi.tsui@cica.ca. -30-
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