Canada’s eight largest pension funds, representing $1.6 trillion in assets under management, urged companies and investors to use two sets of standards—from the Sustainability Accounting Standards Board and the Task Force on Climate-related Financial Disclosures—to report risks related to environmental, social and governance factors. (The Logic)

Talking point: Institutional investors around the world are facing pressure from regulators to disclose the risks climate change has on their own portfolios and to make investment decisions that consider those factors. There are currently no standards for how companies report their climate risk—if it’s something they disclose at all—making it hard for investors to accurately gauge risk. In the letter, the CEOs of pension funds, including the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, are not mandating disclosure so much as strongly encouraging it. Eventually, though, companies may not have the choice. Mark Carney, former Bank of Canada governor and now UN special envoy for climate action and finance, plans to have a strategy on mandatory disclosure ready for global regulators to adopt in time for the UN climate summit in November 2021.