Staying informed To remain well-informed on climate issues and emerging trends, our Sustainability and GRM teams provide representation on industry groups and local climate-related programs. Our CFO was a member of the Sustainable Finance Action Council (SFAC) since 2021. SFAC makes recommendations on the critical market infrastructure needed to attract and scale sustainable finance in Canada through disclosure of climate risks and opportunities, better access to climate data and analytics and a standardized climate risk taxonomy within the context of Canada’s capital markets. In March 2023, OSFI published Guideline B-15: Climate Risk Management (B-15), which sets out expectations for federally regulated financial institutions related to the governance and management of climate-related risks. Mandatory climate-related financial disclosures introduced by B-15 are aligned with the TCFD recommendations and our phased adoption supports future compliance with the regulatory guideline. We participated in the comment process related to the draft guideline and we actively monitor regulatory developments in this space. As a small and medium-sized deposit-taking institution (SMSB), as defined by OSFI, we are required to implement B-15 for our fiscal year ending October 31, 2025. As we move forward, we will continue to advance our disclosures as our approach to sustainability matures.
STRATEGY
Climate change-related impacts continue to evolve at a rapid pace, presenting both risks and new opportunities that could impact our strategic and financial performance.
Climate risks and opportunities While we operate our business in an environmentally responsible manner, climate change-related impacts continue to evolve at a rapid pace, presenting both risks and new opportunities. We are exposed to both physical risks related to extreme weather events or chronic impacts of changing weather patterns, as well as transition risks related to the move to a net-zero carbon economy. These risks have the potential to impact our operations and the operations of our clients, disrupt supply chains, cause physical damage and impact the cost of goods and services. At the same time, climate change presents an opportunity to deepen our client relationships as we support them through Canada’s transition to net-zero emissions by offering targeted product and service offerings, advisory services, sustainable financing options and education opportunities.
We are committed to consider climate risks and opportunities within our strategy to manage our climate impact, support the ongoing success of our clients as they strive to achieve their climate goals and mitigate the risks associated with climate change.
Strategic impact of climate risks and opportunities To address these risks and opportunities and the impact they may have on our business, in 2023 we completed a refresh of our comprehensive approach to climate change, aligned to our broader business strategy and the expectations of regulators and other stakeholders. As we progress, our strategy will incorporate short-, medium, and long-term goals targeted to address specific climate-related issues that could have a significant financial impact on our operations, or the operations of our clients. Our Sustainability team is responsible for engaging with internal and external stakeholders to integrate climate considerations into our strategy and operations, providing transparent disclosures as we progress, and ensuring that there is clear organization- wide responsibility for achieving our goals. The Sustainability team’s work is reinforced by the Environmental and Social (E&S) Risk Management function within Risk Management, which is responsible for integrating E&S risks into CWB’s risk management function as appropriate.
60 2023 SUSTAINABILITY REPORT AND PUBLIC ACCOUNTABILITY STATEMENT
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