Project Title: Exploring environmental, social & governance (ESG) reporting in the context of BC local government
Client: Climate Action Secretariat (CAS) of BC & Municipal Finance Authority (MFA) of BC
Students: Cait Cameron, Chun Lok Tang, Jiaxin Zhang, Kritika Kukreja, Sanat Kanwar
Faculty Lead: Andrea Reimer
Fieldwork Location: Virtual – British Columbia
Year: 2022-23
About the Project: This research explored Environmental Social and Governance (ESG) reporting within the context of BC municipalities with an emphasis on climate-related risks and opportunities specific to the ‘E’ of ESG. Interviews with local government representatives and subject matter experts working in areas of sustainability, climate and accounting demonstrated the practice of sustainability reporting among local governments and the potential for incorporating ESG reporting. The desk research encompassed identifying good practices in Canada and foreign jurisdictions of ESG and other relevant reporting mechanisms at the municipal level. Further, the project reviewed Canadian legislation and accounting standards concerning asset management, global standards for disaster risk reduction, finance, accounting standards, and other relevant literature.
The two outputs from this project include an ESG primer created for local government staff and representatives as a conversation starter, and a policy brief for the project’s clients which outlines the challenges facing local governments and areas of improvement for prospective ESG reporting by municipalities. Additionally, the brief highlights areas for further inquiry and summarizes relevant climate-related disclosures to inform recommendations about how ESG reporting could be phased-in by local governments on an opt-in basis if such a program were to be pursued by the clients.
Key Words: Climate Change, ESG Reporting, Local Government, Asset Management