Item - 2021.EX20.3

The Executive Committee received the report (January 11, 2021) from the Chief Financial Officer and Treasurer for information.

The City of Toronto has chosen to take the lead and be the first government in Canada to issue an ESG annual report to reflect its commitment and performance in each of three areas: Environment, Social, and Governance ("ESG"). Being a responsible, engaged and accountable government demonstrates our commitment to long-term sustainability for a vibrant city.

Toronto is Canada’s leading economic engine and one of the world’s most diverse and livable cities. With strong governance, the City proactively leads with a sense of purpose and makes positive impacts across key ESG priorities through commitment, innovation, and transparency. Proper disclosure and consideration of ESG risks and opportunities is critical to demonstrating the City's commitment and accountability. A majority of international and domestic companies are increasingly now being rated on their impact and performance on ESG factors. Moving forward, both private and public organizations will be defined by how they handle ESG-related risks

The objective of ESG reporting is to present important environmental, social and governance topics of interest to a wide range of stakeholders in a format they can use for decision-making. Integration of the United Nation's ESG principles into business decisions is growing on a global scale due to the demand for information and accountability by investors, banks, and key stakeholders such as the insurance sector. ESG risk factors are gaining importance both domestically and internationally and cannot be ignored. 

With the introduction of the ESG report, the City continues to enhance disclosure in line with industry best practices to demonstrate how it continues to deliver services in a way that protects our environment, considers equity and social needs and our social responsibility. The report outlines how the City has prioritized ESG as a critical part of building a sustainable and resilient future.