Item - 2023.EX2.3

 The Executive Committee: 

1. Received the report (January 17, 2023) from the Chief Financial Officer and Treasurer for information.

The City of Toronto created positive impact across key Environment, Social and Governance ("ESG") priorities this year, demonstrating commitment, innovation and transparency, through the performance disclosure and consideration of ESG risks and opportunities in the Environmental, Social and Governance Performance Report ("ESG Report") for 2022 contained in Attachment 1. The objective of the ESG Report is to communicate ESG commitments, define targeted outcomes, and to account for progress towards sustainability, positive socioeconomic outcomes and good governance; demonstrating transparency, accountability, participation, responsiveness, progress measurement and leadership.

Climate action and ESG factors are quickly establishing importance and gaining attention globally in both private and public sectors whereby organizations are measured on how well ESG-related risks and opportunities are handled. Many corporations are now being formally assessed on ESG impact and it is expected that public entities will eventually be required to follow this practice. The ESG Report offers a snapshot of ESG performance and an opportunity to reflect on improvements that can be made to City plans, actions and outcomes to successfully manage ESG risks and opportunities going forward. ESG factors are increasingly being incorporated in the risk assessments of Toronto's credit rating agencies, insurance companies and other investors. As this trend is only expected to grow stronger, it is important to address these factors appropriately and with a sense of urgency.

This report includes key ESG highlights and achievements. Toronto continues to build and implement an integrated ESG approach, with responsible practices embedded across the organization to build a sustainable, transparent and resilient foundation in order to continue developing a government that is transparent, accountable, sustainability responsible, socially conscious, and minimizes ESG risks. This approach ensures progress is established on the commitments made to achieve ESG priorities.