Item - 2024.EX11.2

The Executive Committee: 

1. Received the report (January 16, 2024) from the Chief Financial Officer and Treasurer for information.

The City of Toronto created positive impact across key Environment, Social, and Governance priorities this year, demonstrating commitment, innovation and transparency, through the performance disclosure and consideration of Environment, Social, and Governance risks and opportunities in the Environmental, Social, and Governance Performance Report ("ESG Report") for 2023 contained in Attachment 1. The objective of the Environment, Social, and Governance Report is to communicate Environment, Social, and Governance commitments, define targeted outcomes, and to account for progress towards sustainability, positive socioeconomic outcomes and good governance, as well as demonstrating transparency, accountability, participation, responsiveness, progress measurement and leadership.

Climate action and Environment, Social, and Governance factors are quickly establishing importance and gaining attention globally in both private and public sectors whereby organizations are measured on how well Environment, Social, and Governance-related risks and opportunities are handled. Many corporations are now being formally assessed on Environment, Social, and Governance impact and public entities will be required to follow this practice. The Environment, Social, and Governance Report offers a snapshot of Environment, Social, and Governance performance and an opportunity to reflect on improvements that can be made to City plans, actions and outcomes to successfully manage Environment, Social, and Governance risks and opportunities going forward. Environment, Social, and Governance 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 Environment, Social, and Governance highlights and achievements. Toronto continues to build and implement an integrated Environment, Social, and Governance 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 Environment, Social, and Governance risks. This approach ensures progress is established on the commitments made to achieve Environment, Social, and Governance priorities.