Researchers at the Institute for Sustainable Finance and Queen’s University have assessed the impact that TCFD-aligned climate reporting has on foreign investment in Canadian companies over the past year.
They found that, after the Trump Administration announced sweeping global tariffs in April 2025, foreign institutional holdings increased by 24.6% more for companies reporting under TCFD compared with those that do not disclose under the framework.
The report reads: “The findings suggest that TCFD-aligned climate disclosure may have helped Canadian firms attract foreign institutional capital, particularly from important European markets, during a period of heightened geopolitical and trade uncertainty.”
“While not conclusive on its own, the study provides additional evidence that strengthening Canada’s sustainability disclosure rules could help support Canada’s efforts to diversify global investment relationships at a time when markets are seeing additional risk in the United States,” it continues.
