2025.MM28.37

Background

Toronto’s climate plan TransformTO aims for net-zero by 2040 but overlooks the city’s powerful financial sector. A U of T study found that Bay Street ranks as the 5th largest global climate polluter (behind China, the United States, Russia, and Japan) due to its fossil fuel financing—emitting nearly 100 times more than the City itself. Recently, five major Canadian banks withdrew from the Net-Zero Banking Alliance, raising concerns about accountability. Despite new voluntary climate disclosure standards, stronger action is needed. A proposed Sustainable Finance Hub would help Toronto address climate risks, promote credible climate transition plans, and boost investment in clean energy—similar to initiatives in the UK and Australia.

Source: City of Toronto

Item Description

In March 2025, Toronto City Council adopted a motion to better align the city’s financial sector with its climate goals. The plan includes exploring the creation of a Sustainable Finance Hub with independent experts, free from fossil fuel conflicts, to guide climate-focused investment. Council also directed staff to study best practices from global cities on partnering with the finance sector for climate solutions. Additionally, Council encouraged financial regulators to require credible climate transition plans and disclosures, expressed support for Bill S-243—which promotes climate-aligned financial regulation—and urged Toronto-based financial institutions to reduce fossil fuel financing and increase support for clean energy.

Source: City of Toronto

Proposed by

Councillor Paula Fletcher, seconded by Councillor Dianne Saxe