Sustainability
Permanent URI for this collectionhttps://hdl.handle.net/10315/42602
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Item type: Item , Access status: Open Access , The Impact of Mandatory Human Rights and Environmental Due Diligence (mHREDD) on Canadian Competitiveness(Above Ground, 2026-02-18) Weber, OlafThis report analyzes the impact of mandatory Human Rights and Environmental Due Diligence (mHREDD) on Canadian competitiveness through a systematic review of academic and policy literature. It finds limited direct empirical evidence but identifies key mechanisms shaping competitiveness, including compliance costs, supply-chain restructuring, regulatory fragmentation, and governance design. Evidence suggests no systematic negative effects on firm profitability, while benefits include improved market access, investor confidence, and supply-chain resilience. Impacts are highly design-dependent, with leaders gaining advantages and smaller firms facing higher burdens. Overall, aligning Canada with global mHREDD regimes may enhance its position as a trusted and competitive trading partner.Item type: Item , Access status: Open Access , Long-Term Corporate Bonds, Credit Ratings, and Carbon Emissions: A Canadian Analysis(2026) Malhotra, Gandharv; Weber, OlafThis study examines whether carbon emissions influence the cost of debt in the Canadian corporate bond market. Using a dataset of approximately 5,800 corporate bonds issued between 2000 and 2025, the analysis explores how issuer-level CO₂ emissions, credit ratings, bond maturity, and industry sector affect bond coupon rates, which serve as a proxy for borrowing costs. The study applies ordinary least squares (OLS) regression and ANOVA techniques to evaluate whether higher-emitting firms face higher financing costs or lower credit ratings. The results show that traditional financial risk factors, such as credit ratings and bond maturity, are the strongest determinants of coupon rates. Firms with lower credit quality and bonds with longer maturities consistently exhibit higher coupon rates. In contrast, issuer-level carbon emissions have only a marginal, statistically insignificant effect on borrowing costs once conventional financial variables are controlled for. However, sectoral differences play a significant role. Carbon-intensive industries such as Energy, Industrials, Materials, and Real Estate exhibit significantly higher coupon rates compared to other sectors. This suggests that investors may incorporate environmental risk indirectly through sector-level risk perceptions rather than through firm-specific emissions metrics. When the sector variable is removed from the regression model, the model's explanatory power drops substantially, indicating that industry classification captures a large share of the variation in bond pricing. These findings indicate that, during the sample period, carbon emissions are not yet systematically priced at the firm level in Canadian bond markets. Instead, environmental risk appears to be reflected primarily through traditional credit assessments and broad sector risk characteristics. This may indicate that climate-related financial risks remain partially mispriced or insufficiently differentiated across companies. The results have implications for both policymakers and investors. Policymakers may need to strengthen climate disclosure frameworks and develop standardized reporting requirements to enable investors to better evaluate firm-level environmental risks. For investors, the findings highlight the importance of integrating more granular climate metrics, such as emissions intensity, transition strategies, and exposure to carbon pricing, into credit risk analysis. As climate policies and disclosure standards evolve, financial markets may increasingly incorporate firm-level environmental performance into debt pricing. Overall, the study contributes to the growing literature on sustainable finance by providing evidence that the integration of climate risk into bond pricing remains incomplete, suggesting significant potential for future developments in climate-informed financial markets.Item type: Item , Access status: Open Access , Green Talk, Costly Walk: The Financial Cost of Greenwashing(Wiley, 2026-02-08) Taddeo, Simone; Regoli, Andrea; Weber, Olaf; Carè, RosellaABSTRACT This study investigates the financial consequences of greenwashing, operationalized as the misalignment between ESG disclosure and actual ESG performance. While prior research has explored the reputational and ethical dimensions of greenwashing, its impact on firms' cost of debt remains underexamined. Drawing on a panel of 411 S&P 500 companies over a 10‐year period (2014–2023), we construct two firm‐level indicators of greenwashing, grESG and gr2ESG, based on z‐scores and percentile ranks, respectively. These measures capture the credibility gap between what firms communicate and what they deliver in terms of sustainability. Using random effects within‐between (REWB) models, we decompose structural (between‐firm) and temporal (within‐firm) effects to assess how ESG inconsistency influences debt pricing. Our findings reveal that the between‐firm component of greenwashing is positively and significantly associated with the after‐tax cost of debt, suggesting that financial markets interpret ESG misalignment as a persistent reputational trait rather than a short‐term deviation. The results are robust across alternative specifications, including models that account for ESG‐related controversies. The study contributes to the literature by demonstrating that ESG credibility is a priced financial attribute and that symbolic sustainability efforts, defined as disclosure‐oriented or reputational gestures without substantive operational changes, may backfire in terms of financing costs.Item type: Item , Access status: Open Access , Aggregation of Climate-Related Risk Exposure in Employer-Sponsored 401(k) Plans(2025-12-15) Weber, OlafThis report evaluates the climate-related financial risks embedded within the investment options of a large employer-sponsored 401(k) plan. Using Morningstar/Sustainalytics, Bloomberg, PACTA, Reuters, and fund-level financial data, the analysis identifies significant exposure to high-emitting sectors, limited sustainability alignment, and substantial transparency gaps. While the portfolio is diversified, its concentration in carbon-intensive industries exposes plan participants to elevated transition, regulatory, and stranded-asset risks. Importantly, scenario testing shows that reducing these exposures can be achieved without compromising long-term returns.Item type: Item , Access status: Open Access , From Legitimacy to Leadership: A Comparative Analysis of Environmental, Social, and Governance Reports from the World's Largest Private Equity Firms(University of Toronto Press, 2025-10-28) Mirza, Majid; Sayeed, Farhan; Abbasi, Naeem A; Wilson, Jeff; Weber, OlafL'industrie des capitaux privés, qui dépasse les 14 milliards de dollars d'actifs sous gestion dans le monde, est bien placée pour contribuer aux objectifs de développement durable (ODD) des Nations unies. Les auteurs analysent les rapports environnementaux, sociaux et de gouvernance de 33 entreprises de capitaux privés en 2020, y compris Brookfield Asset Management, la plus grande entreprise de capitaux privés au Canada. Ils examinent les ODD les plus populaires (particulièrement l'ODD-13, l'action climatique), les tendances géographiques et industrielles, les modes d'intégration des ODD et la comparaison entre Brookfield et l'ensemble du groupe. Les résultats ont révélé que les entreprises de capitaux privés ont neuf façons d'intégrer les ODD à leurs processus d'investissement. Brookfield déclare un fort engagement envers l'ODD-13 et souligne régulièrement les facteurs climatiques à une plus grande fréquence que les autres entreprises. Bien que les rapports de certaines entreprises incluent les placements de portefeuille respectueux des ODD, dans bien des cas, rien ne démontre qu'ils ont été retenus de manière intentionnelle avant les investissements. The private equity industry, totaling more than US$14 trillion in assets under management worldwide, is well positioned to make contributions to the United Nations’ Sustainable Development Goals (SDGs). We analyzed environmental, social, and governance reports from 33 top private equity firms in 2020, including the largest private equity firm in Canada, Brookfield Asset Management. We looked at which SDGs were most popular (with a focus on SDG 13, Climate Action), geographic and industry trends, modes of SDG integration, and how Brookfield compared with the overall group. The results show that private equity firms may integrate SDGs into their investment processes in nine ways. Brookfield reports a strong commitment to SDG 13 and consistently mentions climate factors at a greater rate than the other firms. Although the reports of some firms include portfolio investments consistent with the SDGs, there is often little evidence that these were chosen with pre-investment intentionality.Item type: Item , Access status: Open Access , A Comparative Analysis of Sustainable Finance Policies and Practices of Canadian Development Financial Institutions and Multilateral Development Banks(University of Toronto Press, 2025-10-28) Imam, Asher; Weber, OlafLa présente étude est l'analyse comparative d'établissements de financement de développement (ÉFD) canadiens et de banques multilatérales de développement (BMD). Elle se penche sur l'intégration des principes environnementaux, sociaux et de gouvernance (ESG) aux décisions en matière d'investissement et à l'harmonisation des rapports d'impact avec les objectifs de développement durable. Elle inclut une analyse de contenu détaillée des rapports de durabilité, des rapports annuels ou des rapports d'ESG de quelques établissements entre l'exercice 2021 et l'exercice 2023, et met en lumière les différences thématiques distinctes à l'aide d'une approche à méthodologie mixte. Les ÉFD canadiens priorisent l'inclusion sociale, l'équité des genres et le développement économique des Autochtones, tandis que les BMD s'attardent davantage au risque climatique, à la biodiversité et au financement vert. Même si ces deux groupes font des efforts collectifs démontrés envers la durabilité, les ÉFD canadiens traînent toujours de la patte pour ce qui est de thèmes comme les déclarations d'émissions de type 3 (chaine de valeur), le financement de la biodiversité et les mesures d'impact. Les résultats font ressortir deux possibilités clés pour les ÉFD canadiens : a) faire progresser l'intégration des ESG par l'adoption des pratiques exemplaires internationales, y compris des cadres de transition justes, des mécanismes de plaintes et des tableaux d'impact et b) améliorer les rapports en matière de durabilité par des cadres standardisés comme le Global Reporting Initiative et le groupe de travail sur les divulgations financières liées au climat. This study conducts a comparative analysis of Canadian development finance institutions (DFIs) and international multilateral development banks (MDBs). It examines the integration of environmental, social, and governance (ESG) principles into investment decisions and the alignment of impact reporting with the Sustainable Development Goals. The study conducts a detailed content analysis of the sustainability, annual, or ESG reports of selected institutions from fiscal year 2021 to fiscal year 2023, highlighting distinct thematic differences using a mixed-methods approach. Canadian DFIs prioritize social inclusion, gender equity, and Indigenous economic development, whereas MDBs focus more on climate risk, biodiversity, and green finance. Although both demonstrate collective efforts toward sustainability, Canadian DFIs are still behind on themes such as Scope 3 emissions (value-chain) disclosure, biodiversity finance, and impact measurement. The findings identify two key opportunities for Canadian DFIs: (a) to advance ESG integration by adopting international best practices, including just transition frameworks, grievance mechanisms, and impact dashboards, and (b) to improve sustainability reporting via standardized frameworks such as the Global Reporting Initiative and Task Force on Climate-Related Financial Disclosures.Item type: Item , Access status: Open Access , Sustainable Finance and Climate Change: An Introduction to the Special Issue(University of Toronto Press, 2025-10-28) Weber, OlafCe numéro spécial, élaboré en collaboration avec le Global Risk Institute (GRI), examine comment le financement durable et climatique peut soutenir la transition vers une économie à faibles émissions de carbone au Canada, notamment en ce qui concerne la préparation du secteur public, la divulgation d'informations, l'intégration du secteur financier et les voies sectorielles. Les conclusions soulignent des améliorations pratiques : des données climatiques plus cohérentes et transparentes, un suivi plus rigoureux des programmes publics et une utilisation plus large d'outils prospectifs (par exemple, plans de transition, analyse de scénarios). Les données du marché suggèrent que les entreprises « vertes » canadiennes ont tendance à obtenir de meilleurs résultats et à afficher une volatilité moindre pendant les périodes de risque climatique accru. Des analyses comparatives mettent en évidence les différences entre les juridictions et les possibilités d'aligner la politique du secteur financier sur les objectifs nationaux. Les recherches sectorielles sur le transport maritime proposent une approche par étapes, comprenant l'efficacité à court terme, les carburants de transition à mesure que les infrastructures se développent et les technologies zéro carbone à plus long terme. Dans l'ensemble, les priorités comprennent la normalisation des données utiles à la prise de décision, l'expansion des outils prospectifs, l'amélioration de la cohérence entre les politiques et les finances, et l'examen de mesures incitatives visant à mobiliser les capitaux publics et privés en faveur de résultats de transition mesurables. This special issue, developed with the Global Risk Institute (GRI), examines how sustainable and climate finance can support Canada's low-carbon transition across public sector readiness, disclosure, financial sector integration, and sector pathways. Findings point to practical improvements: more consistent, transparent climate data; stronger monitoring of public programs; and broader use of forward-looking tools (e.g., transition plans, scenario analysis). Market evidence suggests Canadian “green” firms tend to outperform and exhibit lower volatility during periods of heightened climate-policy risk. Comparative analyses highlight jurisdictional differences and opportunities to align financial sector policy with national objectives. Sector research on maritime transport proposes a phased approach—including near-term efficiency, transitional fuels as infrastructure scales, and longer-horizon zero-carbon technologies. Overall, priorities include standardizing decision-useful data, expanding forward-looking tools, improving policy–finance coherence, and considering incentives to mobilize public and private capital toward measurable transition outcomes.Item type: Item , Access status: Open Access , An investigation of campuses’ sustainability practices in Nigerian higher education institutions(Emerald, 2025-09-04) Jimoh, Ibrahim Bamidele; Clarke, Amelia; ElAlfy, Amr; Weber, OlafPurpose This study aims to dive into the unique context of Nigerian universities, exploring their roles in terms of campus sustainability practices and the challenges they face while implementing sustainability initiatives. Design/methodology/approach This study investigates sustainability practices through in-depth interviews with higher education institutions (HEIs) in developing countries. Experts from eight different government-owned universities in the Southwestern region of Nigeria participated in this study through a purposive sampling technique. The study leveraged the Sustainability Tracking and Rating System framework to determine potential sustainability management indicators tailored to the Nigerian context. Findings The findings reveal a limited degree of engagement and implementation and show that HEIs adopt a wide range of sustainability approaches. Hence, underlying the necessity for concerted efforts to enhance sustainability initiatives in Nigerian HEIs. Originality/value To the best of the authors’ knowledge, no previous studies have investigated Campuses’ Sustainability Practices in Nigerian HEIs. This study contributes to the body of literature by clarifying the challenges faced by Nigerian HEIs as their comprehension of sustainability practices widens, which has gotten little attention in previous literature.