Marlene Puffer to Chair New Taxonomy and Transition Planning Council

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Jeffrey Jones of the Globe and Mail reports investors still back green guidebook as Middle East war upends energy markets, taxonomy council chair says: 

War in the Middle East is not swaying institutional investors from pushing for a Canadian guidebook certifying green investments, according to the newly appointed chair of the council charged with putting the document into use.

Marlene Puffer, a veteran pension-fund executive, has been appointed to lead investment and sustainability experts in developing a green and transitionary investing guidebook. The goal of the document is to attract at least $115-billion in capital needed annually for Canada to meet its net-zero targets by 2050.

The government of Prime Minister Mark Carney formalized the process last December by naming a pair of organizations to co-ordinate the development of the document, or taxonomy, which is aimed at ensuring investments meet specific climate objectives and are not merely greenwashing exercises. Since then, the war in Iran has upended the global economy, driving up oil prices and making energy security a top priority.

Even so, investors still want a Canadian taxonomy, Ms. Puffer said in an interview. As many as 60 jurisdictions around the world have implemented taxonomies or are in the process of doing so, she said, despite U.S. President Donald Trump’s administration’s attempts to purge his country’s financial system of environmental, social and governance measures.

“There is still an enormous amount of activity ongoing that is related to making smart investment decisions in the context of the reality of climate change,” Ms. Puffer said.

“The language is shifting a little bit. The geographic approach perhaps is shifting somewhat. But it’s very important that Canada doesn’t lag behind the rest of the world in its movement toward having very clear guidelines and criteria that classify with legitimacy and credibility what constitutes science-based investments that will reduce carbon emissions.”

The taxonomy has been in the works for several years. It will set out sector-specific criteria for determining which investments are certified as green, such as renewable energy, and those that fit into a transitionary category. The latter would involve technology for decarbonizing high-emitting industrial processes.

The new Taxonomy and Transition Planning Council is tasked with developing guidance for three industrial sectors this year and another three in 2027. They have yet to be chosen, Ms. Puffer said.

“This is a proven approach to enhance the credibility of investment in the transition and in green activities and it’s a proven approach to enhancing investment returns. There’s some early evidence that this will also lower the cost of capital,” she said.

Ms. Puffer was previously chief investment officer at Alberta Investment Management Corp., chief executive officer at CN Investment Division and was vice-chair of the board of trustees at the Healthcare of Ontario Pension Plan. She is currently chair of the investment oversight committee at Railpen, the U.K.-based retirement fund.

She will lead a council of prominent sustainability professionals, including Barb Zvan, CEO of University Pension Plan Ontario; Bentley Allan, principal at the Transition Accelerator; Sarah Thompson, global head of sustainable finance at RBC Capital Markets; Simon Donner, professor at the University of British Columbia; among others.

Peter Routledge, Superintendent of Financial Institutions; Yves Ouellet, CEO of Quebec’s Autorité des marchés financiers; and Wendy Berman, chair of the Canadian Sustainability Standards Board, are official observers.

In addition, nearly 60 experts from the institutional investment, academic, regulatory and nongovernmental organization fields are part of financial services and technical advisory groups with the council.

A coalition of environmental advocacy groups, led by Investors for Paris Compliance, said in a recent statement that a taxonomy must incorporate a number of characteristics to be credible: It should be simple, interoperable with others in use around the world, and usable as a first step to other reporting expectations.

The document should uphold Indigenous rights, be consistent with climate science and ensure that transition means a shift away from fossil fuels, not just mitigation, the group said. It should also spell out how it will achieve its objective of doing no significant harm to such things as biodiversity and labour rights.

Initially, use of the taxonomy will be voluntary, but it is being designed with enough incentives to be an attractive tool for investors, Ms. Puffer said.

“This is the missing link that I wish I had had as an investor at the helm of large pension plans, rather than everyone else having to kind of invent their own taxonomy and evaluation criteria,” she said. “Having a clear set of guidelines and criteria helps the entire system work more effectively, more efficiently and with better transparency.”

Earlier today, I read the press release announcing the inaugural leadership of Canadian Sustainable Finance Taxonomy: 

OTTAWA (April 8, 2026) — Today, an independent Appointment Committee led by Kathy Bardswick announced the selection of the inaugural chair and members of the new Taxonomy and Transition Planning Council. The Council will oversee the development and approval of a new Canadian sustainable finance taxonomy, establishing evidence-based criteria for “green” and “transition” investments. The Council will also oversee the creation of climate transition planning guidance for Canadian companies. The new Council is committed to engaging and consulting broadly to support the effectiveness and adoption of these new sustainable finance tools.  

“This new Council represents an extraordinary depth of acumen, experience, and expertise,” said Bardswick, former Chair of Canada’s Sustainable Finance Action Council. “The calibre of leaders who have stepped forward to advance the development of Canadian-made sustainable investment and transition planning guidance speaks volumes about the importance of these initiatives to Canada’s future growth and competitiveness.” 

“To stay competitive and attract investment, Canada needs to send clear signals of our climate-readiness to capital markets,” said Marlene Puffer, the inaugural chair of the new Council. “Canada needs credible, internationally-aligned tools—including a sustainable investment taxonomy and transition plan guidance—to mobilize private capital for our companies, communities, and national priorities.” 

Inaugural Council Members

Media Requests:

Jessie Sitnick

Phone: (204) 674-4905 

communications@businessfuturepathways.ca 


Background

Mobilizing Investment in Canada’s Clean Growth and Transition Priorities


Canada must attract an additional $115 billion per year to secure a thriving economy through the global low-carbon transition. While the pool of sustainability-focused capital continues to grow (projected to reach over US$35 trillion by 2034), Canada faces significant competition for these dollars. 

Investors are increasingly factoring climate-related criteria into their capital allocation decisions. A 2025 survey of global asset owners found that 85 per cent view climate risk as a major concern (a significant increase from the previous year). Many of Canada’s largest international trading partners and competitors are expanding their sustainable finance toolkits with taxonomies and transition plans to address investors’ need for clarity and certainty around climate risk. Canada has lagged behind—a challenge this new Council will help overcome. 


Establishing a Canadian Sustainable Finance Taxonomy


A sustainable finance taxonomy creates and defines categories for economic activities that qualify for a “green” or “transition” investment label. The green label broadly applies to low or no-carbon activities that move economies faster toward net zero (e.g. renewable energy projects, electrified transport). “Transition” labeled investments support projects and activities that significantly reduce greenhouse gas emissions in high-emitting sectors.  

The fundamental role of sustainable finance taxonomies is to provide investors with the clarity, certainty, and confidence they need to channel capital into projects and economic activities that have low-carbon benefits. With seed funding provided by the federal government, the new Council will oversee and approve the development of green and transition investment criteria for six priority Canadian sectors by the end of 2027.  


Creating Sector-specific Transition Plan Guidance for Canadian Companies


Corporate climate transition plans are a strategic tool that can help businesses prepare for climate disruption and make the pivots required to stay profitable and competitive through the low carbon transition. They identify the most important risks and opportunities facing a business and give it a clear path for integrating this information directly into its business strategy and financial planning. 

The Council will oversee and approve the creation of clear, pragmatic, sector-specific guidance to help companies operationalize and communicate climate transition plans that increase investor confidence and open doors for long-term investment.


Structure and Governance


The independent Council sits at the helm of Business Future Pathways, a finance-driven initiative backed by technical expertise focused on establishing and advancing the foundations for sustainable investment in Canada. The Council provides oversight and makes decisions on taxonomy and transition plan guidance based on evidence and recommendations developed by independent researchers at the Canadian Climate Institute, with input from sector-specific Technical Working Groups. The Council works closely with a Financial Services Advisory Group, Technical Advisory Group, and International Advisory Group to ensure guidance is scientifically credible, practical, and aligned with both Canadian priorities and global frameworks.   


Council Member Appointment Process


The Council was nominated by an arms-length, temporary Appointment Committee including:

For more information, visit: businessfuturepathways.ca

Let me begin by congratulating Marlene Puffer for being appointed the chair of the new Taxonomy and Transition Planning Council. 

Marlene is eminently qualified to chair this important council as she was the former CIO at AIMCo and former CEO of CN Investment Division and knows the subject matter well.

She also has some heavy hitters on the council helping her.

Among the ones I know, Barb Zvan, CEO of UPP who will act as Chair of the Financial Sector Advisory Group (FSAG) and Bertrand Millot, head of Sustainability at la Caisse who is a member of the FSAG,

Barb is an internationally recognized leader in sustainable finance who has done incredible work on taxonomy in the field and Bertrand is an incredible leader who has played an integral part in why La Caisse is recognized globally as a sustainable finance leader. 

This new council has a lot of work ahead of it but it's important work and it will help investors, public and private companies, better situate and track their sustainable finance activities and measure them properly.

We desperately need this new taxonomy and a standardized way of looking at this activity because Canada is lagging behind Europe and other areas of the world that have adopted their taxonomy. 

Once in place, it will also help attract international capital to our country and enhance investment returns over the long run.

As noted in the article above:

The taxonomy has been in the works for several years. It will set out sector-specific criteria for determining which investments are certified as green, such as renewable energy, and those that fit into a transitionary category. The latter would involve technology for decarbonizing high-emitting industrial processes.

So they're not flying blind; they're building on previous work and will offer meaningful recommendations.

What about Trump, the war in Iran?  What about them?

Regardless of who is POTUS, this work will continue because this is what international investors are demanding and quite frankly, this is where the world is heading.

It has nothing to do with politics and everything to do with secular trends in investing and how we will meet the demands of the future and adapt to them.

Alright, let me end it there, I know there are other things going on in the Canadian pension world but wanted to cover this properly as it is important. 

Below, despite growing momentum in sustainable finance, significant barriers remain that hinder the full adoption of responsible investment practices. This PRI session featuring Barb Zvan addresses challenges such as regulatory uncertainty, market short-termism, and organizational resistance to change (February 2025). 

Additionally, they examine the politicization of ESG, which has fuelled misunderstandings and contributed to a growing anti-ESG pushback. Investment leaders share insights on overcoming these barriers and advancing responsible investment for long-term value creation.

Great discussion, take the time to watch it, Barb has incredible insights, but so do the other panellists.

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