The federal government's recently announced Large Employer Emergency Financing Facility (LEEFF), part of Canada's COVID-19 Economic Response Plan, will require borrowers to publish annual climate-related financial disclosure reports in compliance with the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD). Disclosure will be required to highlight how borrowers' corporate governance, strategies, policies, and practices will:
help manage climate-related risks and opportunities; and
contribute to achieving Canada's commitments under the Paris Agreement and net-zero by 2050 goal.
The TCFD recommends disclosure in four core areas:
Governance. Disclose the organization’s governance around climate-related risks and opportunities.
Strategy. Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.
Risk Management. Disclose how the organization identifies, assesses, and manages climate-related risks.
Metrics and Targets. Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
LEEFF will provide short-term liquidity assistance in the form of interest-bearing term loans to large Canadian employers that have been affected by the COVID-19 outbreak. The program will be available to large Canadian employers that (a) have a significant impact on Canada’s economy (as demonstrated by (i) having significant operations in Canada or (ii) supporting a significant workforce in Canada); (b) can generally demonstrate approximately $300 million or more in annual revenues; and (c) require a minimum loan size of $60 million.
Canada Enterprise Emergency Funding Corporation (CEEFC), a subsidiary of Canada Development Investment Corporation (CDEV), will deliver the program in cooperation with Innovation, Science and Economic Development Canada (ISED) and the Department of Finance.