• TMX Group introduced the TMX Group Environmental, Social and Governance Report in May/2020

• However, if any environmental or social information is deemed ‘material’, it must be immediately disclosed by a news release as required by the Exchanges’ Timely Disclosure Policies. In addition, securities rules require issuers to disclose all material information including material environmental and social issues. (Source).
• Canadian Environmental Protection Act (1999) requires companies to provide information on specific pollutant emissions for inclusion in the National Pollutant Release Inventory. The act was expanded five years later to include the GHG Emissions Reporting Program, which requires Canadian Large Emitters to report GHG emissions.  Banks and other financial institutions with equity of CDN$1 billion or more are also required (Ban Act, 1991) to publish an annual statement describing their contributions to the Canadian economy and society. (Source).
• The Canadian Securities Administrators requires mining companies to report on reasonably available information on environmental, permitting, and social or community factors as it relates to mineral exploration, development, and production activities on a mineral property that is material to the issuer. TSX includes a reference to this in its listing standards for mineral exploration and development stage mining companies. (Source, Source).

• A Primer for Environmental & Social Disclosure, 2020 (First edition in March 2014)
• TMX entered into a strategic alliance with IHS Markit to endorse their ESG Reporting Repository (the “Repository”). The Repository facilitates the disclosure of issuer ESG information into a variety of frameworks and standards, such as SASB and TCFD, and has extensive distribution channels to disseminate the information to global investors and stakeholders.
• Related information:
  • In 2010, the Canadian Securities Administrators issued CSA Staff Notice 51-333 Environmental Reporting Guidance to help issuers understand reporting requirements for environmental issues. It identifies where requirements exist, explores the concept of materiality and provides specific disclosure examples. While the notice did not specifically address social information, it has been noted that social issues are included since the Annual Information Form and Management’s Discussion and Analysis cover all material issues. (Source)

• Inside the Learning Academy platform, TMX offers training and content related to ESG.
• The webpage ESG 101 shows training designed to offer support for navigating ESG reporting, ratings, and data collection.

• In 2022, TMX provided training on Climate-related Financial Disclosures (TCFD recommendations) in collaboration with the SSE, CDP and IFC. (source)

• S&P/TSX 60 ESG
• S&P/TSX 60 Fossil Fuel Free Carbon Efficient Index
• S&P/TSX 60 Fossil Fuel Free Index
• S&P/TSX Renewable Energy and Clean Technology Index
• S&P Canada LargeMidCap ESG

• The TSX Sustainable Bonds initiative enables investors to access information and transact sustainable bonds with the same ease and transparency that with listed equities. Regulatory approval was received in November 2020, and Sustainable Bonds is available for trading on TSX since March 1, 2021.

• TSX Venture Exchange, since 1999

• Several provinces have a “comply or explain” rule regarding women’s consideration for top management positions in listed companies with self-determined quotas. In 2017 the province of Ontario set a goal of 30% women on board to be reached within three or five years by listed companies. More details here.

• TMX Group has strategically targeted growth- oriented Clean Technology and Renewable Energy companies seeking a market to access North American and global capital. As of March 2018, TSX and TSX Venture Exchange were home to 90 of these companies with a total market cap of over C$40 billion. Source: TSX/TSXV Market Intelligence Group. (Source).
• TMX Group is a member of the following organizations:
  • UN Sustainable Stock Exchange
  • World Federation of Exchanges Sustainability Working Group
  • Responsible Investment Association of Canada

• Listed company for profit; demutualized in 2000

• Ontario Securities Commission – Ontario
• Investment Industry Regulatory Organization of Canada (IIROC) – Ontario
• Autorité des marchés financiers – Quebec

Independent Member Self-Regulatory Organization (SRO) Model

• The two major exchanges that the TMX Group operates are the TSX and the Montreal Exchange. Under Ontario securities rules, the Ontario Securities Commission gives oversight to all financial markets in the province. The TSX has self-regulatory abilities but delegates market surveillance and enforcement to the Investment Industry Regulatory Organization of Canada (IIROC); an independent organization. The TSX only has listing regulatory authority as a result of the delegated powers. This would warrant a ‘Independent Member SRO Model’ classification. The Montreal Exchange operates in Quebec, which is regulated by the Autorité des Marchés Financiers (AMF), an independent but government owned organization. The AMF assists the Montreal Exchange in developing rules and regulations and gives general oversight to the markets but the majority of the regulatory authority lies with the Montreal Exchange itself, making it a Strong Exchange SRO Model.

Location: Toronto, Canada

• TMX Group’s businesses operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. They also provide clearing facilities, data products and other services to the international financial community. (Source).