Sustainable Finance in Ontario: Trends, Tools & the Path Forward

Ontario is at a turning point. Climate risks, housing pressures, and the push for a greener, more inclusive economy are reshaping how money moves – from Bay Street to City Hall.

Sustainable finance is no longer a niche concept; it’s a fast-evolving approach that asks investment decisions to account for environmental and social impact, not just financial returns. At its core, sustainable finance asks a simple but powerful question, as Professor Rui Duan at DeGroote School of Business explains: “What kind of effect are we having on the planet, and how will our stakeholders respond?” This shift is pushing both organizations and investors to rethink their role in the economy.

But the conversation is far from straightforward. Consider just a few of the tensions at play:

Nature-positive vs. nature-negative flows

Even though ecosystems underpin more than half of global GDP, nearly $7 trillion per year is still directed toward activities that degrade nature. The Official Monetary and Financial Institutions Forum (OMFIF) has argued that redirecting finance toward biodiversity, soil health, and pollution prevention is critical for long-term resilience.

Climate leadership and global capital

Canadian institutions are under pressure to show they’re “climate ready”, to disclose climate risks, track ESG performance, and direct capital toward resilient, inclusive solutions – not just to reduce risks at home, but to attract international investment. The Canadian Climate Institute’s Business Future Pathways brings together pension funds, banks, and advocacy groups to set common standards and guidance. 

Adaptation and equity

Financing the transition isn’t only about large infrastructure projects or green bonds. The UN Environment Programme reminds us that communities most vulnerable to climate change are too often excluded from key decisions. This is despite them holding deep and valuable knowledge of their ecosystems. Adaptation finance is an underfunded but critical way to close that gap.

These are global dynamics, but they are also Ontario’s challenges. From the province’s Green Bond Program to Indigenous-led investment models, sustainable finance at home is already shaping how we build, invest, and plan for the future. In order to get there, we will need to have honest conversations about regulation, accountability, and equity.

On October 9, join us in Toronto for Sustainable Finance in Ontario: Trends, Tools & the Path Forward, an expert panel discussion exploring the latest market shifts, regulatory changes, and financing strategies that are setting the stage for Ontario’s transition. Register now.