Dear Members of the Advisory Board, Partners, and Friends,
I hope that all of you are having a good summer. So far, 2025 has most certainly proved to be an interesting year, full of surprises both good and bad (personally I am still dealing with the news about Ozzy).
Of course, there has also been much in the news affecting issues of relevance to the Capitals Hub Canada. Probably the most impactful is the election of President Trump and the consequent pull back by the US government and many companies from ideas of sustainability and equity (ESG and DEI have suddenly both become charged terms, and not only in the US). While this is certainly not a welcome development, it also underscores the vital importance of the Capitals Hub and the work that all of us are doing.
The fact that the political winds may not be with us doesn't change the urgent need for continuing action of equity and sustainability in corporate decision-making. To coin a phrase, you may not believe in climate change, but climate change still believes in you. The ongoing environmental, economic and political challenges we are witnessing does not mean that we need to abandon our work. Rather, it means that we have to be smarter in our messaging and more deliberate in our actions, such that we tackle the real issues, and don't just contribute to political polarization.
For that reason, we are pleased to launch the inaugural edition of the Capitals Hub Canada newsletter. We hope to produce a new issue every 2-3 months, and will supplement these publications with social media posts and content on our website. We will begin this edition with updates about the Hub as well as information from a number of our international partners.
In the meantime, I hope that you find this to be of interest, and we welcome any comments and feedback. Happy reading…
"The power of people, when they focus on something positive, never fails to amaze me."
― Ozzy Osbourne, I Am Ozzy
David Steuerman, on behalf of Capital Hub Canada's Board of Directors
We are pleased to share several significant developments from Capitals Hub Canada that underscore our commitment to advancing the comprehensive accounting of value across all capitals.
As we regularize this publication, we would like to solicit ideas from you. Are there stories or innovations that you would like to share with the larger community? We would also invite you to share this newsletter with anyone who you think might be interested, and we would invite them to register for future editions here.
Updates from Capitals Hub Canada: New Partnership, and Global Expansion
Capitals Hub Canada: National Focal Point for UNCBD Global Partnership for Business and Biodiversity (GPBB)
We are proud to announce that Capitals Hub Canada has settled into the role of National Focal Point for the UNCBD Global Partnership for Business and Biodiversity in 2025. This pivotal role strengthens Canada's contribution to global biodiversity conservation efforts by fostering greater engagement between the business community and biodiversity initiatives.
Capitals Hub Canada Joins Business for Nature (BfN)
Furthering our commitment to nature-positive outcomes, Capitals Hub Canada became a member of Business for Nature in 2025. This global coalition is dedicated to catalyzing business action and advocating for policies that reverse nature loss. Our membership signifies a deepened collaboration with leading organizations worldwide, enabling us to amplify the voice of Canadian businesses in the global movement to protect and restore nature.
Recent News
Capitals Coalition announces strategic merger with International Foundation for Valuing Impacts
The Capitals Coalition announced a strategic merger with the International Foundation for Valuing Impacts (IFVI), marking what the organizations describe as a pivotal moment in the evolution of the global impact ecosystem. Integration of the two entities is scheduled for completion by the end of 2025, with teams working to align workstreams, cultures, and personnel. The merger aims to advance impact accounting for value creation and create what CEO Mark Gough called "a powerful vehicle to update the economic operating system and engage regulators, investors and companies to contribute to a resilient economy."
Link: https://capitalscoalition.org/capitals-coalition-and-ifvi-announce-strategic-merger-to-advance-global-impact-accounting/
Forestry companies launch world-first natural capital accounting project with Capitals Coalition and TNFD
The International Sustainable Forestry Coalition announced a groundbreaking sector-wide project on July 14, 2025, bringing together 18 leading forestry companies to pilot test natural capital accounting principles and reporting formats. The participating companies steward more than 24 million hectares across 21 countries and include major players such as Arauco, Forestry England, Stora Enso, Sumitomo Forestry, and Rayonier. The project aims to establish a consistent framework for valuing the vast nature assets and ecosystem services managed by forestry companies, with the goal of attracting greater investment in nature-positive forestry operations ahead of COP30.
Link: https://capitalscoalition.org/wp-content/uploads/2025/07/FINAL-Media-Release-natural-capital-project-FINAL-1.pdf
Coalition launches Global Digital Single Market Data Alliance to advance sustainability infrastructure
The Capitals Coalition's Digital Sustainability Data Project launched a new initiative called the Global Digital Single Market Data Alliance (Global DSMDA) in March 2025. The alliance brings together global and regional experts to build open-source digital infrastructure for automated exchange of financial, sustainability, carbon, and climate-related data. The initiative supports governments in designing digital infrastructure for robust carbon and natural capital markets while connecting companies with open-source reporting tools. The alliance is launching its first regional dialogue in the Western Balkans with support from the Prime Minister of North Macedonia.
Link: https://capitalscoalition.org/a-new-digital-global-alliance-on-the-horizon/
Capitals Coalition launches A-Track Embed Nature business training series for cross-functional decision-making
The Capitals Coalition announced a new series of A-Track Embed Nature sessions running from September 2025 to February 2026, designed to help businesses integrate nature considerations into practical decision-making across multiple business functions. The program targets professionals beyond sustainability teams, including those in risk, operations, procurement, and finance whose decisions intersect with nature-related impacts and dependencies. The training series focuses on two key tracks: location-focused decision-making using spatial datasets and metrics to assess nature-related risks, and putting nature on the balance sheet through embedding natural capital into financial processes and activities. The initiative aims to strengthen business resilience and long-term success by demonstrating how nature integration can support risk reduction and strategic planning across diverse organizational functions.
Link: https://a-track.info/
Coalition continues integrated capitals approach development with regular strategic updates
Throughout 2025, the Capitals Coalition has maintained momentum on advancing the integrated capitals approach through regular strategic updates and publications. Recent communications focus on decision-making frameworks, enabling environments, and economic transformation within the capitals approach. The Coalition continues to work with over 370 leading organizations globally to accelerate the use of capitals thinking in business and policy decision-making, building on its internationally recognized Natural Capital Protocol and Social & Human Capital Protocols.
Link: https://capitalscoalition.org/news-events/
EU sustainability framework under pressure ahead of political negotiations
The foundations of EU sustainability reporting face significant challenges as negotiations over the Omnibus Package advance, with both the European Parliament and Council proposing changes that could substantially weaken the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). The Council has proposed raising CSDDD thresholds to apply only to companies with over 5,000 employees and €1.5 billion turnover, effectively exempting most EU businesses, while Parliament's lead negotiator aims to reduce CSRD requirements and eliminate climate transition plan obligations. Nearly 200 businesses, investors and organizations have signed a joint statement urging EU legislators to uphold core principles, warning that deregulation undermines competitiveness and jeopardizes investor certainty.
Link: https://www.businessfornature.org/news/july-policy-update#eu-sustainability-framework
Deep-sea mining talks stall as tensions rise at international level
International Seabed Authority (ISA) negotiations in Jamaica failed to deliver concrete rules for deep-sea mining regulation, with the Mining Code remaining unfinished as 38 countries warn that finalizing rules without sufficient science risks irreversible damage to marine ecosystems. Complicating matters, deep-sea mining company The Metals Company USA announced intentions to apply for US exploration licenses outside the ISA framework, prompting the ISA Council to launch a formal investigation into potential non-compliance with international law. Despite business opposition, with 67 companies committed to avoiding deep-seabed materials and 40 financial institutions representing $4.3 trillion calling for a moratorium, progress on comprehensive ocean protection remains elusive.
Link: https://www.businessfornature.org/news/july-policy-update#deep-sea-mining
ICJ issues landmark opinion on climate change responsibility
The International Court of Justice unanimously determined that countries have legal obligations under international law to take action on climate change, with judges stating that states must cooperate to achieve concrete emission reduction targets and regulate the climate actions of companies under their jurisdiction. While the advisory opinion is non-binding on states, it carries significant legal and political weight as it's binding on UN bodies, potentially opening pathways for affected countries to seek climate-related compensation and strengthening the legal basis for holding governments and companies accountable to international climate standards.
Link: https://www.businessfornature.org/news/july-policy-update#icj-landmark-opinion
Brazilian "devastation bill" moves one step closer to law, but with key articles vetoed by President
Brazil's controversial environmental legislation, dubbed the "devastation bill," introduces fast-tracked approvals for "strategic" projects while initially allowing up to 80% of companies to self-declare project impacts and bypass comprehensive environmental reviews. However, President Luiz Inácio Lula da Silva vetoed the self-declaration provision and several other key articles in early August, though the Brazilian Congress could potentially overturn these presidential vetoes. This legislation could severely undermine Brazil's ability to protect ecosystems and meet international climate commitments, raising particular concern ahead of COP30 scheduled for the Brazilian Amazon.
Link: https://www.businessfornature.org/news/july-policy-update#brazilian-devastation-bill
CBD and FAO launch regional capacity development programme for ecosystem restoration
The Convention on Biological Diversity (CBD) and the Food and Agriculture Organization of the United Nations (FAO) announced a new regional capacity development support programme on May 22, 2025, aimed at accelerating ecosystem restoration efforts in Africa, Asia, and Latin America. The programme is designed to bolster national efforts in implementing Target 2 of the Kunming-Montreal Global Biodiversity Framework, which calls for restoring 30 percent of all degraded ecosystems by 2030. The initiative will support food security and livelihoods while fostering regional collaboration and integrating indigenous knowledge.
Link: https://www.cbd.int/article/new-regional-capacity-development-support-programme-2025
CBD publishes first guide to Cali Fund for business engagement in biodiversity finance
The CBD Secretariat, in partnership with UNEP and UNDP, published the first comprehensive guide to the Cali Fund on July 4, 2025, aimed at potential contributors and the public. The Cali Fund, adopted at COP16 in Cali, Colombia, is the financial arm of the multilateral mechanism for fair and equitable sharing of benefits from digital sequence information on genetic resources (DSI). The guide targets companies in pharmaceuticals, cosmetics, biotechnology, and other sectors benefiting commercially from DSI, offering them a practical way to demonstrate commitment to biodiversity while contributing to global conservation efforts. At least 50 percent of Fund resources will be allocated to indigenous peoples and local communities as custodians of biodiversity.
Link: https://www.cbd.int/article/Publication-Guide-to-Cali-Fund
CBD Executive Secretary highlights ocean-biodiversity interlinkages at UN Ocean Conference
Executive Secretary Astrid Schomaker participated in the 2025 UN Ocean Conference in Nice, France (June 9-13), emphasizing the complex interlinkages between ocean health, climate change, and biodiversity conservation. During the conference, Schomaker highlighted key targets within the Global Biodiversity Framework, including Target 8 on climate change and ocean acidification, Target 11 on ecosystem functions and services, and Target 19 on resource mobilization. The conference focused on accelerating action to conserve and sustainably use ocean resources in support of Sustainable Development Goal 14.
Link: https://enb.iisd.org/2025-un-ocean-conference-summary
CBD promotes whole-of-society approach for biodiversity implementation on International Day for Biological Diversity
On International Day for Biological Diversity 2025 (May 22), the CBD highlighted the theme "Harmony with nature and sustainable development," emphasizing that achieving the 23 targets of the Kunming-Montreal Global Biodiversity Framework requires a whole-of-society approach beyond government action alone. The initiative calls for meaningful participation from individuals through consumer choices, parliamentarians and local authorities through biodiversity-rich urban planning, and businesses through nature-related risk assessment and disclosure. The CBD specifically encouraged companies making commercial use of digital sequence information on genetic resources to publicly pledge contributions to the newly established Cali Fund, demonstrating leadership in supporting both biodiversity and sustainable development goals.
Link: https://www.cbd.int/article/idb-2025-nudges
G20 Sustainable Finance Working Group prioritizes carbon market data standardization for 2025
Under the South African G20 Presidency, the G20 Sustainable Finance Working Group (SFWG) identified unlocking the financing potential of carbon markets as one of its three priorities for 2025, with specific focus on data standardization. The Climate Data Steering Committee Secretariat, serving as Lead Knowledge Partner, prepared a Technical Consultative Note and draft Common Carbon Credit Data Model to address challenges in carbon market interoperability and transparency. This initiative aims to enhance the reliability and standardization of carbon accounting practices across global markets, supporting the broader goal of mobilizing sustainable finance at scale to achieve the Paris Agreement and 2030 Agenda objectives.
Link: https://g20sfwg.org/
73% of G20 companies now seek third-party sustainability assurance as reporting practices mature
Analysis by the International Federation of Accountants (IFAC) and AICPA & CIMA reveals that 73% of large companies across G20 jurisdictions engaged third parties to assure at least part of their sustainability disclosures in 2023, up from 69% in 2022 and a sharp increase from 51% in 2019. The most commonly assured information continues to be greenhouse gas emissions, often serving as the entry point for companies beginning assurance practices. More than three-quarters of companies now publish ESG information alongside their annual or integrated reports, with the vast majority using their statutory auditor to verify disclosures.
Link: https://www.accountancyage.com/2025/05/16/73-of-g20-companies-now-seek-sustainability-assurance/
International Sustainable Forestry Coalition launches world-first natural capital accounting pilot ahead of COP30
Eighteen leading forestry companies stewarding more than 24 million hectares across 21 countries announced a groundbreaking sector-wide project to pilot test natural capital accounting principles and reporting formats ahead of COP30. The initiative, led by the International Sustainable Forestry Coalition in partnership with the Capitals Coalition and TNFD, represents the first time forestry companies have collaborated at this scale to develop consistent frameworks for valuing ecosystem services and natural capital assets. Participating companies include major players such as Mercer International, Oji Holdings, Stora Enso, PotlatchDeltic, Rayonier, and Sumitomo Forestry, with the project aimed at demonstrating how natural capital can be effectively integrated into corporate balance sheets and decision-making processes.
Link: https://www.industryintel.com/news/international-sustainable-forestry-coalition-leads-18-forest-companies-including-mercer-oji-stora-enso-potlatchdeltic-rayonier-sumitomo-in-natural-capital-accounting-pilot-project-spans-24-million-hectares-across-21-countries-ahead-of-cop30-171835219656
Global Circularity Protocol set to debut at COP30 with new corporate measurement standards
The World Business Council for Sustainable Development announced that the Global Circularity Protocol (GCP) will debut at COP30 in November 2025, offering the first standardized framework for companies to measure and report circular economy activities. Backed by 50 corporations including Philips, Cisco, and Apple, the protocol addresses a critical gap in current sustainability reporting where circular economy practices remain difficult to track under legacy emissions protocols, limiting their visibility in Scope 3 reporting. The GCP aims to provide common language and data standards to help companies integrate circular economy principles throughout existing frameworks including the GHG Protocol, Science-Based Targets initiative, and CDP data reporting systems.
Link: https://trellis.net/article/circularity-business-frameworks-standards-certifications/
Business for Nature emphasizes corporate engagement imperative as COP30 approaches
Business for Nature highlighted that nature is expected to be central to COP30 talks in Belém, positioned as the most cost-effective solution to stabilize the climate with the Amazon rainforest as backdrop. The organization stressed that the stakes for nature at COP30 will be incredibly high, requiring businesses to transcend geopolitics to secure vital finance and collaboration. The update also addressed concerns about potential weakening of critical reporting regulations such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) through the proposed EU Omnibus, emphasizing the importance of maintaining strong government action at national and regional levels to support business climate and nature commitments.
Link: https://www.businessfornature.org/news/encouraging-steps-on-nature-action-despite-turbulent-start-to-2025
UK, Singapore, and Kenya launch carbon credit coalition with COP30 principles release
The UK, Singapore, and Kenya launched a coalition in June 2025 to enhance voluntary carbon credit demand, aimed at providing businesses with clearer guidance on using high-integrity carbon credits. The coalition represents a significant development in international cooperation on carbon market standardization, with participating countries committing to release a comprehensive set of shared principles at COP30 in November. This initiative addresses growing business demand for reliable carbon accounting mechanisms and reflects the increasing integration of carbon markets into corporate sustainability strategies and net-zero commitments.
Link: https://www.lexology.com/library/detail.aspx?g=178f7b2f-0479-4301-b55e-60e4271985b1
We appreciate your continued engagement with Capitals Hub Canada's mission to mainstream capitals thinking across Canadian organizations. Your support enables us to advance comprehensive value accounting that recognizes the interdependencies between financial success and natural, social, and human capital.
Stay Connected: We encourage you to keep an eye on our Capitals Hub Canada LinkedIn page as we will be making individual posts on each of these exciting developments, providing more in-depth information and insights.
