The Canadian Sustainability Standards Board (CSSB) has unveiled proposed standards for sustainability and climate-related disclosures.
According to ESG Today, this initiative builds on a global push for increased transparency in how businesses report on sustainability risks and opportunities, with the standards drawing from the International Financial Reporting Standards (IFRS) Foundation’s International Sustainability Standards Board (ISSB) disclosure criteria.
The release of these proposed standards is not just a response to growing environmental concerns but also aligns with directives from Canadian Prime Minister Justin Trudeau and subsequent government announcements mandating federally regulated financial institutions to publish climate disclosures. This aligns with the broader Task Force on Climate-related Financial Disclosures (TCFD) framework, now under the ISSB’s purview since its establishment at the COP26 climate conference.
The proposed Canadian standards, namely CSDS 1 and CSDS 2, aim to enhance the quality of information available to investors by aligning with the IFRS’ inaugural sustainability and climate reporting standards, while also incorporating Canadian-specific modifications. These modifications include a deferred effective date to January 1, 2025, and extended reliefs for comprehensive disclosures, including Scope 3 emissions.
Accompanying the release of these standards, the CSSB has initiated a consultation process focusing on the integration of sustainability reporting with financial reporting and the specifics of climate resilience reporting. This consultation is a call to action for organizations to engage in shaping the future of sustainability disclosures in Canada.
CSSB Chair Charles-Antoine St-Jean emphasized the importance of these standards in embedding sustainability into the economic framework of Canada, stating, “With the release of the first proposed Canadian Sustainability Disclosure Standards, we’re taking a significant step towards ensuring that sustainability is not just a buzzword but a fundamental aspect of our economic fabric.”
Further endorsing the initiative, Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission, highlighted the importance of the consultation for refining climate-related disclosure rules and encouraged stakeholders to contribute their perspectives.
This development marks a pivotal moment in Canada’s commitment to a sustainable future, underlining the critical role of standardized, transparent reporting in driving environmental accountability and action.
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