Canadian companies may soon be disclosing their sustainability risks and opportunities under the first Canadian Sustainability Disclosure Standards (CSDS). The Canadian Sustainability Standards Board (CSSB) has released proposed sustainability standards to align with the global standards from the International Sustainability Standards Board (ISSB). Any reporting by Canadian entities under CSDS would be on a voluntary basis; however, legislators and regulators may determine mandatory reporting requirements in the future.
The proposed CSDS
The CSSB proposals include:
- Proposed CSDS 1 General Requirements for Disclosure of Sustainability-related Financial Information
- Proposed CSDS 2 Climate-related Disclosures
- Consultation paper – Proposed Criteria for Modification Framework
The proposed CSDS 1 and 2 adopt the ISSB’s IFRS S1 and S2 with some modifications. The CSDS make changes to the effective date and provide additional transition relief to support Canadian organizations with implementation. The proposed Criteria for Modification Framework details how the CSSB would approach changes to ISSB standards, which would allow for alignment with international standards while addressing issues of potential Canadian public interest.
The consultation period for the proposals will remain open until June 10, 2024. The CSDS are proposed to be effective for annual reporting periods beginning on or after January 1, 2025.
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