The Canadian Sustainability Requirements Board (CSSB) introduced the publication of its finalized Canadian Sustainability Disclosure Requirements (CSDSs), largely aligned with the worldwide requirements launched by the IFRS Basis’s Worldwide Sustainability Requirements Board (ISSB), however including extra time for firms to organize for some key components of reporting, equivalent to on worth chain GHG emissions, in comparison with the ISSB requirements.
The discharge of the brand new requirements marks a big step within the multi-year course of in direction of establishing a brand new sustainability reporting system in Canada, starting in 2021, with a directive from Prime Minister Justin Trudeau to cupboard ministers to maneuver in direction of a system of reporting primarily based on the Process Pressure on Local weather-related Monetary Disclosures (TCFD). Most not too long ago, in October, the federal government introduced plans to introduce obligatory climate-related reporting for giant firms, with smaller firms to be inspired to voluntarily present climate-related disclosures.
The CSSB was shaped in 2022 to work with the ISSB, and to help the uptake of ISSB requirements in Canada. The brand new requirements embody CSDS 1, Normal Necessities for Disclosure of Sustainability-related Monetary Data, and CSDS 2, Local weather-related Disclosures, which correspond with the ISSB’s IFRS S1 (sustainability-related) and IFRS S2 (climate-related) requirements, whereas together with modifications “reflecting the Canadian context.”
The CSSB initially launched proposed sustainability and local weather reporting requirements in March 2024, which included a collection of modifications from the ISSB requirements, most notably pushing off the efficient date by a 12 months, and lengthening 1-year reliefs offered by the ISSB for reporting on sustainability issues past local weather and on Scope 3 worth chain emissions to 2 years.
Following suggestions on the draft proposals, the finalized requirements included extra reliefs, together with extending interval earlier than requiring Scope 3 emissions reporting and disclosure on issues past local weather to three years, in addition to two extra years to align the timing of sustainability and monetary reporting, and permitting 3 years for firms to start quantitative climate-related state of affairs evaluation to evaluate local weather resilience.
CSSB Interim Chair Bruce Marchand stated:
“Right this moment’s announcement signifies our dedication to advancing sustainability reporting that aligns with worldwide baseline requirements – whereas reflecting the Canadian context. These requirements set the stage for high-quality and constant sustainability disclosures, important for knowledgeable decision-making and public belief.”
