Canadian Sustainability Standards Board (CSSB) Releases Proposed Sustainability Reporting Standards

The CSSB announced the release of new proposed standards for companies to report sustainability and climate-related information. These standards are based on the sustainability disclosure standards recently released by the IFRS Foundation’s International Sustainability Standards Board (ISSB).

‍

Here are the key highlights:

‍

• Background: the ISSB was launched in November 2021 with the goal of developing IFRS Sustainability Disclosure Standards. Last year, the TCFD's responsibilities were transferred to the ISSB.

‍

• Canadian initiative: The CSSB, formed in 2022 to collaborate with the ISSB, aims to support the uptake of ISSB standards in Canada.

‍

• New proposed standards: The proposed Canadian standards, including CSDS 1 and CSDS 2, align with IFRS S1 and S2, respectively, while introducing Canadian-specific modifications.

‍

• Key changes: Notable changes from the IFRS standards include pushing off the effective date by a year, with implementation starting for reporting periods beginning on or after January 1, 2025. Additionally, certain reliefs for aspects like Scope 3 emissions disclosure are extended.

‍

• Consultation process: The CSSB launched a consultation alongside the proposed standards. Key focus areas for feedback include the alignment of reporting timing, climate resilience reporting requirements, and extended relief proposals.

‍

Canadian securities regulator, the Canadian Securities Administrators (CSA), expressed interest in considering the final CSSB standards for incorporation into a CSA rule under Canadian securities legislation.