This summary of decisions of the Canadian Sustainability Standards Board (CSSB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects, which might change after further deliberations by the CSSB. For more information, please contact Sustainability Standards Staff at [email protected].
In 2023, the CSSB marked its first year of operation. During this time, the Board held four meetings from July to November 2023. In the future, decision summaries will be posted after each meeting.
CSSB Operations
The CSSB began work to develop its inaugural set of guiding principles, structures, and standard-setting due process contained within the following documents:
- Terms of Reference
- Statement of Operating Procedures
- Standard-setting Due Process Manual
These documents require final approval by the Implementation Committee in its transitional oversight role. Approval is expected by March 2024.
The CSSB agreed it would begin work on its inaugural multi-year strategic plan while it undertakes other critical projects during the initial phase of its establishment.
International Sustainability Standards Board’s (ISSB) consultation projects
Request for information on agenda priorities and enhancing the international applicability of Sustainability Accounting Standards Board (SASB) Standards
The CSSB discussed the outreach feedback staff gathered during Canadian market consultation and offered insights to enhance the consultation process. Subsequently, the Board provided feedback on and supported the ISSB’s Agenda Priorities and SASB Standards by the comment deadline.
IFRS Sustainability Disclosure taxonomy
The CSSB discussed the ISSB’s Consultation Paper but decided against providing feedback to the ISSB due to insufficient time for market consultation. The CSSB communicated its decision to the ISSB via its feedback submission portal.
Criteria for modification framework
The CSSB discussed the ISSB’s two inaugural IFRS Sustainability Disclosure Standards:
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information; and
- IFRS S2 Climate-related Disclosures,
as a basis for developing proposed Canadian Sustainability Disclosure Standards (CSDSs):
- CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information; and
- CSDS 2, Climate-related Disclosures.
The CSSB agreed that proposed modifications to IFRS S1 and IFRS S2 would be limited to those that met a set of established criteria.
Accordingly, the CSSB developed a proposed “Criteria for Modification Framework,” outlining cases in which additions to, deletions from, and amendments to IFRS Sustainability Disclosure Standards may be introduced. While acknowledging the benefits of global standardization of sustainability disclosure standards, the Board also recognizes the potential need for modifications in the Canadian public interest.
To ensure transparency in its decision-making process, the CSSB will release a consultation paper for public comment in March 2024, concurrent with the release of exposure drafts for proposed CSDS 1 and CSDS 2.
Development of CSDS 1 and CSDS 2 based on IFRS S1 and IFRS S2
Discussions focused on scoping considerations for CSDS 1, as well as recurrent themes Canadians submitted during the ISSB’s IFRS S1 and IFRS S2 exposure draft consultation. The themes included :
- For CSDS 1, the aligned timing of sustainability-related financial disclosures and the related financial statements.
- For CSDS 2 the nature and timing of disclosures related to Scope 3 greenhouse gas emissions and scenario analysis, which supports investors’ assessment of entities’ climate resiliency.
The CSSB recognized the importance of and obligation to consider the needs and interests of First Nation, Métis, and Inuit Peoples whose rights are inherent and specific in Canada . To create a Canadian framework above the ISSB’s global baseline, the CSSB believes that the methods and means of including and addressing First Nation, Métis, and Inuit Peoples’ rights in sustainability standards must reflect active listening and collaboration with Indigenous Peoples in Canada.
To this end, proposed CSDS 1 and proposed CSDS 2 contain the CSSB’s statement of intent, which asserts its commitment and first steps. The Board is also building an outreach plan focused exclusively on consultation with First Nation, Métis, and Inuit Peoples on the process and strategy of respectful and appropriate engagement.
When it meets in February 2024, the CSSB expects to approve the exposure drafts. The Board will encourage all interested and affected parties to provide feedback on the exposure drafts. Staff will host a webinar on April 13, 2024, to discuss the proposals. Monitor the CSDS 1 and CSDS 2 project page for updates.
Consultation strategy
Recognizing the importance of a robust and inclusive consultation process, the CSSB formed a dedicated subcommittee to develop an outreach strategy for the forthcoming exposure drafts. Given the wide-ranging implications of sustainability disclosure standards across sectors, regions, and interests throughout Canada, the strategy will include outreach efforts aimed at fostering broad and balanced participation in the consultation process.