Welcome to a New Era of Sustainability Reporting in Canada
The Canadian Sustainability Standards Board (CSSB) is proud to announce the release of CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information, and CSDS 2, Climate-related Disclosures, Canada’s inaugural sustainability disclosure standards.
These standards represent a significant milestone in promoting consistency and comparability in sustainability reporting.
Key Details
- Where to find them: CSDS 1 and CSDS 2 and their accompanying Bases for Conclusions are now part of the CPA Canada Handbook – Sustainability. Subscriptions to this Handbook are available free of change by CPA Canada until March 31, 2025!
- Supporting resources: The Criteria for Modification Framework outlines how the CSSB will decide to make changes to IFRS Sustainability Disclosure Standards to reflect Canadian priorities.
- Voluntary adoption: These standards are voluntary unless mandated by regulators or governments.
Key Changes from Exposure Drafts – Transition Relief
In comparison to IFRS S1 and IFRS S2, the CSSB proposed in its Exposure Drafts (Proposed CSDS 1 and Proposed CSDS 2) additional transition relief of one year for each of the following:
- The effective date of the standards.
- The start date for reporting on sustainability matters beyond climate.
- The start date for reporting on Scope 3 GHG emissions.
The CSSB decided to maintain such transition reliefs from the Exposure Drafts and to include the following further transitional reliefs when finalizing CSDS 1 and CSDS 2:
- Two additional years of relief for the start of aligned reporting, with such reporting being required within the first six months following the second- and third-year end respectively.
- Three years of relief for only the quantitative aspects of scenario analysis data reporting (not qualitative aspects).
- An additional year of transition relief for Scope 3 GHG emissions reporting.
Review the Summary of Modifications to IFRS S1 and IFRS S2 and Detailed Changes: From Exposure Drafts to Final Standards for more information.
Reasons for Additional Transition Reliefs
The CSSB acknowledges the persuasive feedback on the advantages for Canadian entities and capital markets to align with IFRS S1 and IFRS S2. The CSSB has preserved this global substantive baseline by ensuring all provisions come into effect following the expiration of the provided transition relief.
The CSSB considered the other fulsome and thoughtful feedback from respondents to its Exposure Drafts and the market’s general readiness for sustainability disclosures in concluding that the further modifications, summarized above are in the Canadian public interest.
These modifications are in line with the CSSB’s Criteria for Modification Framework, which was also open for public comment.
More information on our decisions and rationale for these modifications and other provisions can be found in the CSDS 1 and CSDS 2 Bases for Conclusions, available in the CPA Canada Handbook – Sustainability.