Canadian Sustainability Standards Board to launch public consultation, advancing adoption of sustainability disclosure standards in Canada

The Canadian Sustainability Standards Board (CSSB) is gearing up for a public consultation to advance the adoption of sustainability disclosure standards in Canada.

This March, the public can comment on three key documents that will shape Canada’s first sustainability standards:

• drafts of proposed Canadian standards on both general requirements for disclosure of sustainability-related financial information and climate-related disclosures; and
• a paper discussing how the CSSB proposes to introduce changes, if required, to IFRS Sustainability Disclosure Standards for use in Canada.

About the upcoming consultation

The International Sustainability Standards Board (ISSB) issued its first standards in June 2023 – IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2, Climate-related Disclosures.

The CSSB will issue proposals on its first standards, Canadian Sustainability Disclosure Standards (CSDS) 1 and 2, in March 2024.

Committed to the global baseline the ISSB established, CSDS 1 and 2 align with IFRS S1 and S2 – but with Canadian-specific modifications suggested. Proposed modifications will include a Canadian-specific effective date and transition relief proposals to help with eventual implementation of the standards.

It is these Canadian-specific modifications that the board will be consulting on between March and June 2024. Individuals and organizations across the country are needed to ensure that adoption of sustainability disclosures standards in Canada work for our market.

How the board works

The CSSB will soon issue documents on its operations and governance approaches. These documents will provide key details about its overarching objectives, its processes – from draft standard to final – and information that guides its decision-making.

Consistent with the approach taken by Canada’s existing financial reporting and auditing standard-setting boards, the CSSB is unwavering in its commitment to transparency, consultation, and accountability.

To uphold these principles, the board aims to:

• Develop Canadian sustainability disclosure standards that support our capital markets, enhancing the reporting of sustainability information by Canadian entities while considering the costs and benefits to preparers and users of such information. Sustainability disclosure standards remain voluntary in Canada, with the CSSB continuing to engage with Canada’s regulatory bodies who determine the mandatory application rules for publicly listed enterprises in the country.
• Explore methods to better include the voices of Indigenous Peoples in the sustainability standard-setting process.
• Conduct its standard-setting activities with transparency, making information about its meetings and plans publicly available.