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CSSB releases draft sustainability disclosure standards

March 13, 2024

Today, the Canadian Sustainability Standards Board (CSSB) released its proposed Canadian Sustainability Disclosure Standards (CSDS 1 and CSDS 2) for public feedback and encourages responses before June 10.

The CSSB standards were developed to make “Canadian specific” modifications to International Sustainability Standards Board (ISSB) standards released last year, and are part of a global effort to harmonize corporate sustainability reporting and support disclosure regulations.

Canadian Securities Administrators (CSA) today said it will await finalization of the CSSB standards before resuming its development of a Canadian version of disclosure regulations that are already in place in the United States, Europe and elsewhere.

"With the release of the first proposed Canadian Sustainability Disclosure Standards, we’re taking a significant step towards ensuring that sustainability is not just a buzzword but a fundamental aspect of our economic fabric,” says CSSB Chair Charles-Antoine St-Jean in a news release. “Our goal is to empower organizations to not only communicate their sustainability performance effectively but to drive meaningful action towards a more sustainable future for all."

The most significant proposed change from ISSB standards is to extend the timeline for the proposed initial effective date, to Jan. 1 2015, and to extend subsequent transition periods for certain types of disclosures. On Scope 3 disclosures, CSSB is “proposing that the entity is not required to disclose its Scope 3 GHG emissions in the first two annual reporting periods in which an entity applies the standard.” CSSB is also consulting on whether additional transition relief or guidance should be provided for reporting on climate resilience, such as scenario analysis.

For more information about Scope 1, 2 and 3 emissions reporting, check out ISF’s primer article by Simon Martin and Ryan Riordan.

For more information about Climate Risk, Scenario Analysis and Stress Tests, check out our primer article by Simon Martin.