IR Issues Alert - Sustainability Reporting Update

The Canadian Sustainability Standards Board (CSSB) finalized its first two voluntary sustainability reporting standards for Canadian companies (CSDS 1 and CSDS 2) which were published in December 2024. These Canadian disclosure standards are consistent with the international standards set by the International Sustainability Standards Board (ISSB), namely IFRS S1 and S2, however the Canadian implementation dates are later to give companies more time to prepare.

Please see the CSSB’s December 18, 2024 news release to learn more about CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information, and CSDS 2, Climate-related Disclosures, as well as what has changed from the draft standards CSSB had issued for consultation in March 2024.

The Canadian Securities Administrators (CSA)  intends to publish a revised climate-related disclosure rule for public consultation that considers the CSSB standards and may include modifications considered appropriate for the Canadian capital markets, according to its December 18, 2024 news release. Once the final rule for climate-related disclosure has been adopted by the CSA, that disclosure becomes mandatory for Canadian reporting issuers.