Policy | March 14, 2024

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Canadian Regulators Advance Sustainability Disclosure Standards

On March 13, 2024, the Canadian Securities Administrators (CSA) endorsed the Canadian Sustainability Standards Board’s (CSSB) consultation on the inaugural Canadian Sustainability Disclosure Standards 1 and 2 which integrates sustainability into the fabric of Canadian financial reporting setting a new benchmark for responsible investment and corporate governance.

See:  Canada’s Shift to Enhanced Climate Disclosures

• The CSSB’s consultation seeks to gather broad feedback on its first set of sustainability disclosure standards, aiming to refine and enhance these guidelines based on stakeholder input.  For the CSSB standards to become mandatory, they must be incorporated into CSA rules. This process will involve a thorough review and potential modification of the standards to align with the unique needs of the Canadian market.
• The CSA is closely monitoring global developments, including the SEC’s recent approval of climate-related disclosure rules, to ensure Canadian standards are harmonized with international best practices.
• Post-consultation, the CSA plans to propose a revised rule focusing on climate-related disclosures, taking into account the finalized CSSB standards. This proposal will seek public feedback on various aspects, including application scope and compliance support for issuers.

Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission:

“We are pleased to see publication of the CSSB’s consultation on its first set of standards. We’re interested in the feedback the CSSB receives generally and specific to certain questions, as it may help inform revisions to our proposed climate-related disclosure rule. We strongly encourage interested and affected parties to share their views on the proposed CSSB standards.”

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Outlook

With the SEC approving climate-related disclosure rules, Canadian regulators are aligning with global standards, and by addressing the specific needs of Canadian issuers, the CSA and CSSB are transitioning to a more sustainable, transparent, and resilient financial ecosystem.

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