Canada’s financial regulator, the Office of the Superintendent of Financial Institutions (OSFI), has announced a three-year delay for banks and insurance companies to report financed and insured emissions under its climate-related financial disclosure framework.
Originally set to begin in 2025 for large institutions and 2026 for smaller firms, Scope 3 emissions reporting will now start in 2028 to align with the new Canadian Sustainability Standards Board (CSSB) standards. Additionally, reporting of off-balance sheet emissions, such as those from capital markets activities, has been pushed to 2029.
Background & Key Changes
OSFI’s initial March 2023 guidelines required federally regulated financial institutions to disclose Scope 1, 2, and 3 greenhouse gas (GHG) emissions, as part of broader governance, strategy, and risk management reporting.
While Scope 1 and 2 operational emissions disclosures remain on track for fiscal 2024, Scope 3 emissions—covering emissions tied to loans and underwriting activities—will now be introduced three years later than initially planned.
Reason for the Delay
OSFI cited the need to align its rules with the CSSB’s newly released Canadian Sustainability Disclosure Standards (CSDSs). The CSSB, largely mirroring the International Sustainability Standards Board (ISSB), extended the reporting relief for Scope 3 emissions to three years—beyond the ISSB’s one-year transition period.
Regulatory Expectations Moving Forward
Despite the delay, OSFI emphasized that financial institutions must continue making progress in measuring and managing their climate-related risks under Guideline B-15. The regulator reaffirmed its commitment to strengthening transparency and risk assessment in Canada’s financial sector.
The decision comes as global regulators ramp up pressure on financial institutions to integrate climate risks into corporate disclosures, reflecting the increasing role of sustainable finance in global markets.
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