The Canadian Sustainability Standards Board (CSSB) has unveiled a pivotal new framework for sustainability reporting with the release of CSDS 1: General Requirements for Disclosure of Sustainability-related Financial Information and CSDS 2: Climate-related Disclosures. These inaugural Canadian Sustainability Disclosure Standards mark a transformative step in enhancing transparency and comparability in sustainability reporting across the nation.
Key Highlights
Where to Access the Standards
CSDS 1 and CSDS 2, along with their accompanying Bases for Conclusions, are now included in the CPA Canada Handbook – Sustainability. In a special initiative, CPA Canada is offering free subscriptions to the Handbook until March 31, 2025.
Supporting Frameworks
To ensure Canadian priorities are reflected, the Criteria for Modification Framework outlines the CSSB’s approach to adapting the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards for Canada.
Voluntary Adoption
For now, these standards are voluntary, unless adopted as mandatory by regulatory authorities or governments.
Transition Relief for Reporting Entities
Acknowledging the challenges of implementing new disclosure requirements, the CSSB has introduced additional transition relief measures to ease the adoption process. Key differences between the final CSDS standards and the IFRS guidelines include:
- Effective Date Extension: One-year deferral of the effective date for CSDS 1 and CSDS 2.
- Phased Reporting Timelines: Transition relief for reporting on sustainability issues beyond climate and Scope 3 greenhouse gas (GHG) emissions, including:
- Two additional years for aligned reporting to begin.
- Three years for quantitative data in scenario analysis (qualitative data is still required).
- An extra year for Scope 3 GHG emissions reporting.
Feedback Shapes the Future
The CSSB’s decision to provide these extended reliefs reflects comprehensive feedback from Canadian stakeholders, who emphasized the importance of aligning with global standards while considering the specific readiness of Canadian entities. This balanced approach aims to support capital markets and the broader public interest.
Looking Ahead
The CSSB remains committed to fostering globally consistent sustainability reporting while addressing Canada’s unique needs. Detailed insights into the modifications and the rationale behind these decisions are available in the CSDS 1 and CSDS 2 Bases for Conclusions, accessible through the CPA Canada Handbook – Sustainability.
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