Canadian Sustainability Reporting Software
AI-Native Reporting for CSDS 1, CSDS 2, and Climate-Related Disclosures
EcoActive helps Canadian organizations manage sustainability-related and climate-related reporting within one governed, AI-native platform. Connect reporting requirements, sustainability data, climate risks, GHG emissions, targets, evidence, reviews, approvals, and disclosures without creating a separate reporting process for every framework.
Is Climate Reporting Mandatory in Canada?
Canada’s regulatory position needs to be distinguished from the publication of CSDS 1 and CSDS 2. On April 23, 2025, the Canadian Securities Administrators paused development of its proposed new mandatory climate-related disclosure rule. The CSA also emphasized that existing securities law already requires issuers to disclose material climate-related risks where those risks constitute material information and encouraged issuers to consider voluntary disclosures informed by CSSB standards.
Official source: CSA update on climate-related and diversity-related disclosure projects
- Voluntary adoption
- Investor expectations
- Lender requirements
- Internal reporting policy
- Existing securities-law materiality requirements
- Future regulatory developments
What Are CSDS 1 and CSDS 2?
- CSDS 1 — General Requirements for Disclosure of Sustainability-related Financial Information
- CSDS 2 — Climate-related Disclosures
The standards are based on IFRS S1 and IFRS S2 and provide a Canadian framework for sustainability-related financial reporting. Their effective date is for annual reporting periods beginning on or after January 1, 2025. However, the standards themselves do not create a universal legal reporting obligation for every Canadian company.
Official source: Financial Reporting & Assurance Standards Canada – CSDS 1 and CSDS 2 project
What Does CSDS 1 & CSDS 2 Cover?
CSDS 1
CSDS 1 addresses sustainability-related risks and opportunities that could reasonably be expected to affect an organization’s prospects.
- Governance
- Strategy
- Risk management
- Sustainability-related risks and opportunities
- Metrics and targets
EcoActive’s ESG Disclosure Management software helps teams connect these disclosures with underlying information, evidence, responsibilities, review, and approval.
CSDS 2
- Governance
- Climate strategy
- Physical climate risks
- Transition risks
- Risk management
- Climate resilience
- GHG emissions
- Metrics and targets
- Climate-related opportunities
Organizations assessing resilience can use EcoActive’s Climate Scenario Analysis capability to connect scenarios, assumptions, risks, exposure, evidence, and disclosure.
HOW IT WORKS
Manage CSDS-Aligned Reporting in Seven Steps
1. Establish the Reporting Basis
Determine why the organization is preparing sustainability-related information and which reporting requirements apply. This may involve voluntary CSDS reporting, securities-law requirements, stakeholder expectations, or other reporting commitments.
2. Start With Existing Information
Bring forward annual reports, sustainability disclosures, climate reports, risk registers, policies, GHG inventories, energy records, targets, and supporting evidence. EcoActive enables teams to reuse approved information rather than recreating reporting content each year.
3. Identify Sustainability-Related Risks and Opportunities
Structure relevant risks and opportunities and connect them with governance, strategy, risk management, metrics, targets, supporting data, and evidence.
4. Assess Climate Risks and Resilience
Identify physical and transition risks across operations, assets, geographies, and relevant parts of the value chain.
5. Manage Emissions, Energy, and Value Chain Information
Connect Scope 1, Scope 2, relevant Scope 3 information, energy consumption, energy mix, value chain activities, targets, and evidence.
See Energy Management and Value Chain Management.
6. Validate and Govern Reporting Information
Maintain traceability between reporting requirement, data, calculation, evidence, disclosure, review, and approval.
7. Generate Disclosures and Prepare for the Next Cycle
Bring approved quantitative and narrative information together and retain the underlying reporting structure for future periods.
Why EcoActive for Canadian Sustainability Reporting?
01
CSDS and ISSB-Aligned Reporting
Organize sustainability-related and climate-related information around the reporting concepts used in CSDS and ISSB standards.
02
Climate Scenario Analysis
Connect physical and transition climate risks with scenarios, assumptions, exposure, and resilience.
03
Emissions and Energy Management
Maintain governed Scope 1, Scope 2, Scope 3, and energy information.
04
Value Chain Connectivity
Manage relevant upstream and downstream climate information and supporting evidence.
05
Evidence Traceability
Keep reported information connected to its source, calculation, evidence, and review history.
06
AI-Native Architecture
Use AI across the reporting lifecycle while keeping humans responsible for interpretation and approval.
07
Multi-Jurisdiction Reporting
Reuse common information where appropriate across multiple jurisdictional requirements.
08
Material Information
Determine which sustainability-related risks and opportunities are material for disclosure based on their potential effect on the organization’s prospects.
Frequently Asked Questions About Canadian Sustainability Reporting
Are CSDS 1 and CSDS 2 mandatory?
CSDS 1 and CSDS 2 are Canadian sustainability disclosure standards, but their issuance does not itself make them mandatory for every Canadian organization.
Is the CSA’s proposed climate disclosure rule currently in force?
No. Development of the proposed mandatory CSA climate disclosure rule was paused on April 23, 2025.
Do Canadian companies still need to disclose climate risks?
Canadian reporting issuers remain subject to existing securities-law requirements to disclose material information, which can include material climate-related risks.
What is the difference between CSDS 1 and CSDS 2?
CSDS 1 covers general sustainability-related financial disclosure requirements. CSDS 2 focuses specifically on climate-related information.
Can EcoActive support voluntary CSDS reporting?
Yes. EcoActive can structure CSDS-aligned reporting whether the organization is reporting voluntarily, responding to stakeholder requirements, or preparing for future regulatory developments.
Build a Governed Canadian Sustainability Reporting Process
Connect sustainability information, climate risks, emissions, evidence, review, and reporting within one AI-native platform.
