New Developments In The Sustainability Disclosure Landscape

On March 13, 2024, the Canadian Sustainability Standards Board (CSSB) initiated a consultation process on its first Canadian Sustainability Disclosure Standards (CSDS). The CSSB has developed for comment two exposure drafts for disclosure relating to environmental, social and governance (ESG) matters: CSDS 1 – General Requirements for Disclosure of Sustainability-related Financial Information (CSDS 1) and CSDS 2 – Climate-related Disclosures (CSDS 2, and together with CSDS 1, the Proposed Standards).

While the Proposed Standards would remain voluntary once finalized, they may form an important step towards mandatory sustainability- and climate-related disclosure reporting for Canadian public companies. They also come on the heels of the Securities and Exchange Commission's (SEC) adoption, on March 6, 2024, of its final rules (Final Rules) to enhance and standardize climate-related disclosures by publicly traded companies in the United States.