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ARTICLE · 16 OCTOBER 2019

New Guidance On Material Climate Change Disclosure For Reporting Issuers

Many investors, particularly institutional investors, have become increasingly focused on insufficient disclosure on climate change-related risks.

CanadaCorporate/Commercial Law

On August 1, 2019, the Canadian Securities Administrators (CSA) released CSA Staff Notice 51-358 in efforts to clarify the scope of disclosure for reporting issuers, specifically for smaller issuers. Securities law in Canada requires reporting issuers to disclose material risks affecting their business and, where applicable, the financial impacts of such risks.

While this notice does not produce any new legal ramifications, it is intended to reinforce and expand upon the guidance provided in CSA Staff Notice 51-333 Environmental Reporting Guidance. The driving factor to release this notice was motivated by the following considerations:

  • Increased investor interest. Many investors, particularly institutional investors, have become increasingly focused on insufficient disclosure on climate change-related risks.

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