The CSSB has unveiled its pioneering Canadian Sustainability Disclosure Standards (CSDSs), heralding a transformative phase in sustainability reporting.
This pivotal release introduces CSDS 1 and CSDS 2 into the CPA Canada Handbook – Sustainability, marking Canada’s alignment with global reporting norms while tailoring them to the Canadian context.
Bruce Marchand, Interim Chair of the CSSB, highlighted the significance of the standards. “Today’s announcement signifies our commitment to advancing sustainability reporting that aligns with international baseline standards – while reflecting the Canadian context. These standards set the stage for high-quality and consistent sustainability disclosures, essential for informed decision-making and public trust.”
CSDS 1 establishes the general requirements for disclosing material sustainability-related financial information, whereas CSDS 2 is more focused on critical climate-related risks and opportunities. Together, these standards are designed to boost the consistency and comparability of sustainability disclosures amid rising demands for decision-useful sustainability information.
The standards are founded on comprehensive feedback from the exposure drafts and are aligned with the International Financial Reporting Standards (IFRS) S1 and S2, albeit with specified modifications for Canadian nuances. This includes extended transition reliefs for areas like the start date for aligned reporting with financial statements, the quantitative aspects of scenario analysis, and Scope 3 GHG emissions reporting, reflecting the market’s readiness and public interest considerations.
Moreover, the CSSB has committed to a voluntary adoption approach, supporting implementation with resources like an educational webinar slated for January 2025. This initiative is part of a broader multi-year strategic plan aimed at continuous engagement and improvement of sustainability standards in Canada. In a bid to enrich these standards, the CSSB is also focusing on partnerships with First Nations, Métis, and Inuit Peoples, ensuring that Indigenous rights and perspectives are integrated into the sustainability reporting framework.
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