• The new standards assist Canadian organisations in aligning their sustainability reporting with international guidelines.
• These standards are currently voluntary but may become mandatory in the future.

The Canadian Sustainability Standards Board (CSSB) has released its first Canadian Sustainability Disclosure Standards (CSDSs) to help Canadian companies improve their sustainability and ESG reporting.

CSSB's new standards make sustainability reporting clearer, more consistent, and easier to compare, particularly as global demand for environmental and financial information grows.

What is CSDS 1?

These are guidelines for what sustainability-related financial information companies must report or disclose. This includes providing information on what is material, meaning the information that impacts financial decisions.

What is CSDS 2?

Organisations need to report material information related to climate risks and opportunities. This means how a business is affected by climate change and the measures it takes to address it.

These standards help Canadian companies align their reporting with global sustainability reporting guidelines. Also, they have taken Canada's specific needs into account by introducing modifications to make the process easier during the transition period.

READ MORE: What is Sustainable Report? Meaning, Types, and Benefits

CSSB Interim Chair, Bruce Marchand, said: "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."

To help businesses adapt, the CSSB also announced several transition reliefs. These include delaying the commencement of full sustainability reporting requirements, providing more time to incorporate Scope 3 emissions (supply chain emissions), and reducing the immediate need for detailed scenario analysis.

The standards will remain voluntary until regulators mandate them. To support organisations in understanding and implementing them, the CSSB is hosting an educational seminar in January 2025.

To study more about the standards, click here.

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Source: CSSB