• The new guide has been released at the behest of organisations for better climate reporting.
• It also takes its cue from the International Sustainability Standards Board.
• Businesses will benefit from better risk management and greater competitiveness.

The Canadian Sustainability Standards Board (CSSB) recently released a guide that helps Canadian firms efficiently adopt a climate-first approach in sustainability reporting.

The publication comes following the release of two sustainability standards in December 2024: 1) Canadian Sustainability Disclosure Standard (CSDS) 1, which outlines general requirements for reporting sustainability-related financial information, and 2) CSDS 2, which specifically focuses on climate-related disclosures.

And at the time of public consultation, many stakeholders requested guidance on climate reporting first before moving on to more niche sustainability topics. The CSSB considered this request by introducing a two-year transition relief for CSDS 1, giving businesses extra time to prepare for complete sustainability reporting. While this is happening, they can focus on climate-related information through CSDS 2.

READ MORE: What is Sustainability Reporting? Meaning, Types, and Benefits

Considering all aspects, the CSSB has released the Guide on Adopting a Climate-first Approach in Sustainability Reporting, which takes its cue from the International Sustainability Standards Board (ISSB).

With the help of the guide, organisations and their advisors understand how to follow CSDS 2 as well as fulfil important parts of CSDS 1, also called the “applicable CSDS 1 requirements”. This approach is known as the “climate-first” approach, where companies focus on reporting climate-related risks and opportunities first, rather than addressing all sustainability topics at once; subsequently, they can build their reporting capabilities.

CSSB's climate-first approach guide for companies comes when investor demand is ever-growing and in the middle of confusion around mandatory climate reporting regulations. Companies that report voluntarily using this approach are at a greater advantage and are ahead of their counterparts, and may benefit from better risk management and competitiveness in the market.

ALSO READ: EU to Expressly Set Out Sustainability Reporting Rules by October

For more information on the guide, please click here.

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Source: FRAS Canada