29 April – Canadian securities regulators have made the significant decision to pause the development of mandatory climate-related reporting requirements, a move that is expected to delay key sustainability disclosure initiatives in Canada. The announcement, made by the Canadian Securities Administrators (CSA), impacts the implementation of new climate disclosure rules and amendments related to diversity disclosures.
The CSA explained that the pause was necessary to allow Canadian markets and issuers to adjust to the shifting regulatory landscape globally. This includes changes in major economies such as the European Union and the United States, where significant revisions or cancellations of sustainability disclosure rules are being considered. The CSA’s decision aims to prevent unnecessary confusion and ensure that Canadian businesses are not caught off guard by potentially conflicting or evolving international regulations.
This move follows the publication of the Canadian Sustainability Standards Board’s (CSSB) finalized sustainability standards in December 2024, which align with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (ISSB) framework. These guidelines provide a voluntary framework for climate-related disclosures, allowing Canadian companies the flexibility to implement them on a voluntary basis in the interim.
However, the decision has drawn criticism from various sustainability advocates who argue that delaying the mandatory climate reporting rules could undermine efforts to address climate change and harm Canada’s competitiveness in the global market. They stress that mandatory disclosures are essential for ensuring transparency and accountability in corporate environmental impacts and that postponing such requirements could delay the adoption of necessary climate adaptation strategies.
Despite these concerns, the CSA has emphasized that it will continue to monitor both domestic and international developments and may revisit the issue of mandatory climate reporting in the coming years. This decision reflects Canada’s evolving approach to balancing sustainability goals with the dynamic global regulatory environment.
Source: ESG Today
