As per ESG Today, the International Sustainability Standards Board (ISSB) disclosure criteria, which are derived from the International Financial Reporting Standards (IFRS) Foundation, serve as the foundation for this initiative, which aims to enhance transparency in the way businesses report on sustainability risks and opportunities.

In addition to being a reaction to mounting environmental concerns, the release of these proposed rules is in line with orders from Canadian Prime Minister Justin Trudeau and later government statements for federally regulated financial institutions to make climate disclosures available. This is in line with the larger framework of the Task Force on Climate-related Financial Disclosures (TCFD), which is currently under the jurisdiction of the ISSB following its formation at the COP26 climate conference.

The goal of the proposed Canadian standards, CSDS 1 and CSDS 2, is to improve the quality of information that investors may access by bringing them into compliance with the first sustainability and climate reporting standards of the IFRS and adding changes unique to Canada. A postponed implementation date of January 1, 2025, and expanded reliefs for comprehensive disclosures—including Scope 3 emissions—are among these changes.

The CSSB has launched a consultation process in conjunction with the publication of these guidelines, with an emphasis on the details of climate resilience reporting and the integration of sustainability reporting with financial reporting. Organizations are urged to participate in this consultation in order to influence how sustainability disclosures are made in Canada going forward.

With the release of the first proposed Canadian Sustainability Disclosure Standards, we're taking a significant step towards ensuring that sustainability is not just a buzzword but a fundamental aspect of our economic fabric, said CSSB Chair Charles-Antoine St-Jean, highlighting the significance of these standards in integrating sustainability into Canada's economic framework.

Stan Magidson, the chair of the CSA and the CEO of the Alberta Securities Commission, further endorsed the move by stressing the significance of the consultation for improving climate-related disclosure regulations and inviting interested parties to provide their viewpoints.

This milestone highlights the vital role that transparent, standardized reporting plays in promoting environmental accountability and action, and it represents a turning point in Canada's commitment to a sustainable future.