Canadian Securities Administrators Applaud Launch of Canadian Sustainability Standards Board's Consultation on Disclosure Standards

In a significant development for Canada's financial landscape, the Canadian Securities Administrators (CSA) have welcomed the commencement of the consultation process by the Canadian Sustainability Standards Board (CSSB) regarding the Canadian Sustainability Disclosure Standards 1 and 2.

Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission, expressed satisfaction at the publication of CSSB's consultation on its inaugural set of standards. He emphasized the importance of gathering feedback, both general and specific, which could potentially influence revisions to the proposed climate-related disclosure rule. Magidson urged all interested and affected parties to actively participate in sharing their perspectives on the proposed CSSB standards.

For the CSSB standards to become binding under Canadian securities legislation, they must be incorporated into a CSA rule. Following the completion of the CSSB consultation and finalization of its standards, the CSA intends to seek commentary on a revised rule outlining climate-related disclosure requirements. This proposal will take into account the finalized CSSB standards and may incorporate adjustments tailored for the Canadian capital markets. The CSA aims to adopt only those provisions of the sustainability standards essential for facilitating climate-related disclosures.

The CSA remains vigilant in monitoring and evaluating global developments in this realm, including the recent approval by the United States Securities and Exchange Commission (SEC) of a climate-related disclosures rule on March 6, 2024.

Reiterating their commitment to fostering disclosure requirements conducive to assessing material climate-related risks, reducing market fragmentation, and enhancing the efficiency of capital markets, the CSA emphasizes its consideration of the diverse needs and capabilities of issuers of varying sizes. Upon publication of the revised rule, the CSA will solicit public input on various aspects, including the scope of application and the necessity for additional time and/or guidance to aid reporting issuers in complying with specific disclosure mandates.