The Canadian Sustainability Standards Board has debuted its inaugural Canadian Sustainability Disclosure Standards, which align Canadian organizations with a global sustainability reporting baseline.
CSDS 1 sets the general requirements for material sustainability-related financial information disclosure, while CSDS 2 centers on material information disclosure related to critical climate-related risks and opportunities. These standards have been incorporated into the CPA Canada Handbook – Sustainability alongside supporting Bases for Conclusions, which are key documents detailing the standards' rationale.
The CSDS 1 and CSDS 2 Bases for Conclusions explain the CSSB’s decision-making process in developing the standards. The board’s interim chair, Bruce Marchand, said that the standards reflected the board’s 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,” he said in a statement.
The standards' release was accompanied by a Criteria for Modification Framework establishing the criteria under which the International Sustainability Standards Board's global standards may be explicitly amended for Canada.
Transition relief modification
CSDS 1 and CSDS 2 have been modified for transition relief in the Canadian public interest but align with IFRS S1 and S2. The CSSB factored in feedback on its exposure drafts and indicated that all provisions would take effect after the transition relief expired.
The finalized standards integrated all proposed extended transition reliefs, such as the effective date, start date for beyond-climate sustainability reporting, and Scope 3 greenhouse gas emissions reporting.
Transition relief for the following was also incorporated:
- Start date for aligned financial statements reporting
- Quantitative scenario analysis
- Expansion of the transition relief for Scope 3 GHG emissions reporting
An educational webinar will be conducted in January 2025. The CSSB confirmed that adopting the standards was optional unless required by regulators or governments.
The board added that it would continue to seek input and offer resources to support CSDS adoption as part of a proposed multi-year strategic plan to be publicized for comment in January 2025.
The CPA Canada Handbook – Sustainability outlines Canada’s sustainability standards.