The Canadian Government recently announced new plans for sustainable investment guidelines and expanded mandatory climate-related financial disclosures. This year marked the first reporting period for Canadian federally regulated financial institutions to report under TCFD guidelines, and now the Canadian Government is expanding those requirements to large federally incorporated private companies. ESG Today writes:
“Under its new plan, the government said that it will bring forward amendments to the Canada Business Corporations Act that will require the new climate-related financial disclosures, and that it will launch a regulatory process to determine the substance of the disclosure requirements, as well as the size of companies to be covered by the new requirements.”
While the Canadian Government has not yet promulgated specific standards, disclosures will likely be made pursuant to CSDS 1 and CSDS 2, the ISSB equivalent standards created by the Canadian Sustainability Standards Board (CSSB). Additionally, precise scoping requirements are forthcoming, but the Canadian Government stated that small and medium-sized companies will not be subject to mandatory climate reporting. Canada adds another jurisdiction to the growing list of countries requiring climate-related disclosures and will likely join Australia and Hong Kong in aligning with the ISSB.
Our members can learn more about mandatory climate reporting here.
If you aren’t already subscribed to our complimentary ESG blog, sign up here for daily updates delivered right to you.
