Canada’s shift from voluntary to mandatory ESG reporting has sparked increased scrutiny and expectations for transparency and accuracy, as discussed at the recent ESG Summit in Toronto. Scott Morrison from PwC emphasized that mandatory reporting brings added pressure for robust, high-quality disclosures. Experts, including Heather Lang from the ISSB, highlighted that the new global standards aim to provide investors with essential information while accommodating local issues like Indigenous rights in Canada. 

Lang noted that countries like Australia and Hong Kong are adopting ISSB standards, with ongoing research focusing on biodiversity and human capital—both crucial for Canada’s environmental landscape. Meryem Baskoun of Air Canada discussed the importance of flexibility, noting that integrating new frameworks without duplicating efforts is key for Canadian firms managing established processes. She stressed the need for interoperability between standards to reduce complexity in ESG reporting. 

Kealey Martin from Fortis Inc. described the challenge of tracking scope 3 emissions and preparing credible climate scenarios, particularly with their operations spanning North America. Investor scrutiny on localized climate risks, such as wildfires in British Columbia, has further pushed Fortis to improve their ESG practices gradually. 

Regulator Jo-Anne Matear from the Ontario Securities Commission highlighted the investor-driven demand for detailed disclosures. She mentioned that Canada’s materiality approach prioritizes investor information, contrasting with Europe’s broader societal focus. Matear warned that over-regulation might drive companies to list elsewhere, while under-regulation could limit access to foreign capital. 

Looking forward, panelists suggested that Canadian companies should focus on building foundational ESG practices. Integrating ESG data with financial filings will be a challenge, but it’s essential for ensuring comprehensive disclosures. As Canada adapts to global standards, companies are advised to provide “decision-useful” information for investors, aiming for progress over perfection. 

Sources:  

https://www.canadianlawyermag.com/practice-areas/esg/sustainability-standards-evolve-experts-examine-canadas-growing-esg-compliance-challenges/389467 

https://www.airportprojects.net/sampntpenvironmentalreview/?gad_source=1&gclid=CjwKCAiAxKy5BhBbEiwAYiW8WVKtNoTvdkFyfzGxaZmr-BDYns1BUwLLJviT_MbKIw73F22fUwaBoCADIQAvD_BwE 

https://www.bakertilly.com/specialties/contract-regulatory-compliance?utm_source=googleads&utm_medium=paidsearch&utm_campaign=Team+6%3A+GCAS&utm_id=7988175113&utm_content=alwayson&gclid=CjwKCAiAxKy5BhBbEiwAYiWyL9JxQ99yPsnaI5-rNM1d81baNBbn3bMQu4Y-GtOuktH9tdsNcaaRoCwQQQAvD_BwE