Canada is stepping up its sustainability efforts through the Canadian Sustainability Standards Board (CSSB), which is set to introduce new disclosure standards for reporting climate-related risks. These standards, modeled after the International Sustainability Standards Board (ISSB), aim to ensure that Canadian organizations remain competitive globally while operating in the public interest. The CSSB’s standards will provide consistent, comparable, and reliable sustainability reporting, empowering investors, customers, and stakeholders to make informed decisions. 

According to Rosemary McGuire, CPA Canada’s VP of Member Experience, “Sustainability reporting offers a clear view into the risks and opportunities facing organizations.” She emphasized the importance of transparent reporting, which supports long-term, risk-informed decision-making. As the world moves towards real action on climate issues, the CSSB will help Canada keep pace with international efforts, particularly as sustainability disclosures become essential for global capital markets. 

While Canada already has sustainability disclosure among larger companies, the quality of reporting has been inconsistent. The new standards aim to harmonize reporting practices, making Canadian businesses’ disclosures comparable with international counterparts. Following ISSB guidelines will also reduce regulatory burdens, mitigate the risks of greenwashing, and avoid conflicting requirements from bills like C-59. 

Additionally, the CSSB ensures that unique Canadian factors, such as Indigenous communities and smaller entities, are considered. McGuire stressed the importance of Canada taking control of its sustainability narrative, stating, “In the absence of information, investors will fill in the blanks themselves.” 

With the adoption of global standards, Canada is poised to attract international capital and remain a leader in sustainability. 

Sources:  

https://www.cpacanada.ca/news/features/prebudget-sustainability 

https://www.theglobeandmail.com/investing/article-canada-responsible-investing-esg/ 

https://www.cfc.forces.gc.ca/259/290/299/286/delhommeau.pdf