Canada is set to mandate climate-related financial disclosures for large, federally incorporated companies. This initiative expands the government’s ongoing efforts to align with the Task Force on Climate-related Financial Disclosures (TCFD) framework, aiming to improve transparency on companies’ environmental impacts. The new requirements, announced in Canada’s 2023 Fall Economic Statement, will include amendments to the Canada Business Corporations Act and focus on fostering sustainable investment. 

Additionally, the government will introduce a sustainable investment taxonomy to categorize green and transition activities. While small- and medium-sized businesses are exempt, voluntary reporting is encouraged. These measures are part of Canada’s strategy to attract private capital and accelerate progress toward net-zero emissions by 2050. 

The Canadian government first initiated this process in 2021 when Prime Minister Justin Trudeau directed the implementation of climate disclosures, with the Office of the Superintendent of Financial Institutions (OSFI) already requiring federally regulated financial institutions to publish TCFD-aligned climate disclosures by 2024. The newly announced plan will build on these efforts by introducing broader corporate reporting regulations for larger firms. 

The Canadian Sustainability Standards Board (CSSB) has also proposed standards aligned with the International Sustainability Standards Board (ISSB), which are expected to inform the new disclosure rules. These steps are intended to enhance accountability, reduce carbon emissions, and drive sustainable economic growth by encouraging greater investment in environmentally responsible projects. 

Deputy Prime Minister Chrystia Freeland highlighted that the new guidelines will play a crucial role in directing private capital towards Canada’s net-zero objectives, fostering economic growth, and creating new job opportunities. The government remains committed to its goal of achieving net-zero emissions by 2050. 

Sources:  

https://www.esgtoday.com/canada-to-introduce-mandatory-climate-disclosure-requirements-for-large-companies/ 

https://www.canada.ca/en/department-finance/news/2024/10/government-advances-made-in-canada-sustainable-investment-guidelines-and-mandatory-climate-disclosures-to-accelerate-progress-to-net-zero-emissions.html 

https://www.dentons.com/en/insights/articles/2024/october/11/government-of-canada-announces-intention-to-introduce 

https://esgnews.com/canada-to-set-mandatory-climate-disclosure-criteria-for-large-private-companies/