- New sustainability standards launched: CSDS 1 and CSDS 2 now part of CPA Canada’s Sustainability Handbook, supporting consistent reporting across sectors.
- Generous transition relief: Extended timelines for Scope 3 GHG emissions reporting and quantitative scenario analysis to ease adoption.
- Focus on Canadian priorities: The Criteria for Modification Framework ensures alignment with national needs.
Canada has entered a new era of sustainability reporting with the release of CSDS 1 and CSDS 2, now included in the CPA Canada Handbook – Sustainability. These standards, crafted by the Canadian Sustainability Standards Board (CSSB), are designed to align with IFRS Sustainability Disclosure Standards while addressing unique Canadian priorities.
Katie Dunphy, Partner, National ESG Reporting Transformation Leader, KPMG in Canada said:
“The new sustainability standards set by the Canadian Sustainability Standards Board mark a pivotal moment for Canadian businesses. These guidelines will provide a clear, consistent framework for reporting environmental and social risks, which are essential for informed investment decisions. Businesses should approach adoption with a strategic mindset, ensuring they integrate these standards into their operations in a way that aligns with their long-term sustainability goals.”
What’s New:
The standards include notable transition relief to encourage voluntary adoption while addressing practical challenges:
- Extended timelines:
- A one-year delay for initial reporting on sustainability matters beyond climate.
- An additional year for reporting Scope 3 greenhouse gas emissions.
- Two extra years for aligned reporting deadlines, with compliance required six months after the respective year-end.
- Three years of relief for quantitative scenario analysis reporting.
“These standards represent a significant milestone in promoting consistency and comparability in sustainability reporting,“ noted a CSSB representative.
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The CSSB explained: “These changes provide flexibility while maintaining the goal of comprehensive sustainability disclosure.”
Supporting Canadian Context
To ensure relevance, the CSSB introduced the Criteria for Modification Framework, which guides how international standards will be adapted for Canadian priorities. This approach supports seamless integration with IFRS standards while addressing specific regional needs.
For easier access, CPA Canada offers free subscriptions to the Sustainability Handbook until March 31, 2025.
Takeaway
Canada’s new sustainability reporting standards signal a significant step toward transparent and comparable ESG disclosures. The transition relief balances ambition with practicality, giving organizations time to align with evolving requirements.
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