The release of Canada’s inaugural sustainability disclosure standards
On 18 December 2024, the Canadian Sustainability Standards Board (CSSB) released the final sustainability disclosure standards: CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information and CSDS 2, Climate-related Disclosures. These standards are effective January 1, 2025 and mark a significant milestone in advancing sustainability reporting in Canada. This follows a public consultation earlier this year on the CSDS exposure drafts, of which the CSSB received feedback from around 529 individuals and 392 organizations across the country.
Key changes in final standards
Changes in the final rules, compared to the exposure drafts, focus on transition reliefs. The CSSB provided more generous transition reliefs across specific requirements to reflect feedback received and views on general readiness for sustainability disclosures.
The table below summarises the additional transition reliefs.
Final standards | Exposure drafts | |
| Scope 3 GHG emissions | After first 3 annual reporting periods | After first 2 annual reporting periods |
| Quantitative scenario analysis | After first 3 annual reporting periods | No relief |
| Time lag between financials and sustainability disclosures | After first 3 annual reporting periods – release both at the same time
Year 1 – can release sustainability disclosures up to 9 months after year-end Year 2 & 3 - up to 6 months after year-end | After first annual reporting period
Can release sustainability disclosures up to 9 months after year-end |
Alignment with ISSB standards
As core requirements of CSDS 1 and CSDS 2 standards remain unchanged from the exposure drafts, the final standards maintain close alignment with IFRS S1 and S2 standards from the International Sustainability Standards Board (ISSB). This alignment fosters interoperability with reporting requirements across other jurisdictions. As of September 2024, around 30 jurisdictions had made progress towards adopting or using ISSB standards.
Adoption across Canada
CSDS S1 and S2 standards are currently voluntary unless mandated by regulators or governments.
- The Office for Superintendent for Financial Institutions (OSFI) B-15Climate Risk Management Guideline requires federally regulated financial institutions (excluding foreign branches) to publish climate-related financial disclosures aligned with IFRS S2. OSFI plans to review the B-15 disclosure requirements following CSSB’s final standards.
- Canadian Securities Administrators (CSA) National Instrument NI 51-107Disclosure of Climate-related Matters proposes requirements for Taskforce for Climate-related Financial Disclosure (TCFD) aligned disclosures. The CSA is working towards a revised climate-related disclosure rule that considers the CSSB final standards. Consultation on this revised rule is expected.
Get ready to implement
Organisations should act now to prepare for these standards by:
- Understanding the requirements: Reviewing CSDS 1 and CSDS 2 to assess how these apply to the organisation. Compare with any sustainability reporting currently being produced to determine overlaps and additional requirements.
- Assessing readiness: Identify gaps in current capabilities, processes and systems. Develop a clear roadmap to adhere with the CSSB standards.
- Establishing governance: Set up robust governance structures for sufficient oversight and accountability over sustainability reporting implementation and integration. Clearly define and allocate roles and responsibilities.
- Building the team: Implement training and capacity building programs to ensure staff across all levels better understand CSSB requirements and are equipped to fulfil their responsibilities.
CSSB plans to release implementation guidance and provide educational opportunities in early 2025 to support organisations in adopting the standards.
How Forvis Mazars can help
If you would like to better understand how the CSSB standards will affect your business or need help implementing changes to align with these standards, please get in touch.
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