Updates to Sustainability Standards and Consultations

Inaugural Canadian Sustainability Disclosure Standards Approved

On December 18, 2024, the Canadian Sustainability Standards Board (CSSB) issued its inaugural Canadian Sustainability Disclosure Standards (CSDS):

• CSDS 1: General Requirements for Disclosure of Sustainability-related Financial Information
• CSDS 2: Climate-related Disclosures

Both CSDS 1 and CSDS 2 are effective for annual reporting periods beginning on or after January 1, 2025. Earlier application is permitted. The CSDS are based on the IFRS Sustainability Standards with amendments considered appropriate for the Canadian context. CSDS 1 and CSDS 2 and their accompanying Bases for Conclusions are now part of the CPA Canada Handbook – Sustainability.

Following the CSSB’s publication, the Canadian Securities Administrators (CSA) provided an update on its climate-related disclosure project, confirming its intention to publish a revised rule for public comment and that it will consider the feedback received by the CSSB during its consultation.

The IESBA approves Ethics Standards for Sustainability Assurance (IESSA)

In December 2024, the International Ethics Standards Board for Accountants (IESBA) approved two new standards to establish the first comprehensive suite of global standards on ethical considerations in sustainability reporting and assurance:

• The International Ethics Standards for Sustainability Assurance (IESSA) and related revisions to the International Code of Ethics for Professional Accountants, including International Independence Standards (“the Code”), setting a global benchmark for ethical behavior and independence in sustainability reporting and assurance.
• Revisions to the Code on the Using the Work of an External Expert, establishing an ethical framework for evaluating the competence, capabilities and objectivity of external experts used by professional accountants and sustainability assurance practitioners.

These profession-agnostic standards set forth a framework of expected behaviours and ethics provisions for use by all sustainability practitioners with the aim to foster greater trust and confidence in sustainability information. Find out more about sustainability professional ethics on Sustainability Simplified.

Competition Bureau Consultation

On December 23, 2024, the Competition Bureau released draft guidelines on environmental claims for public consultation. The comment period closed on February 28, 2025. The draft guidelines are intended to help businesses comply with the new “greenwashing” provisions in the Competition Act which took effect on June 20, 2024. For more insights, be sure to check out our latest blog on Greenwashing & Litigation.

The CSSB’s Proposed 2025-2028 Strategic Plan Consultation

The Canadian Sustainability Standards Board (CSSB) has released its Proposed 2025-2028 Strategic Plan and is inviting public feedback until April 7, 2025. The plan aims to advance sustainability disclosure standards in Canada, aligning with global frameworks, incorporating Indigenous Peoples' rights, and contributing to international standards development.

The CSSB is emphasizing inclusivity, collaboration, and addressing Canada's unique sustainability challenges while fostering global alignment. Learn more about CSSB’s proposed strategic plan.