Sustainability Reporting Standards

Who's impacted?

Local jurisdictional authorities will decide as to if and when these standards are adopted. Refer to "What do Canadian CPAs need to know" below for Canadian implications.

The International Organization of Securities Commissions (IOSCO), which represents 95% of the world’s securities markets, endorsed the IFRS Sustainability Standards, encouraging its member commissions to adopt the standards in their respective jurisdictions.

What’s the latest?

• The ISSB plans to provide an update on agenda priorities in the first half of 2024 based on its consultation, which included:
  • Biodiversity, ecosystems and ecosystem services
  • Human capital
  • Human rights
  • Integration of financial reporting
• The ISSB issued updated Sustainability Accounting Standards Board (SASB) standards in January 2024 to enhance their international applicability. 
• The ISSB concluded a comment period on the IFRS Sustainability Disclosure Taxonomy in September 2023. The ISSB will consider stakeholder feedback before issuance of the final taxonomy.

What do Canadian CPAs need to know?

The IFRS Sustainability Standards as issued by the ISSB are not yet mandatory in Canada.

However, the Canadian Sustainability Standards Board (CSSB) issued their inaugural Canadian Sustainability Disclosure Standards (CSDS), based on the IFRS Sustainability Standards, on March 13, 2024. Refer below for more information.

Where can I learn more?

For more information, please refer to our At a Glance: Sustainability Reporting Standards and Regulations and related FAQs

You can also refer to the ISSB website for:

• IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2: Climate-related Disclosures

Who's impacted?

The CSSB is a standard setting organization and does not have the authority to mandate disclosure requirements. It is the role of regulators, such as the Canadian Securities Administrators (CSA) and the Office of Superintendent of Financial Institutions (OSFI) in Canada to mandate reporting in accordance with specific standards.

Refer to our Sustainability Reporting Regulation page for the latest information on Canadian regulatory requirements.

What's the latest?

The CSDS exposure drafts were issued on March 13, 2024, for comment. The drafts are out for comment until June 10, 2024.

The CSSB expects to finalize the standards by the end of 2024.

What do Canadian CPAs need to know?

The CSDS are not yet mandatory in Canada, however the CSA has announced that, once the consultation on the CSDS is complete and they are finalized, the CSA anticipates that they will seek comment on a revised rule to NI 51-107 – Disclosure of Climate-related Matters. The CSA also stated that they may consider additional modifications considered appropriate for Canadian capital markets.

Additionally, the Office of Superintendent of Financial Institutions has signaled its intent to align its climate regulation, B-15, to the IFRS Sustainability Standards back in June 2023. We expect OSFI to take steps to revisit B-15 once the CSDS are final.

Where can I learn more?

For more information, please refer to our CSDS Summary and our FAQs.

You can also refer to the CSSB website for:

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

Who's impacted?

The companies* that will be required to apply ESRS under the European Union (EU)’s CSRD are:

• All companies with securities listed on an EU-regulated market
• “Large” EU companies that are not listed, with “large” defined as exceeding two of the three following metrics for two consecutive balance sheet dates:
  • Total assets of €25 million
  • Net turnover (revenue) of €50 million
  • Average of 250 employees
• EU companies of a “Large group” and not listed, with “Large group” defined the same as above, but for the consolidated group

^{* The criteria listed here are guidelines only and should not be considered a substitute to professional/legal advice}

What's the latest?

EFRAG is currently developing additional sector-specific sustainability standards which are expected to be issued in the coming years.

What do Canadian CPAs need to know?

While the CSRD and therefore the ESRS do not directly apply to Canadian companies, Canadian companies with EU operations that meet the size requirements may be required to report sustainability information for their EU subsidiary(ies); or if on a consolidated basis the criteria for a large group is met, consolidated sustainability reporting would be required, inclusive of non-EU operations.

The extra-territorial impacts of the CSRD should not be understated and Canadian CPAs should be aware of the potential reporting requirements which could extend beyond EU subsidiaries.

Where can I learn more?

For more information, please refer to our At a Glance: Sustainability Reporting Standards and Regulations and related FAQs.

You can also refer to:

• European Commission CSRD
• Final ESRS 
  
  

Who’s impacted?

The GRI standards are not required in Canada, the GRI sustainability reporting standards are voluntary.

What’s the latest?

The GRI standard setting board is developing forty sector specific standards, with three (3) already published for the oil and gas, coal and agriculture, aquaculture and fishing sectors.

What do Canadian CPAs need to know?

While the GRI standards are not mandatory in Canada, many companies do voluntarily choose to report under the GRI standards due to their global acceptance. CPAs therefore should be familiar with the GRI standards. 

Where can I learn more?

For more information, please refer to our At a Glance: Sustainability Reporting Standards and Regulations.

You can also refer to:

• Final GRI Standards