The Canadian Securities Administrators (CSA) has recognized the launch of the Canadian Sustainability Standards Board’s (CSSB) consultation on Canadian Sustainability Disclosure Standards. This has to do with climate disclosure.
The CSA pointed to the fact that the US has recently added climate disclosure regulations, requiring public firms to report their impact on the climate. Some have criticized these new rules in the US, typically along party lines. Some members of Congress aim to challenge the rules as beyond the responsibility of the Securities and Exchange Commission, which is tasked with ensuring efficient markets and capital formation. The CSA said they are monitoring developments regarding climate disclosure around the world, mentioning specifically the US.
The CSA explained that in order to become mandatory under Canadian securities legislation, climate disclosure must first be incorporated into a CSA rule.
Once the CSSB consultation is complete the CSA anticipates seeking comment on a revised rule setting out climate-related disclosure requirements.
Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission, said they are pleased to see the consultation.
“We’re interested in the feedback the CSSB receives generally and specific to certain questions, as it may help inform revisions to our proposed climate-related disclosure rule. We strongly encourage interested and affected parties to share their views on the proposed CSSB standards.”
The CSA said it remains committed to working towards disclosure requirements that support the assessment of material climate-related risks, reduce market fragmentation, and contribute to efficient capital markets while considering the needs and capabilities of issuers of different sizes.
