Canadian Sustainability Disclosure Standards (CSDS)
The CSDS are based on the IFRS Sustainability Standards with amendments considered appropriate for the Canadian context.
In December 2024, the Canadian Sustainability Standards Board (CSSB) issued its inaugural sustainability disclosure standards, CSDS 1 and CSDS 2:
- CSDS 1: General Requirements for Disclosure of Sustainability-related Financial Informatio
- 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.
Who's impacted?
CSDS 1 and CSDS 2 are voluntary. 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?
On December 18, 2024, the CSSB finalized and issued CSDS 1 and CSDS 2 along with the Criteria for Modification Framework which outlines how the CSSB decides to make changes to IFRS Sustainability Disclosure Standards to reflect Canadian priorities.
CSDS 1 and CSDS 2 and their accompanying Bases for Conclusions are now part of the CPA Canada Handbook – Sustainability.
What do Canadian CPAs need to know?
The CSDS are not yet mandatory in Canada, however the CSA reiterated in its December 18, 2024 market update that it will publish a revised rule to NI 51-107 – Disclosure of Climate-related Matters for public comment. Given the issuance of the CSDS, we expect the CSA to move forward with these revisions in due course
OSFI announced on March 20, 2024, updates to its climate regulation, Guideline B-15 to align the disclosure expectations in the Guideline’s Annex 2-2 with the IFRS S2 Climate-related Disclosure requirements.
Where can I learn more?
For more information, you can also refer to the CSSB website.