Sustainability Strategic Advisory Committee

CPA Ontario’s Sustainability Strategic Advisory Committee (the “Committee”) convened for its inaugural meeting at CPA Ontario’s offices on March 26, 2024.

Chair and Vice-Chair Elections

Ms. Sarah Keyes was appointed as Committee Chair.

Mr. Scott Morrison was appointed as Committee Vice-Chair.

Committee Objectives

Members discussed and agreed upon the Committee’s objectives as set forth in the Committee’s Terms of Reference.

Objectives:

• Provide a forum for identifying and addressing current and emerging needs of CPA members and CPA students working in public practice and industry relating to sustainability matters.
• Support and contribute to CPA Ontario thought leadership and opinion pieces.
• Advocate for the interests of CPA members and CPA students in sustainability matters to uphold the profession’s relevance in the sustainability domain to protect the public interest.
• Monitor sustainability standard setting and regulatory activity, evaluate their impact on the profession and provide feedback to CPA Ontario for its response to proposed new or revisions to standards and regulations on behalf of CPA members. Monitor, discuss and evaluate potential use and impacts of emerging technologies (e.g. Artificial Intelligence, Blockchain) in the context of sustainability matters.
• Encourage active participation of all members in shaping the future of the profession relating to sustainability matters.
• Advise on sustainability education resources for CPA members and CPA students to build CPA competence to ensure continued relevance of the profession.
• Provide a forum for CPA members and CPA students to network on sustainability matters and share knowledge and experience on sustainability matters.

Definition of Sustainability

Members discussed the working definition of sustainability for the Committee to guide its work. Several definitions were discussed, including sustainability with a single (financial) materiality perspective, a double (impact) materiality perspective and a triple (context-based) materiality perspective. Ultimately, members resolved to adopt a definition of sustainability that considers both a financial materiality lens (outside-in view) and impact materiality lens (inside-out view).

CPAs and Sustainability

Members discussed the importance of upskilling CPAs in sustainability to remain relevant as trusted advisors and how to support CPAs in their journey to learn and apply requirements of sustainability reporting and assurance standards.

The Future of the Profession

Members discussed how sustainability fits into the future of the profession, including ensuring its continued relevance in an ever-evolving world.

Member demographics

Members discussed using CPA Ontario’s demographics to inform the Committee’s focus areas.

Meeting Cadence

Members resolved for the Committee to meet quarterly; two times in person and two times virtually on an alternating basis.

Future Meeting Discussion Topics

Members resolved to discuss at the next meeting: i) emerging issues in sustainability and ii) addressing sustainability challenges and resources for CPAs.

CPA Ontario’s Sustainability Strategic Advisory Committee (the “Committee”) convened for its second meeting on June 6, 2024.

Welcome and Introductions:

Sarah Keyes, the Chair of the Committee, welcomed all members and introduced Joseph Bastien, who will join as the Indigenous representative.

Approval of Previous Minutes and Meeting Summary:

The Committee discussed, adjusted, and unanimously approved the minutes from the March 26, 2024, meeting, and the Meeting summary.

Approval of SSAC Terms of Reference:

The revised Terms of Reference which included amendments discussed in the previous meeting were unanimously approved by the Committee.

CPA Ontario Member Demographics Update:

The Committee engaged in discussions about the demographics of CPA Ontario members and explored strategies for customizing resources to cater to members at various career stages, organization sizes, and sectors, including CPA students.

Emerging Trends and Sustainability Challenges:

The Committee identified several key trends and challenges in sustainability, including:

1. Growing Demand for Carbon Accounting:
• Businesses often overlook the fact that they can turn to their CPAs for help with carbon accounting.
2. Increasing Awareness of CPA Capabilities:
• It’s crucial to raise awareness among businesses that CPAs are well-equipped to handle sustainability reporting and assurance.
3. Shifting Roles of CPAs:
• CPAs are increasingly involved in sustainability reporting within organizations.
• CFOs and finance teams are now being asked to contribute actively.
4. Upskilling Opportunities for CPAs:
• There is a significant need for CPAs to upskill to meet the rising demand for sustainability services.
5. Prioritization of Climate-Related Disclosures:
• Regulatory pressures are driving companies to prioritize climate-related disclosures over broader sustainability metrics.
6. Increasing demand for sustainability-related disclosures
• Customers of private companies are starting to ask for sustainability information.
• Audit committees are starting to exert pressure specifically on sustainability reporting.
7. Budget Allocation for Sustainability Reporting:
• More companies are allocating budget resources for sustainability reporting.

Resources for CPAs:

The Committee discussed the existing resources available to CPAs and recommended the following as priority areas for additional guidance:

• Carbon accounting
• Integrating Indigenous considerations into sustainability reporting.

Update on CPA Ontario’s Response to the Canadian Sustainability Disclosure Standards Exposure Draft Consultation:

An overview of the CPA Ontario’s response to the Canadian Sustainability Standards Board (CSSB) consultation was provided. Key points included:

• The need for meaningful Indigenous consultation in the development of sustainability standards prior to finalizing CSSB standards.
• The CSSB’s justification for the additional proposed transitional relief in the CSSB standards was unclear.
• A recommendation for the CSSB standards to align closely with those of International Sustainability Standards Board’s unless modifications are justified.

Ongoing and Future Activities:

The Committee agreed to collaborate with CPA Ontario via email throughout the summer on resources for the priority areas identified.

CPA Ontario’s Sustainability Strategic Advisory Committee (the “Committee”) convened for its third meeting on September 10, 2024.

Welcome and Introductions:

Scott Morrison, Vice-Chair of the Committee chaired the meeting in Sarah Keyes' absence, welcomed all members.

Approval of Previous Minutes and Meeting Summary:

The Committee discussed and unanimously approved the minutes from the June 6, 2024, meeting.

Draft SSAC Resource Decision Criteria:

The Committee reviewed the draft SSAC Resource Decision Criteria, focusing on how to determine the necessary resources and the decision path.

The Committee discussed factors to consider under the three buckets of Importance/impact, Relevance to CPA and Urgency. It was decided the that following would be added to the criteria:

• Whether the topic is uniquely Canadian
• State of member readiness
• What level of depth do CPAs need to have

Carbon Accounting Resources:

The Committee discussed the importance of preparing CPAs for carbon accounting and the need to track course participation. Key points included:

• Ensuring the course aligns with the GHG Protocol.
• Providing practical, awareness-raising courses that prepare CPAs to do the work.
• Making members aware of available resources.

Carbon Accounting Checklist:

The Committee reviewed and discussed the carbon accounting checklist outline, emphasizing data collection and verification. Key points included:

• Focusing on data quality and defining base year criteria.
• Framing the checklist as questions to guide CPAs.
• Exploring practical ways to engage members with the content, such as webinars or panel discussions.

Indigenous Resources:

The Committee discussed the importance of Indigenous resources and the upcoming CPAO Indigenous awareness course. Key points included:

• Building Indigenous cultural awareness and providing foundational knowledge.

• The need for a phased approach to Indigenous resources, starting with awareness and moving to practical applications.

• Developing additional resources such as blogs, webinars, and checklists.
• Emphasizing the intersectionality of Indigenous issues with broader sustainability topics.
• Leveraging existing resources and ensuring members are aware of available offerings.

Update on Canadian Regulatory Developments:

The Committee received an update on Bill C-59, which includes key amendments to Canadian competition law around greenwashing. Key points included:

• Understanding Bill C-59’s impact, including litigation risks and the importance of governance and controls.
• The role of CPAs in providing reliable information and complying with the CPA Code to not associate with false or misleading information.

Ongoing and Future Activities:

The Committee agreed to collaborate with CPA Ontario via email on resources for the priority areas identified.

CPA Ontario’s Sustainability Strategic Advisory Committee (the “Committee”) convened for its fourth meeting on December 3, 2024.

Welcome and Introductions:

Sarah Keyes, the Chair of the Committee, welcomed all members.

Approval of Previous Minutes and Meeting Summary:

The Committee discussed and unanimously approved the minutes from the September 10, 2024 meeting.

Exposure Draft (ED)

The Committee discussed key points from CPA Ontario’s response to the IASB ED on Climate-related & Other Uncertainties. The Committee discussed the ambiguity surrounding the IFRS mandate for obligatory disclosures regarding climate-related financial risks, as well as the growing attention from regulators towards incorporating climate-related financial risks within financial statements.

Trends in sustainability & opportunities for small & medium practices (SMP)

The Committee discussed emerging trends in sustainability, including European CSRDs and their implications for Canadian companies operating in Europe. They also considered opportunities for SMPs, such as advising on government/tax incentives and conducting Scope 3 emissions audits. Additionally, the Committee examined challenges encountered by SMPs, such as short-staffing, and discussed potential solutions and available resources to address these issues.

Sustainability Guidance for CPAs on Boards:

The Committee discussed how to support CPAs sitting on boards to drive awareness and leadership on the importance of sustainability. Key points included the importance of sustainability and relevance to long term value creation for stakeholders and shareholders, and director’s fiduciary duty and responsibility and the need for concise, differentiating guidance for CPAs sitting on boards.

CPA Competency Map Update:

Guest speaker from CPA Ontario provided an update on the new certification program and the inclusion of sustainability in the competency map. The Committee expressed support for these inclusions and offered their expertise for future developments.

Intersection of Technology and Sustainability:

The Committee discussed technology in sustainability reporting and suitable resources for members in small and medium-sized enterprises, including the responsible use of artificial intelligence and digital reporting tools within broader risk management strategies in sustainability.

Ongoing and Future Activities:

The Committee agreed to collaborate with CPA Ontario via email on resources for the priority areas identified.