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.