Canada's top pension funds call for adopting CSDS to improve sustainability disclosure and investment
Ten of Canada’s largest pension investors and investment managers, overseeing over $2.25tn in assets, declared their support for the Canadian Sustainability Disclosure Standards (CSDS) introduced by the Canadian Sustainability Standards Board (CSSB).
These include the General Requirements for Disclosure of Sustainability-related Financial Information (CSDS 1) and Climate-related Disclosures (CSDS 2), collectively known as the CSSB Standards.
The CSSB Standards create a robust framework specific to the Canadian market while aligning with global baselines. This alignment is essential for the global competitiveness of Canadian companies and helps directors meet their fiduciary duties to the entities they oversee.
Additionally, the standards reduce the reporting burden for Canadian businesses operating or raising capital in multiple jurisdictions.
The investors emphasized the significance of complete, comparable sustainability-related information in making informed investment decisions.
By addressing both general sustainability disclosures and climate-specific requirements, the standards provide a foundation for accessing critical data.
While the framework considers Canadian-specific needs, the investors encouraged issuers not to delay reporting material sustainability information.
They urged companies to use “reasonable and supportable information ... without undue cost or effort.”
Standardized disclosure is critical for effective capital allocation and for assessing sustainability risks and opportunities across industries.
The group explained that their mandates focus on delivering long-term, risk-adjusted returns to support retirement and benefit security for millions of Canadians.
They believe adopting these standards will strengthen Canada’s sustainability disclosure infrastructure, enhance market transparency, and improve the quality of information for investors, regulators, and stakeholders.
Calling for action, the investors urged corporate leaders to implement CSDS 1 and CSDS 2.
They stressed that transparency and comparability are vital for informed investment decisions, which will foster a more sustainable and prosperous future for their beneficiaries.
