CSA backs CSSB's launch of sustainability disclosure standards, seeking public input
The Canadian Securities Administrators (CSA) have officially expressed their support for the initiation of the Canadian Sustainability Standards Board's (CSSB) consultation on the first and second Canadian Sustainability Disclosure Standards.
CSA Chair and CEO of the Alberta Securities Commission, Stan Magidson, stated, “We are pleased to see publication of the CSSB's consultation on its first set of standards.”
He further emphasized the importance of feedback on these standards as it could play a crucial role in refining the CSA's proposed climate-related disclosure rule. Magidson strongly urged stakeholders to participate and share their perspectives on the proposed CSSB standards.
For the to be implemented as mandatory under Canadian securities law, they must be incorporated into a CSA rule. Following the completion of the CSSB consultation and the finalization of its standards, the CSA plans to invite feedback on a revised rule that will define climate-related disclosure requirements.
This upcoming proposal will reflect the final CSSB standards and might include adjustments to suit the Canadian capital markets context. The CSA intends to adopt only those aspects of the sustainability standards deemed essential for climate-related disclosures.
The CSA is also keeping a close watch on international trends in this area, including the recent approval of the climate-related disclosures rule by the United States Securities and Exchange Commission (SEC) on March 6, 2024.
Consistent with its previous announcements, the CSA reaffirms its commitment to developing disclosure requirements that enable the evaluation of material climate-related risks, minimize market fragmentation, and enhance the efficiency of capital markets.
These efforts consider the diverse needs and capabilities of issuers across varied sizes.
When the time comes to publish its revised rule, the CSA will solicit public input on several topics, including the application range and the potential necessity for additional time or guidelines to aid reporting issuers in meeting the disclosure standards.
