Canadian Sustainability Standards Board calls for public input

The Canadian Sustainability Standards Board recently launched a 90-day public consultation period, ending on June 10, in search of expertise to help the CSSB fulfill its mandate to advance the adoption of sustainability disclosure standards in Canada.   

“We propose the national standards,” says Charles-Antoine St-Jean, FCPA, FCA, the Montreal-based inaugural chair of the CSSB. “But to have legitimacy and stability we need to have a very successful consultation where Canadians tell us what those standards should be.” 

“We will work with the International Sustainability Standards Board on their global priorities, but as we consult, there might be some topics and issues that are clearly Canadian. We talk about establishing a global baseline for Canada—that is the goal,” adds St-Jean, a former national managing partner with EY and former president and CEO of CPA Canada. 

The CSSB is hoping for input from as many people and organizations as possible from across Canada during the consultation period. This will allow the CSSB to take an accurate pulse to ensure that the standards are really fit for purpose for Canada, St-Jean adds.

The CSSB’s public consultation provides an opportunity for participants to comment on three key documents—one for each of the two proposed Canadian Sustainability Disclosure Standards, CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information, and CSDS 2, Climate-related Disclosures. These align with IFRS Sustainability Disclosure Standards S1 and S2, but with certain Canadian modifications proposed.  

A third document elaborates on how the CSSB proposes to introduce changes to IFRS sustainability disclosure standards, should they be required to do so, for Canadian use. 

“It’s a very exciting development, a critical next step in advancing the use of sustainability disclosure standards in Canada and allowing for regulation,” says Taryn Abate, CPA and director of research and thought leadership in the Research, Guidance & Support Group at CPA Canada in Toronto. 

Abate says that anyone who wants to contribute during the consultation period can submit their response directly to the CSSB, or reach out to CPA Canada to request that their feedback be considered for inclusion as part of the national organization’s response.  

She notes that CPA Canada has worked very closely with the ISSB since its inception in 2021. As a result of that connection, “we worked with the ISSB and the initial setup of the CSSB to plan outreach sessions to gather really great feedback from a diverse range of interested and affected parties on the initial ISSB consultations. 

“That feedback included responses from a variety of roles, including CPAs in preparer and assurance roles, sustainability practitioners, investors and people charged with governance responsibilities,” says Abate. “We hope that the valuable guidance we’ve developed for the ISSB standards will provide a really strong foundation to support the Canadian accounting profession when the Canadian sustainability disclosure standards are issued later this year,” she adds. 

Following the public consultation and analysis of results, the CSSB will finalize its first Canadian Sustainability Disclosure Standards, making them ready for Canadian organizations to voluntarily adopt. Regulators may choose to mandate those standards and will embark on their own consultation following the CSSB’s. 

Another major goal that the CSSB is seeking to fulfill for its first fiscal year is to begin discussions on the organization’s strategic plan in order to establish a roadmap over the next three to four years. It is aiming to have that strategic plan in place for the start of the next fiscal year on April 1, 2025, according to St-Jean. 

St-Jean, whose three-year term expires on March 31, 2026, says some of the initial goals he would like to achieve over his mandate as CSSB chair are to make sure the newly established organization is running smoothly, is able to address specific Canadian requirements, and that a Canadian influence has developed with respect to global sustainability standards. 

With respect to the latter, concerning the CSSB’s position on the world stage, St-Jean says that if certain areas emerge where the CSSB can play a special role to accelerate the development of international standards “we’re prepared—as we’ve done in the past—to raise our hand to say ‘present.’” he stresses. 

Photo Caption: Regulation and global alignment is needed in the sustainability fight, and that’s one of the main things the CSSB is fighting for. Getty Images