CPA Canada lends a hand to ISSB and earns global recognition
CPA Canada has contributed its expertise to the International Sustainability Standards Board since the ISSB’s establishment in 2021 at COP26 in Glasgow, Scotland, including membership in the ISSB’s partnership framework when that opportunity opened up in 2022. Beyond supporting the ISSB, Canada will also welcome the board to Canadian soil on May 14 when the ISSB’s office in Montreal will officially open.
“We were already preparing to support the Canadian accounting profession and our Canadian members in anticipation of the issuance of the ISSB standards,” says Taryn Abate, CPA, director of research and thought leadership in the research, guidance and support group at CPA Canada in Toronto. “So, when the partnership framework launched, the resources that CPA Canada was developing were perfectly suited to support what they are doing.”
CPA Canada is dedicated to helping the ISSB achieve its four key objectives, including:
- developing standards for a global baseline of sustainability disclosures
- meet the information needs of investors
- enable companies to provide comprehensive sustainability information to global capital markets; and
- facilitate interoperability with disclosures that are jurisdiction-specific and/or aimed at broader stakeholder groups.
Contributions to the IFRS Knowledge Hub
CPA Canada has, so far, contributed three resources to the IFRS Knowledge Hub, an online information source to inform and guide preparers about sustainability disclosure developments and requirements. They are:
- Scope 3 greenhouse gas (GHG) emissions – are they on your radar? (published February 2024). This resource examines how boards of directors can prepare for rising stakeholder expectations in terms of measuring, reporting, and reducing scope 3 GHG emissions.
- Sustainability reporting alert: Scope 3 GHG emissions (published November 2023). This alert provides resources and guidance to assist responsible parties within companies to prepare for Scope 3 GHG emissions Sustainability Disclosure Standards issued by the ISSB.
- Sustainability reporting alert: Scope 1 & 2 GHG emissions (published October 2023). This alert provides resources and guidance to assist in preparation for Scope 1 & 2 GHG emissions Sustainability Disclosure Standards issued by the ISSB.
All of the resources issued by CPA Canada are intended to support the implementation of IFRS S2 –Climate-related disclosures, says Abate, who adds that two additional alerts are currently being prepared, with more planned.
“The series of reporting alerts are developed with direct engagement and feedback from our members,” adds Abate. “We have two highly engaged committees working with us to provide their expertise regarding the application of the standards and feedback on the questions preparers will likely have as they start to implement these standards.”
Webinar series
An ISSB online webinar series is currently underway, sponsored jointly by CPA Canada and the Institute of Corporate Directors (ICD). There are four webinars in this series, with the first three having already taken place (but recordings are still available to view):
- The Future of Sustainability Reporting with ISSB Standards, held in September 2023: This seminar provided a general overview of ISSB sustainability disclosure requirements, including with respect to IFRS S1- General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2 –Climate-related Disclosures.
- The Future of Sustainability Reporting with ISSB Standards - Interoperability, held in January 2024. This seminar discussed the interoperability of reporting entities applying ISSB climate-related disclosure requirements with other overlapping standards such as under the European Sustainability Reporting Standards.
- The Future of Sustainability Reporting with ISSB Standards - Assurance Requirements, held in March 2024. This seminar covered the growing demand for third-party assurance requirements to verify the integrity of sustainability reporting under ISSB standards.
The fourth seminar is scheduled for April 2024.
Rosemary McGuire, CPA and vice-president of research, guidance and support at CPA Canada, is the moderator of these discussion panels, which have been open to all CPA members, free of charge, following an online registration process with the ICD.
Canadian Champions for Global Sustainability Standards
CPA Canada brought together the Canadian Champions for Global Sustainability Standards, a coalition of organizations from both the private and public sectors in Canada, to support a bid to host the ISSB in Canada. This group succeeded in securing a Montreal-based office that will be opening in May 2024.
“This effort cemented Canada and the accounting profession’s status as an integral player in fostering a robust and globally recognized sustainability reporting ecosystem,” says Abate.
CPA Canada has a long history of being associated with sustainability “and we’re going to continue to champion a more sustainable future,” she stresses.
Photo Caption: The ISSB is a huge step in creating a more sustainable future, and CPA Canada has made major contributions to its resources. Getty Images