CPA Canada urges united effort domestically to support international sustainability standards board
TORONTO, May 31, 2021 – Chartered Professional Accountants of Canada (CPA Canada) is encouraging leaders from the country’s private and public sectors to weigh in on important steps toward establishing a new international sustainability standards board.
The IFRS Foundation Trustees have launched a consultation relating to the governance and composition of a proposed International Sustainability Standards Board (ISSB). If established, the ISSB will develop a set of global standards for reporting on environmental, social and governance (ESG) matters.
Currently, there are multiple reporting frameworks related to sustainability and variability in reporting approaches. The business landscape has evolved to the point where a global common solution is needed. An ISSB will reduce complexity and establish a common playing field with high-quality global standards for ESG reporting. Importantly, this initiative has been strongly supported by international securities regulators.
“This would enable clearer, consistent and comparable information needed by businesses, investors and other stakeholders, including governments and regulators,” explains Charles-Antoine St-Jean, president and CEO, CPA Canada.
Canada has a strong track record of working with global institutions on sustainability and standard setting, and Canada has an important role to play in shaping the future of sustainability reporting.
“Now is the time to act and provide Canadian input into the consultation effort,” adds St-Jean. “Input at this early stage will shape the foundation of the ISSB and demonstrate strong Canadian interest and support for this major global sustainability initiative.”
Canada has long been known both for the quality of its standard setting and for its independent and transparent governance and oversight for the delivery of those standards. The accounting profession’s ongoing contribution is providing expertise, resources and funding.
“We are proactively driving the conversation because investors and other stakeholders are looking for greater clarity on how organizations are addressing sustainability,” says St-Jean, adding: “Our members play a significant role in business, capital markets and the corporate reporting ecosystem. That knowledge combined with our respected role supporting standard setting reinforces why CPA Canada is spearheading the endorsement of the ISSB.”
The Trustees will review comments on the constitutional changes that are the subject of the consultation and they will announce their decision on a new ISSB by the United Nations Climate Conference, COP26, in November 2021.
The consultation comment deadline is July 29, 2021.
Visit the link www.ifrs.org/projects/work-plan/sustainability-reporting/ for more information on the current consultation on an ISSB.