Statement by, Julie Segal, Senior Manager, Climate Finance
“Canadian businesses report less than global peers about how they affect, and are affected by, climate change. In large part, this is because Canadian regulators lag behind international counterparts when it comes to requiring this information. The new standards proposed by the Canadian Sustainability Standards Board (CSSB) for climate reporting confirm Canadian businesses should get ready to meet international norms, but tacitly condone the slow pace from Canadian regulators by delaying the timelines for emissions reporting.
The federal government committed in its 2023 Fall Economic Statement to make climate disclosures mandatory for private companies, and the Canadian Securities Administrators (CSA) is overdue to regulate disclosure from public companies. They should both take the CSSB’s alignment with global norms as a sign to pick up their pace.
But there is a glaring missing piece. The guidance from Canadian and international standards bodies would have businesses only counting their emissions, not reducing them. This is akin to only counting the leaking holes in a sinking boat without plugging them. Businesses should be reporting on transition plans to reduce emissions. But for that to happen, Canadian policymakers and regulators must start requiring it. Requiring climate transition plans across the economy would ensure businesses have plans to actually help deal with climate change.”
Background:
- On June 26, 2023, the International Sustainability Standards Board (ISSB) released two Sustainability Disclosure Standards, which are standards to guide companies and financial institutions to report on their climate- and sustainability-related risks and opportunities.
- The Canadian Sustainability Standards Board (CSSB) is developing Canadian Sustainability Disclosure Standards (CSDS) based on the ISSB global baseline – but made two modifications to slow the implementation.
- These standards would be voluntary until mandated by government regulation or legislation. The CSSB is not a regulatory body. Federal and/or provincial regulators would decide whether and how to use the standards to require disclosures from Canadian companies.
ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.
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For more information or to request an interview, please contact:
Alex Ross, Communications Manager, media@environmentaldefence.ca
