ISSB Adoption Picks up Steam in Canada

Canada has launched a consultation process to determine the path forward for issb adoption in the country. The Canadian Securities Administrators (CSA) is seeking input from market participants on incorporating the standards of the International Sustainability Standards Board (ISSB) into domestic reporting requirements.

The CSA asked whether companies should receive relief from duplicative reporting on Scope 3 greenhouse gas emissions if they disclose according to ISSB standards. They also want views on expanding ESG disclosure beyond just climate-related risks and opportunities. With the goal of developing a coordinated North American approach, Canada is evaluating how best to promote issb adoption in a way that limits undue burden for businesses.

Streamlining ESG Reporting

By aligning with ISSB guidelines, Canada aims to streamline the process of ESG reporting for listed companies. The consultation paper states that the “CSA is considering ways to reduce duplicative disclosure requirements for reporting issuers…including through reliance on ISSB standards where appropriate.” This would reduce compliance costs while still providing investors with decision-useful sustainability data. Canada recognizes the need for international issb adoption to facilitate cross-border investment and comparisons.

With the United States also actively implementing ISSB standards, adopting a consistent approach across North America could boost issb adoption. It would give regional companies and investors a unified framework for assessing sustainability impacts and performance. Those who submitted comments generally supported Canada’s goal of recognizing international ESG reporting norms to reduce complexity for market participants. The CSA will analyze feedback as it develops a proposed national instrument on issb adoption.