Lightbulb drawn around tree image, indicating sustainable ideas

It’s been almost a full year since the Canadian Securities Administrators (CSA) issued proposed climate-related disclosure standards. Since then, both the U.S. Securities and Exchange Commission (SEC) and the new International Sustainability Standards Board (ISSB) issued their own proposals. As a result, the CSA is now reconsidering its proposed climate disclosure rules.

All three sets of proposals are based on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD); however, there are significant differences in the details of what must be disclosed under the various regulators’ approaches.

The CSA said it is now “analyzing the key differences and will continue to monitor the evolution of these proposals.”

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The Canadian regulators said they are also revisiting the feedback received on their initial proposals, along with the submissions from Canadian firms and groups to the SEC and ISSB consultations.

“Climate-related disclosure standards that elicit consistent and comparable disclosure for investors and that support a comprehensive global baseline of sustainability disclosures are a priority for the CSA,” said Stan Magidson, chair of the CSA and chair and CEO of the Alberta Securities Commission, in a release.

“We are working towards disclosure requirements that support the assessment of sustainability-related risks, reduce market fragmentation and contribute to efficient capital markets while considering the needs and capabilities of issuers of different sizes,” he said.