Strategic Focus: Understanding ESG And Sustainability Disclosure Requirements In Canada

Report

Corporate Sustainability Leaders

Jessica Pransky

Kim Knickle

19 Jun, 2024

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Executive Summary

ESG and sustainability-related disclosures are gaining momentum in Canada. Key requirements span a wide variety of sustainability topics, such as disclosures relating to climate change, carbon emissions, plastic use and disposal, workplace diversity, and human rights within the supply chain. In introducing this legislation, the Government of Canada is responding to global pressures to improve transparency, as well as to calls to protect the country’s vast natural resources and diverse communities. This report provides executives with a summary of key reporting obligations that will impact Canadian firms, alongside ways that firms can prepare for and navigate the fast-changing regulatory landscape.

Table of contents

ESG and sustainability regulations are on the rise in Canada
Canada aims to protect its natural resources from environmental threats
Canada is moving ahead with disclosures focused on firms’ employees and supply chains
Canadian firms must pay attention to the global reporting environment
In a fast-moving regulatory environment, firms should start preparing for ESG disclosures now

Table of figures

Figure 1. Key current and pending climate-related guidance and disclosure requirements in Canada
Figure 2. Core components of Canada’s S-211 bill
Figure 3. Anti-greenwashing measures incorporated into Canadian legislation
Figure 4. High-level comparison of the CSA’s climate proposal with other key legislation

Organisations mentioned

Addenda Capital, California Air Resources Board (CARB), Canada Border Services Agency (CBSA), Canada National Supply Chain Office, Canada Sustainable Finance Action Council (SFAC), Canadian Climate Institute, Canadian Gas Association, Canadian Securities Administrators (CSA), Canadian Sustainability Standards Board (CSSB), Clean50, Climate Engagement Canada, Competition Bureau Canada, Dairy Farmers of Canada, Electricity Canada, FortisAlberta, Glencore, Government of Canada, Hydro Ottawa, iA Financial Group, International Sustainability Standards Board (ISSB), Keurig, LSEG (formerly Refinitiv), lululemon, Lundin Gold, Mining Association of Canada, Natural Resources Canada, Pan American Silver, Public Safety Canada, PwC, Senate of Canada, SLR Consulting, Sustainable Forestry Initiative, Task Force on Climate-related Financial Disclosures (TCFD), Toronto Hydro Corporation, UK Financial Conduct Authority (FCA), United Nations (UN), University Pension Plan, US Securities and Exchange Commission (SEC)

About the Authors

Jessica Pransky

Principal Analyst

Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises ...

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Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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