Strategic Focus: Understanding ESG And Sustainability Disclosure Requirements In Canada

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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

About the authors

Jessica Pransky

Principal Analyst
Jessica is a Principal Analyst in the Verdantix ESG & Sustainability practice, which she joined in 2022. Her current research agenda covers ESG reporting and data management software, ESG solutions for investors, and risk in ESG and sustainability. Prior to joining Verdantix, Jessica worked at Ramboll, focusing on ESG risk and opportunity identification for mergers and acquisitions, as well as EHS due diligence. Jessica has previously held roles evaluating water resource allocation for a state municipality and ensuring EHS compliance for GE Aviation. She holds a BS from Tufts University and an MEng from Johns Hopkins University focused on environmental engineering, as well as an MBA from Boston University.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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