Canada
Canada’s Office of the Superintendent of Financial Institutions (OSFI)
Canadian Securities Administrators (CSA)
Since 2021, the Canadian Securities Administrators (CSA) has introduced several key updates regarding ESG and climate-related disclosures. These developments are aimed at enhancing transparency and accountability in how companies report on environmental, social, and governance (ESG) metrics. Here are some of the significant announcements:
Support for the International Sustainability Standards Board (ISSB) (2023)
The CSA endorsed the ISSB’s sustainability disclosure standards, which were published in June 2023. The CSA aims to align Canada’s regulatory framework with these global standards to ensure consistency in climate-related financial reporting.
Guidance on ESG-related Fund Disclosures (2022)
In response to the growing trend of ESG investment funds, the CSA issued guidance to prevent “greenwashing” (misleading claims about sustainability). This guidance targets funds that incorporate ESG strategies or objectives, ensuring their disclosures are consistent with the actual sustainability practices being implemented.
Proposed National Instrument 51-107 on Climate-Related Disclosures (2021)
The CSA proposed new regulations that would require publicly traded companies in Canada to disclose climate-related information, including governance, risk management, and specific metrics such as Scope 1 (direct), Scope 2 (indirect from energy), and optionally Scope 3 (all other indirect) greenhouse gas (GHG) emissions. This proposal is based on the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) and is designed to standardize climate risk reporting across industries
United States
Since 2010, the US…