Canadian Global Alignment With Sustainability Standards
Author(s): Scott Douglas Jacobsen
Publication (Outlet/Website): The Good Men Project
Publication Date (yyyy/mm/dd): 2025/02/11
Bruce Marchand is the Interim Chair of the Canadian Sustainability Standards Board (CSSB), leading the organization in advancing sustainability reporting aligned with international standards. Under his guidance, the CSSB launched the first Canadian Sustainability Disclosure Standards (CSDSs), fostering transparency and informed decision-making through high-quality disclosures. Bruce emphasizes aligning global frameworks with Canada’s unique context, ensuring market readiness and public trust. Committed to inclusivity, he supports integrating Indigenous perspectives into sustainability standards. His leadership reflects a dedication to advancing Canada’s sustainability framework, addressing climate-related risks, and enhancing corporate accountability in a rapidly evolving global landscape. The Canadian Sustainability Standards Board (CSSB) launched the Canadian Sustainability Disclosure Standards (CSDSs) to address growing global demands for consistent sustainability reporting and to reduce reporting burdens for organizations. CSDS 1 and CSDS 2 align with international standards from the International Sustainability Standards Board (ISSB) while incorporating Canadian-specific modifications, such as transition reliefs. Developed through extensive consultation, these standards prioritize Canadian public interest and Indigenous engagement. Voluntary unless mandated, adoption is driven by regulatory bodies and market forces. Feedback from the Exposure Drafts phase significantly influenced the standards, ensuring global alignment and responsiveness to Canada’s unique needs.
Scott Douglas Jacobsen: What prompted the Canadian Sustainability Standards Board (CSSB) to launch the Canadian Sustainability Disclosure Standards (CSDSs)?
Bruce Marchand: The CSSB was established in 2022 as a Canadian response to growing global demand for timely and comparable decision-useful sustainability information from primary users (investors, lenders and creditors).
At the same time, many companies already reporting on sustainability are looking to reduce their reporting burden and are welcoming an international baseline standard that consolidates other frameworks.
This led to the creation of the International Sustainability Standards Board (ISSB) in 2021 at COP26. In June 2023, the ISSB finalized IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. The CSSB was formed to address those needs by advancing Canadian Sustainability Disclosure Standards that align with the global baseline standards developed by the International Sustainability Standards Board (ISSB) – but with modifications needed to serve the Canadian public interest.
The CSSB created and issued CSDS 1 (based on IFRS S1) and CSDS 2 (based on IFRS S2) help ensure that Canadian organizations can meet international expectations while addressing Canadian needs.
Jacobsen: Why weren’t these present earlier?
Marchand: As noted, sustainability reporting has evolved significantly in recent years, driven by growing demands for consistent and comparable sustainability-related information.
The timing reflects the need for alignment with the ISSB’s work and the extensive consultation required to ensure the standards meet Canada’s public interest needs.
The CSSB’s creation in 2022 provided the standard-setting structure in Canada to address these demands in a thoughtful and robust manner.
How do CSDS 1 and CSDS 2 align with the International Sustainability Standards Board (ISSB)?
CSDS 1 and CSDS 2 are closely aligned with the ISSB’s global baseline standards, ensuring Canadian organizations benefit from international consistency.
However, the CSSB has introduced targeted modifications – consisting of transition reliefs – to address Canadian public interest considerations, such as the readiness of companies to disclose this information.
Jacobsen: What were the key factors for the development of the Criteria for Modification Framework in Canada?
Marchand: The Criteria for Modification Framework ensures that any deviations from the ISSB’s global baseline standards address Canadian-specific needs while maintaining international comparability and consistency.
It was developed with significant input from diverse parties, reflecting the importance of balancing global alignment with the needs of Canadian interested and affected parties.
Jacobsen: What is the rationale behind the transition relief modifications in the final standards?
Marchand: The transition relief measures introduced are designed to address challenges Canadian organizations preparing this information face, such as capacity and resource constraints, data quality, and the ongoing development of international data methodologies.
For example, additional time is provided for Scope 3 GHG emissions reporting and quantitative climate scenario analysis. These measures help ensure preparers have the time to build systems and processes to deliver meaningful disclosures without compromising quality.
Jacobsen: How do the standards address the needs of Indigenous Peoples in Canada?
Marchand: Indigenous feedback was critical to the development of CSDS 1 and CSDS 2 and the Criteria for Modification Framework. The CSSB acknowledges the importance of further engagement and has identified advancing the inclusion of Indigenous Peoples as a key priority in its proposed 2025–2028 Strategic Plan.
This reflects a commitment to meaningful collaboration and the integration of Indigenous perspectives in future work.
Jacobsen: What is the role of regulators and governments in CSDS adoption across Canadian industries?
Marchand: CSDS 1 and CSDS 2 are voluntary unless mandated by regulators or governments.
The CSSB works closely with regulatory bodies, such as the Canadian Securities Administrators and the Office of the Superintendent of Financial Institutions, to support adoption. Market-driven forces, like investor demands and supply chain requirements, are also expected to drive widespread use of the standards.
Jacobsen: How did the feedback to the CSSB Exposure Drafts phase influence the final standards?
Marchand: Respondents’ feedback significantly shaped the final standards.
For example, feedback on the alignment of sustainability reporting with the timing of financial statement reporting and on Scope 3 GHG emissions led to an extended transition period for each of those areas. Concerns about scenario analysis informed the phased implementation for quantitative requirements. The CSSB’s Bases for Conclusions document outlines how respondents’ input informed specific decisions, ensuring the standards serve Canadian public interest while aligning globally.
Jacobsen: Thank you for the opportunity and your time, Bruce.
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