SUSTAINABILITY REPORTING
Canada Standards - 2022 August - CSA's Proposed Climate-related and ESG Disclosure Requirement
Article Highlights
On October 18, 2021, Canadian Securities Administrators provided new disclosure requirements with respect to climate-related matters for all reporting issues except those in certain categories.
The CSA outlines disclosure practices of investment funds regarding environment, social and governance (“ESG”) matters to assist issuers and investors.
On October 18, 2021, Canadian Securities Administrators (CSA) published proposed National Instrument 51-1-7 Disclosure of Climate Related Matters (“Proposed Instrument” or “NI 51-107”) and Companion Policy 51-107CP Disclosure of Climate-related Matters (“Proposed Policy”).
On October 18, 2021, the CSA also released the Consultation - Climate related Disclosure Update and CSA Notice and Request for Comment Proposed National Instrument 51-107 Disclosure of Climate-related Matters (“Consultation”).
On January 19, 2022, the CSA published Staff Notice 81-334 ESG-Related Investment Fund Disclosure (“Investment Fund Notice”).
On February 16, 2022, public comment period ended for the Proposed Instrument and Proposed Policy.
The Proposed Instrument provides new disclosure requirements with respect to climate-related matters for all reporting issues except those in certain categories. The Proposed Instrument does not apply to investment funds.
The Investment Fund Notice outlines the disclosure practices of investment funds regarding environment, social and governance (“ESG”) matters.
The Proposed Instrument is to provide the following:
Improve global capital market access to issuers;
Make more informed investment decisions for investors;
Garner a more equitable market for issuers; and
Reduce costs of reporting based on multiple disclosure frameworks.
Rules Going Into Force
Proposed Instrument anticipated to come into force prior to December 31, 2022. Based on the proposed “into force” date, an issue would need to include the climate-related disclosures in annual filings made before 2024 for non-venture issuers and in early 2026 for venture issuers.
Key Takeaways
Tasks to help you prepare
There continues to be greater scrutiny from regulators for investors to make better investment decisions and provide issuers with greater access to global capital markets.
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