Canadian Consultation: Agenda Priorities for Expanding the ISSB Standards

Jun 12, 2023

On June 12, 2023, FRAS Canada issued its Exposure Draft which corresponds to the International Sustainability Standards Board’s Consultation on Agenda Priorities. FRAS Canada seek feedback on the ISSB’s priorities for a two-year work plan, starting in 2024. Feedback from this consultation will inform the ISSB's priorities, allocation of its time and resources, and more importantly, shape future sustainability-related financial disclosure standards.

The standard-setter is seeking feedback on three key areas:

  • the strategic direction and balance of the ISSB’s activities;
  • the suitability of criteria for assessing which sustainability-related matters (including topics, industries and activities) to prioritize and add to the ISSB’s work plan; and
  • a proposed list of new research and standard-setting projects that could be added to the ISSB’s work plan.

Refer to the consultation on the FRAS Canada website.

Canadian Consultation: International Applicability of the SASB Standards

Jun 12, 2023

On June 12, 2023, FRAS Canada has published its Exposure Draft which corresponds to the International Sustainability Standards Board’s own Exposure Draft, Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates released on May 23, 2023. FRAS Canada expects gaining feedback on the proposed amendments designed to enhance the international applicability of the SASB Standards. The amendments are intended to make the SASB Standards applicable in any jurisdiction and suitable for entities applying IFRS Accounting Standards or any other generally accepted accounting principle (GAAP).

The ISSB seeks feedback on the following components:

  • the objective and effectiveness of the proposed methodology to update SASB Standards metrics
  • the hierarchy, impacts, and criteria associated with the five proposed revision approaches;
  • the proposed methodology to update the SASB Standards Taxonomy; and
  • the considerations to inform future SASB Standards refinement.

Re­view consultation on the FRAS Canada website.

Canadian Securities Administrators statement on proposed climate-related disclosure requirements

Jul 05, 2023

On July 5, 2023, the Canadian Securities Administrators (CSA) welcomed the publication on June 26, 2023, of the International Sustainability Standards Board (ISSB)’s first two sustainability disclosure standards: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures (together, the ISSB Standards).

The CSA commended the ISSB for developing a global framework for investor-focused disclosure that is responsive to market demand for more consistent and comparable disclosures. The CSA is also encouraged by the ISSB’s proposed capacity building efforts to support adoption of the ISSB Standards.

Re­view the news release on CSA's website.

Canadians show considerable interest in the ISSB’s Exposure Drafts on sustainability

Feb 21, 2023

In February 2023, the Auditing and Assurance Oversight Committee (AASOC) posted the minutes of their public meeting held on September 26, 2022.

During the meeting, Lisa French, Vice-President, Sustainability Standards, CPA Canada presented a two-part update on the Canadian Sustainability Standards team’s activities. The first part focused on the International Sustainability Standards Board’s (ISSB) Exposure Drafts and the second part focused on efforts to build the Canadian Sustainability Standards Board (CSSB).

As part of her presentation, Ms. French noted that the ISSB received 735 submissions to the Exposure Draft IFRS S1 (with 75 Canadian responses) and 700 submissions to the Exposure Draft IFRS S2 (with 70 Canadian response). The Canadian responses made up 10 per cent of the global feedback. Responses from industry associations, investors, and preparers made up two-thirds of Canadian respondents. The remaining one-third came from not-for-profit, governments, supporting entities, professional bodies, and academia.

For further details refer to the minutes of the AASOC meeting on September 26, 2022

Charles-Antoine St-Jean named Chair of the Canadian Sustainability Standards Board; first members appointed

Apr 12, 2023

On April 12, 2023, the Canadian Sustainability Standards Board’s (CSSB) first-ever chair and initial members have been appointed, setting the stage for supporting the adoption of sustainability disclosure standards in Canada.

The CSSB will be led by Charles-Antoine St-Jean, FCPA, FCA, who is based in Quebec and most recently served as the IFRS Foundation regional director-Americas, where he assisted with the implementation of ISSB operations in Canada and the Americas.

The other initial members of the CSSB are:

  • Bindu Dhaliwal, Senior Vice-President, Corporate Governance & ESG, CIBC;
  • Alyson Slater, Managing Director and Head of Sustainable Investment in Canada, Public Markets, Manulife Investment Management; and
  • Raylene Whitford, Chair, Indigenous Advisory Council, TC Energy Ltd. and former Partner, Global Indigenous Community of Practice Lead, Deloitte Canada.

Re­view the press release  on the CSSB website.

FSB calls ISSB standards culmination of TCFD work

Sep 06, 2023

On September 6, 2023, a letter of the Chair of the Financial Stability Board (FSB) was submitted to G20 Leaders outlining the work the FSB is undertaking on enhancing the resilience of the financial system to structural change ahead of the meeting on September 9-10, 2023.

The letter also notes the risks that climate change could pose to financial stability. In that context, the letter notes:

“An important milestone in the FSB’s Climate Roadmap has been the publication of the International Sustainability Standards Board (ISSB)’s disclosure standards, which have been endorsed by the International Organization of Securities Commissions (IOSCO). The ISSB standards serve as a global framework for sustainability disclosures and, when implemented, will strengthen the comparability, consistency, and decision-usefulness of climate-related financial disclosures around the world. These standards can be seen as a culmination of the work of the FSB’s Task Force on Climate-related Financial Disclosures (TCFD).”

The FSB states that it will work with the ISSB and other relevant bodies to promote the timely and wide use of the standards.

Access the letter on the FSB website.

G7 underlines its commitment to global sustainability disclosures

May 22, 2023

Following the G7 Leaders' Summit 2023 on May 19- 21, 2023, a joint declaration was published by the G7 that stresses the need for globally interoperable sustainability disclosure frameworks.

The declaration mentions the work and progress of the International Sustainability Standards Board (ISSB) and highlights the need of sustainability disclosures for mobilizing private sector finance to support the transition to a sustainable economy.

It notes: “We (the G7)  underline our commitment to consistent, comparable and reliable disclosure of information on sustainability including climate. We support the International Sustainability Standards Board (ISSB) finalizing the standards for general reporting on sustainability and for climate-related disclosures and working toward achieving globally interoperable sustainability disclosure frameworks. We also look forward to the ISSB’s future work on disclosure on biodiversity and human capital, in line with its work plan consultation.

Re­view the full statement on Ministry of Foreign Affairs of Japan website.

G20 Leaders welcome issuance of ISSB standards

Sep 12, 2023

On September 12, 2023, the G20 issued the final declaration following the G20 Leaders meeting held in New Delhi on September 9-10, 2023.

In particular, the G20 concluded that flexibility will contribute to a global solution in sustainability reporting. The declaration notes:

“We welcome the finalization of the sustainability and climate-related disclosure standards published by the International Sustainability Standards Board (ISSB) in June 2023, which provide the mechanisms that address proportionality and promote interoperability. It is important that flexibility, to take into account country-specific circumstances, is preserved in the implementation of those standards. When put into practice as above, those standards will help support globally comparable and reliable disclosures.”

Review the declaration on the European council website.

IFAC Calls on G20 Leaders to Lead on Sustainable and Inclusive Growth

Aug 07, 2023

On August 7, 2023, the International Federation of Accountants (IFAC) released "Working Together for Sustainable and Inclusive Growth: G20 Call to Action 2023" urging G20 leaders to approach sustainability, the public sector, small- and medium-sized entities (SMEs), and education with an inclusive approach to make sure that the opportunities of today and tomorrow are shared, and that economic and social development are truly sustainable.

IFAC calls on G20 leaders to:

  • Make Sustainability A Reality, Not Just a Goal
  • Support Public Financial Management and Fight Corruption
  • Create an Environment for SME Growth and Innovation
  • No Inclusive Growth without Education

Review the call to action on the IFAC website.

IFAC calls on ISSB and IASB to jointly develop a global reporting baseline

Sep 04, 2023

On September 4, 2023, the International Federation of Accountants (IFAC) commented on the ISSB's consultation on its future work program. The ISSB's request for information had also contained a section with questions on the collaboration with the IASB.

Generally, the IFAC response to the request for information notes that IFAC supports the ISSB’s focus on high-quality implementation of IFRS S1 and IFRS S2 so that jurisdictions will more readily adopt ISSB requirements. IFAC also urges the ISSB and the IFRS Foundation to secure the resources necessary (funding, staff, volunteer expertise, etc.) to continue to move with pace in new research and standard-setting activities related to the sustainability topic areas identified in the consultation.

Access the comment letter on the IFRS Foundation website.

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