The Canadian Securities Administrators (CSA) has announced a pause on the rollout of mandatory climate-related disclosure requirements, citing shifting global conditions, economic pressures, and rising competitiveness concerns for Canadian companies. The delay also extends to proposed amendments around diversity disclosures.
“In recent months, the global economic and geopolitical landscape has rapidly and significantly changed, resulting in increased uncertainty and rising competitiveness concerns for Canadian issuers,” said Stan Magidson, Chair of the CSA and CEO of the Alberta Securities Commission.
While putting mandatory rules on hold, the CSA reaffirmed that material climate-related risks must still be disclosed under existing securities laws. It also committed to continuing enforcement where disclosures fall short or appear misleading, including addressing instances of greenwashing.
The move comes as the Canadian Sustainability Standards Board (CSSB) advances its voluntary sustainability disclosure framework. Introduced in December 2024, the CSSB’s CSDS 1 and CSDS 2 standards align closely with global norms, including those of the International Sustainability Standards Board (ISSB). The CSSB will continue to promote voluntary adoption of its standards, offering guidance to help issuers stay aligned with international expectations.
Existing diversity reporting requirements under National Instrument 58-101 remain in effect, mandating that non-venture issuers disclose the representation of women in leadership roles. The CSA confirmed that it will monitor ongoing climate and diversity disclosures and revisit both regulatory tracks “in future years,” providing advance notice before resuming formal rulemaking.
