The Canadian Sustainability Standards Board (CSSB) proposes, subject to feedback on the Exposure Draft, “Proposed Amendments to CSDS 2: Amendments to Greenhouse Gas (GHG) Emissions Disclosures,” to adopt the International Sustainability Standards Board (ISSB), with appropriate Canadian modifications. The ISSB’s amendments update IFRS S2, Climate-related Disclosures. Adopting them would result in corresponding amendments to Canadian Sustainability Disclosure Standards (CSDS) 2, Climate-related Disclosures. In addition, the Basis for Conclusions on IFRS S2 included in the CPA Canada Handbook – Sustainability (the Handbook) would be modified for the ISSB’s amendments.
This Exposure Draft consists of:
- the background;
- the CSSB’s due process applicable to IFRS Sustainability Disclosure Standards;
- the proposed Canadian modifications;
- matters raised by Canadians; and
- questions for respondents.
In January 2025, the ISSB proposed amendments to IFRS S2, and released its Exposure Draft, “Amendments to Greenhouse Gas Emissions Disclosures – Proposed amendments to IFRS S2,” and related Basis for Conclusions in April 2025. The ISSB’s Exposure Draft suggested providing additional relief and clarifying existing relief from specific GHG emissions disclosure requirements.
In response to the ISSB’s Exposure Draft, the CSSB and other Canadian respondents raised concerns about granting permanent relief that would allow entities to exclude Scope 3 Category 15 GHG emissions associated with facilitated and insurance-associated activities from their disclosures. Non-Canadian respondents expressed similar concerns. These concerns reflect the importance of ensuring completeness in the disclosure of material GHG emissions, including material Scope 3 emissions, and the rapidly evolving development of measurement methodologies for GHG emissions associated with financial activities. The ISSB’s final amendments to IFRS S2, published in December 2025, maintained permanent relief from disclosure of insurance-associated and facilitated emissions.
The CSSB proposes a Canadian modification to the effective date and seeks input as part of this Exposure Draft on the best path forward to serve the Canadian public interest.
On the issue of permanent relief to exclude Scope 3 Category 15 GHG emissions associated with facilitated emissions and insurance-associated activities from entity disclosures, the CSSB is not proposing a Canadian modification. The Board seeks input as part of this Exposure Draft on the best path forward to serve the Canadian public interest.
Based on your feedback, the CSSB will consider modifications to CSDS 2 before finalizing it in the fourth quarter of 2026. Your input is crucial to meet the needs of sustainability standard-setting in Canada. We look forward to your insights!
Who should participate?
We welcome input from all interested and affected parties, including:
- Banking institutions
- Insurance organizations
- Asset management
- Regulators
- Indigenous Rightsholders, Leaders, and Organizations
- Climate advocacy organizations
- Preparers (other than financial sector)