CPA Canada in its pre-budget recommendations has urged the federal government to prioritise sustainable disclosure standards, responsible AI practices and boost productivity.

The Canadian Sustainability Disclosure Standards (CSDSs), which align with those of the International Sustainability Standards Board (ISSB), were introduced in December 2024.

While this marks a significant advancement, CPA Canada emphasised the need for widespread adoption across the nation.

The organisation urged the federal government “to lead a coordinated national effort to adopt the CSDSs as a consistent baseline across the country”.

Additionally, education and training focused on climate-related reporting are deemed essential for organisations to thrive in a more transparent and sustainable economy.

CPA Canada also voiced concerns regarding Canada’s productivity levels. Despite a recent recovery in the Canadian economy, improvements in living standards have not been observed, it said. 

Canada’s productivity continues to lag behind that of other advanced economies. Recent trade disputes with the US have exacerbated challenges, disrupting supply chains as well as increasing costs, which posed significant risks to economic output.

CPA Canada chief economist David-Alexandre Brassard said: “The challenge we have is that when you want to invest in Canada, you are competing with the US.”

To enhance economic resilience, CPA Canada has recommended the removal of barriers to interprovincial trade and labour mobility, which could address inefficiencies that currently fragment Canada’s internal market.

The organisation suggested that collaboration between provincial and federal governments could lead to standardised laws and regulations across Canada, resulting in a more integrated and efficient economy.

Brassard noted that while the federal government has made progress in improving business conditions, including addressing regulatory issues and interprovincial barriers, the tax burden remains higher in Canada.

“That is something the federal government needs to keep in mind if they want to incentivise investments [at home],” Brassard remarked.

In terms of AI legislation, Canada is currently behind regions such as the EU, which has established comprehensive regulatory frameworks for AI.

CPA Canada AI lead Melissa Robertson said: “As other countries ramp up their efforts to grow their AI sectors, it is more important than ever to keep supporting Canadian AI literacy and adoption along with Canadian-made tech, computing infrastructure and homegrown talent.

“Trust, safety and security are still issues to be tackled, and it is imperative that Canada does not lose sight of this.”

CPA Canada added that “the federal government must advance responsible AI adoption by strengthening governance, managing risks and promoting ethical innovation”.

Engaging with experts including chartered professional accountants with expertise in data integrity and assurance, and establishing clear standards for managing AI-related risks are crucial for building public trust in AI systems.

The lack of a spring budget and the postponement of appointing a new Parliamentary Budget Officer have raised concerns regarding the government’s commitment to fiscal accountability.

“Canadians are best served by financial information that is consistent, understandable and independently verifiable,” CPA Canada added.

The absence of a national framework to protect and support whistleblowers, who play a critical role in identifying economic crimes, was also highlighted as a significant gap.

CPA Canada has called on the federal government to establish such a framework, enabling individuals to report improper or risky practices without fear of retaliation.