CPA Canada’s president and CEO Pamela Steer has expressed disappointment over the Canadian Securities Administrators’ (CSA) recent decision to pause its work on mandatory climate disclosure rules.
She views this as a “setback” that could potentially harm market transparency and Canada’s position in the global market.
In a press release, the CSA explained that the pause is intended to allow Canadian markets and issuers time to adjust to recent changes in the US and other global markets.
However, Steer argues that consistent and comparable sustainability reporting is crucial for investors to make informed decisions.
Currently, the lack of standardised reporting requirements means that Canadian organisations report climate risks in varied ways.
This inconsistency complicates the process for investors trying to evaluate risk exposure and places the onus of interpretation on them.
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By GlobalDataSteer said: “In a global economy where assessing climate risk is increasingly a prerequisite for investment, this decision risks making our markets less attractive to international capital that we urgently need to drive innovation, competitiveness and economic growth.”
Institutional investors have suggested that mandatory reporting could enhance Canada’s appeal in the global capital market.
Although the pause might allow businesses to strengthen their internal capacity for future reporting, CPA Canada cautions that additional delays could erode investor confidence and hinder progress.
The CSA has committed to keeping an eye on both domestic and international regulatory developments concerning climate-related and diversity-related disclosures.
It plans to revisit these projects in the coming years to establish final requirements for issuers.
Issuers will receive adequate notice before any changes are made to the status of these projects.
In the meantime, the CSA will continue to monitor issuer disclosure practices and address any misleading information, including greenwashing.
In February 2025, CPA Canada solidified its international relations by signing a memorandum of understanding with the Institute of Chartered Accountants of Pakistan.
This agreement creates a reciprocal membership pathway, enabling Pakistan accountants to obtain the Canadian CPA designation.
