CSA Issues Guidance on Climate Change-Related Disclosure

The Canadian Securities Administrators (CSA) announced the publication of CSA Staff Notice 51-358 Reporting of Climate Change-related Risks (the Notice), which is intended to assist companies in identifying and improving their disclosure of material risks posed by climate change.

The Notice clarifies existing legal requirements and does not create any new ones. It reinforces and expands upon previous guidance provided by the CSA. The guidance in the Notice was based on the CSA’s research, review and consultations on issuers’ disclosure of risks and financial impacts associated with climate change. The CSA had found that many investors, particularly institutional investors, have become increasingly focused on climate change-related risks and have expressed concern that they are receiving insufficient disclosure of these risks from issuers.

In the Notice, the CSA recognizes that, while this disclosure is important for investors to make informed decisions, it presents challenges and potential burdens for all issuers. According to the CSA, the Notice is intended to help issuers, particularly smaller issuers, by providing guidance on preparing the disclosure of material climate change-related risks.

The Notice can be found here.

DISCLAIMER: This post is intended to convey general information about legal issues and developments as of the date above. It does not constitute legal advice and must not be treated or relied on as such.