Canada Sustainability Reporting Regulation
In March 2023, the Office of the Superintendent of Financial Institutions (OSFI) issued its final Guideline B-15, Climate Risk Management, which requires Federally Regulated Financial Institutions (FRFIs) to manage and report climate-related risks. Large FRFIs must begin reporting for fiscal year-end 2024, while smaller FRFIs start a year later.
The Canadian Securities Administrator (CSA) issued its proposed draft climate-related disclosure (NI 51-107) rule in October 2021, however in April 2025 the CSA paused its work on developing a final rule.
Who’s impacted?
CSA NI 51-107: Venture and non-venture issuers
OSFI Guideline B-15: All federally regulated financial institutions, except foreign bank branches
What’s the latest?
CSA: On April 23, 2025, the CSA announced it is pausing its work on developing a new mandatory climate-related disclosure rule to support Canadian markets and issuers in adapting to the economic uncertainty due to recent developments in the U.S. and globally. The CSA will monitor domestic and international regulatory changes and revisit the climate-related disclosure project to finalize requirements in the future.
In December 2024, the CSA confirmed its revised rule would consider the Canadian Sustainability Standards Board’s (CSSB) standards.
OSFI: On March 7, 2025, OSFI updated its Guideline B-15 on climate-related disclosures. Key revisions to Chapter 2, Annex 2-2 include the implementation date for disclosing Scope 3 greenhouse gas emissions to align with the CSSB standards, now set for fiscal year 2028.
What do Canadian CPAs need to know?
OSFI’s climate-related regulation, B-15 is already in force. Certain federally regulated financial institutions with fiscal periods ending on or after October 1, 2024, have already began reporting.
It is not just companies that are regulated by the OSFI that will be impacted. These regulations may require certain disclosures pertaining to the regulated entity’s value chain, which means companies that sit within the value chain of a regulated entity may be asked to provide information to the regulated entity. Refer to our article, Why Businesses Can’t Ignore Sustainability for more information.
Where can I learn more?
For more information, please refer to our At a Glance: Sustainability Reporting Standards and Regulations and related FAQs.
You can also refer to:
CSA Announcement, April 23, 2025
OSFI’s Letter to Industry – We are Updating Guideline B-15 for the Final CSSB Standards