Canada’s top securities regulators have paused efforts to introduce mandatory climate-related and diversity-related disclosure rules, marking a notable shift in the country’s sustainability reporting agenda.
According to ESG Today, the CSA, an umbrella group representing provincial and territorial regulators, said the decision was made to support market stability as global regulatory approaches evolve.
The move comes as major jurisdictions adjust their own sustainability disclosure frameworks. In the EU, policymakers are advancing an “Omnibus” process aimed at simplifying, delaying or reducing requirements under the Corporate Sustainability Reporting Directive (CSRD), while in the U.S., the Securities and Exchange Commission is reportedly pulling back from its proposed climate disclosure regulations entirely.
“In recent months, the global economic and geopolitical landscape has rapidly and significantly changed, resulting in increased uncertainty and rising competitiveness concerns for Canadian issuers. In response, the CSA is focusing on initiatives to make Canadian markets more competitive, efficient and resilient,” CSA chair and Alberta Securities Commission chair and CEO Stan Magidson said.
The decision to hit pause comes only months after the Canadian Sustainability Standards Board (CSSB) finalised national guidelines based on the International Sustainability Standards Board (ISSB) framework. At the time, the CSA appeared to be preparing for a mandatory rollout aligned with the CSSB’s newly released standards.
In its latest statement, however, the CSA acknowledged the CSSB’s work as offering a “useful voluntary disclosure framework for sustainability and climate-related disclosure,” encouraging companies to refer to it but stopping short of making it compulsory.
Wendy Berman, incoming chair of the CSSB, noted: “We recognize that regulatory approaches may evolve in response to market conditions, but the demand for credible, comparable sustainability information continues to grow – both globally and at home.”
The announcement has drawn criticism from environmental and sustainability advocates. Julie Segal, senior manager of climate finance at Environmental Defence Canada, said: “The CSA is being regressive. Postponing requirements for businesses to get prepared for climate change and align with positive climate action will only leave businesses less prepared, investors less informed, and Canada’s economy less competitive. Protecting Canada means requiring full climate risk disclosures and credible transition plans.”
The CSA said it will continue monitoring global regulatory developments and plans to revisit both the climate-related and diversity-related disclosure initiatives “in future years.”
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
Investors
The following investor(s) were tagged in this article.