Canadian Securities Administrators pauses work on mandatory climate disclosure rule and diversity disclosure amendments

The Canadian Securities Administrators (CSA) has paused its work on developing a new mandatory climate-related disclosure rule and on amendments to existing diversity-related disclosure requirements, citing rapidly changing U.S. and global conditions and related uncertainty and competitiveness concerns for Canadian issuers. Existing securities law requirements to disclose material climate-related risks remain in place, and the CSA pointed issuers to the Canadian Sustainability Standards Board’s December 2024 sustainability standards as a voluntary framework that is generally aligned with the International Sustainability Standards Board standards. On diversity, non-venture issuers must continue to disclose the representation of women on boards and in executive officer positions under current rules. The CSA will monitor domestic and international developments, expects to revisit both projects in future years with appropriate notice, and will continue oversight of issuer disclosures, including action on misleading statements such as greenwashing, alongside further guidance as needed.