Governance Briefing — November 8, 2024
Canada’s sustainability standards board finalised CSDS 1 and CSDS 2, placing governance disclosure and board accountability at the centre of climate and sustainability reporting.
Executive briefing: On 8 November 2024 the Canadian Sustainability Standards Board (CSSB) issued Canadian Sustainability Disclosure Standards (CSDS) 1 and 2. The standards mirror IFRS S1/S2 and require entities to describe governance structures overseeing sustainability and climate-related risks, with board-approved oversight narratives.
Key governance signals
- Governance section prominence. Entities must disclose board and management responsibilities, committees, and reporting lines for sustainability matters.
- Scenario oversight. CSDS 2 emphasises board review of scenario analysis, risk appetite, and transition planning for climate risks.
- Canadian-specific guidance. The CSSB provides application guidance for Indigenous engagement and supply-chain disclosures, extending governance scope.
Action checklist
- Align board charters and management accountability maps with CSDS governance disclosure requirements.
- Integrate climate scenario analysis outputs into enterprise risk dashboards reviewed by directors.
- Plan limited assurance readiness by coordinating with auditors on sustainability data controls and documentation.
Sources
- CSSB news release announcing CSDS 1 and CSDS 2
- Canadian Sustainability Disclosure Standard 1
- Canadian Sustainability Disclosure Standard 2
Zeph Tech helps Canadian issuers coordinate board governance, scenario analysis, and assurance programs aligned with CSDS adoption.