After more than 130 stakeholders provided feedback on proposed National Instrument 51-107 Disclosure of Climate-related Matters, the Canadian Securities Administrators (CSA) says it is actively reconsidering the climate disclosure rule in light of international developments in the area. 

Specifically, they say the United States Securities and Exchange Commission (SEC) proposed amendments to rules that would require registrants to provide certain climate related information in their registration statements and annual reports. The second international development the CSA cites in its decision, is a general standard proposed by the International Sustainability Standards Board (ISSB) for the disclosure of sustainability-related financial information and other specific climate-related disclosures. 

The CSA says while its own rule, along with the SEC’s rule and the ISSB proposals are all largely based on recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), they say some substantive differences exist. The CSA says it plans to analyze the differences, along with the letters received in response to its own proposed rule and along with Canadian stakeholder feedback that was submitted directly to the SEC and the ISSB. 

“We are working towards disclosure requirements that support the assessment of sustainability-related risks, reduce market fragmentation and contribute to efficient capital markets while considering the needs and capabilities of issuers of different sizes,” says Stan Magidson, CSA chair and chair of the Alberta Securities Commission.