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Key things to know about ESG and new disclosure requirements

The new IFRS Sustainability Disclosure Standards will impact businesses around the world in a myriad of ways, but what does it mean for you?

Whether a business has a formal set of policies in place or not, Environmental, Social, and Governance (ESG) strategies are at the core of everything they do.

In today’s rapidly changing world, businesses are facing increasing pressure from stakeholders to address their Environmental, Social & Governance (ESG) performance. Navigating this dynamic environment and optimizing capital access means being agile and resilient as expectations change. 

In June, the International Sustainability Standards Board (ISSB) announced their first set of standards through the IFRS foundation – the IFRS Sustainability Disclosure Standards – outlining reporting requirements on sustainability-related financial and climate information starting on or before January 1, 2024.

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November 2021

Establishment of International Sustainability Standards Board (ISSB)

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June 2022

Canadian Sustainability Standards Board (CSSB) is approved. Ongoing work is being done to develop standards applicable to Canada

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June 2023

International sustainability reporting standards released by IFRS Foundation

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January 2024

Annual reporting comes into effect for IFRS S1 and IFRS S2

These standards, the IFRS S1 and IFRS S2, outline a business’s responsibility to disclose sustainability-related information annually, specifically looking at risks and opportunities that exist within their sustainability framework and strategies. There is a one-year relief for IFRS S1 reporting as the focus is on the climate-related IFRS S2 as top priority.

Reports must examine and disclose a company’s governance structure, ESG strategy, risk management policies, and the metrics or targets they hope to achieve from the lens of their sustainability-related financial and climate plans, among others.

The ISSB Standards establish a single, global baseline which will allow companies and investors to standardize sustainability disclosures for the capital markets. The ISSB’s work has received strong support from the International Organization of Securities Commissions meaning public companies globally will soon need to adhere to these new standards. The CSSB has expressed their support for and is currently collaborating with Canada’s regulatory bodies to determine its own mandatory application rules for public companies.

These new regulatory requirements offer businesses an opportunity to dig deeper into their operations and plan for the short-, medium-, and long-term while meeting the information needs of stakeholders and customers.

Knowing how to fill these requirements, and what that means for you doesn’t need to be complicated. Get started on the IRFS S2 today and reach out to an MNP advisor first to help you understand, model, and calculate your greenhouse gas baseline.

Our team will assist you in assessing where you’re at and determine where you need to go; identifying gaps, assessing ESG maturity, and mapping readiness are just a few of the important pieces needed to meet the deadline.

Our ESG assessment tool, found above, can help you get started by finding out where you’re at in ESG strategy implementation. This will allow you to see what you’re doing right and where you may need to improve.

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Bill S-211: Are you ready to meet the new requirements?

Effective January 1, 2024, Canadian organizations must take significant steps to eliminate child labour and forced labour from their supply chains. Bill S-211 is the latest in a growing chorus of laws that seek to protect vulnerable populations from slavery, human trafficking, and exploitation.

Affected importers, exporters, distributors, and manufacturers must be prepared to take steps to protect vulnerable populations and report on these initiatives — or face steep legal and financial penalties.

Are you ready to meet the new requirements?

Read more on IFRS standards

  • Agility

    July 06, 2023

    ISSB releases first IFRS Sustainability Disclosure Standards

    In a highly anticipated move, the ISSB has released two new sets of standards to regulate sustainability-related risk and opportunity reporting for companies across the globe. As strong and sustainable ESG practices become more important, to both the companies implementing them and the stakeholders calling for them, the time is now for businesses to reaffirm or create a clear set of policies around sustainability reporting.

  • Confidence

    May 21, 2024

    Understanding the impact of Sustainability disclosures on Agriculture in Canada What to do and how to embrace it

    Do you know the new requirements for ESG disclosures in agriculture? We answer some of the most common questions about disclosing sustainability-related information for agriculture producers.

  • Confidence

    April 01, 2024

    Truth, fiction, and trust in ESG reporting

    Amid a growing push for more transparency on environmental, social, and governance benchmarks, it’s becoming more difficult — and more vital — for organizations to demonstrate real, meaningful progress. 

Contact Edward Olson

Edward Olson

Edward Olson is Leader of MNP’s Environmental, Social and Governance (ESG) practice and Leader of the Firm’s Enterprise Risk Services (ERS) practice for the BC Okanagan region. With more than two decades of Canadian and international experience in both public practice and industry, Edward delivers practical and meaningful business advice to clients in both the private and public sectors.

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