The Office of the Superintendent of Financial Institutions (OSFI) in Canada has drafted Guideline B-15, initially focused on Federally Regulated Financial Institutions but likely to broaden in scope over time to capture large organizations and eventually small and medium enterprises as well.
Financial institutions will be required to disclose not only their own carbon footprint but also that of the customers within their portfolios. In this case, small and medium sized businesses may indirectly feel the impact of Guideline B-15 by having to demonstrate their sustainability plans to their bank or lender.
Large businesses may also require carbon footprint data from small businesses in the form of an Environmental Product Declaration (EPD) to support their own reporting requirements. If not prepared, a business could potentially lose this business.
OSFI Guideline B-15 documentThe ISSB (International Sustainability Standards Board) disclosure proposals IFRS S1 and IFRS S2 are part of a broader initiative to enhance transparency and consistency in sustainability reporting. These standards are designed to provide investors and other stakeholders with relevant information about a company's sustainability performance and risks.
ISSB standards will not automatically apply in Canada, given the ISSB doesn’t have jurisdiction here. However, it will likely impact Canadian companies operating in foreign jurisdictions
IFRS S1 sets out general requirements for the disclosure of sustainability-related financial information and IFRS S2 focuses specifically on climate-related disclosures.
ISSB Sustainability Disclosures