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Canada’s sustainability reporting standards are CSDS 1 and CSDS 2, issued by the Canadian Sustainability Standards Board on 18 December 2024. They’re voluntary unless a regulator or government requires them, and as of today we couldn’t find a rule that forces most companies to use them. The securities regulators paused their own mandatory climate disclosure work on 23 April 2025.
What are CSDS 1 and CSDS 2?
CSDS 1 covers general requirements for sustainability disclosure. CSDS 2 covers climate. The CSSB sits under Financial Reporting and Assurance Standards Canada, and it built both standards on the international IFRS S1 and IFRS S2, with changes it says serve the Canadian public interest.
The standards sit in the CPA Canada Handbook, Sustainability. So they’re accounting standards in the literal sense, written by the same family of bodies that writes the ones for financial statements.
| Item | What we confirmed |
|---|---|
| Issued | 18 December 2024, by the CSSB |
| Based on | IFRS S1 and IFRS S2, with Canadian modifications |
| Status | Voluntary unless a regulator or government mandates them (FRAS Canada) |
| Transition relief | Built in, including for scenario analysis and Scope 3 emissions; check the FRAS Canada page for the exact periods |
| Securities regulators | Paused new mandatory climate disclosure rules on 23 April 2025 |
| Who must use them | Not confirmed for any group of companies |
Do private companies have to report?
Not under the standards themselves. Because they’re voluntary unless mandated, a small private corporation has no duty from them today. A bank, an investor or a large customer might still ask for the information, and that’s a commercial request, not a legal one.
The regulators’ pause matters here. It was about new mandatory rules for climate disclosure, and it means the answer to “who has to report?” is still “nobody new.” Existing securities law can still require issuers to disclose material risks, which is a separate thing we haven’t tested against any specific company.
Dates will move. The pause could lift, or provinces could act on their own. If you need the current position for a client, check the FRAS Canada and Canadian Securities Administrators pages the day you need it.
What should a small business do now?
Probably very little, and that’s a fair answer. Your time is better spent on the filings that carry penalties. For an employer, that means payroll. One employee paid $3,000 every two weeks in Ontario has $961.03 remitted to the CRA each pay period, made of $732.62 held back and $228.41 added by the employer, according to our payroll remittance calculator.
A corporation with $300,000 of active business income in Ontario owes $35,088 in combined tax on our corporate tax calculator. Ontario cut its small business rate in July 2026, so that figure uses a prorated blend and is an estimate.
Compare those numbers with the effort of a sustainability report nobody has asked for. One is due on a fixed date. The other is optional. The other is optional.
What if a lender or customer asks for climate data?
Then you have a real reason to look at CSDS 2. Ask what they want, in writing, and whether they’ll accept something short. Many requests are a few questions, not a full standard.
Start by gathering what you already have: energy bills, fuel receipts, travel records. Good bookkeeping makes that easy, and keeping records readable and retrievable is a CRA duty anyway. The CRA says electronic records must be kept for six years after the end of the year they relate to.
If your own tax position needs checking at the same time, the self-employed tax calculator is a quick way to see where an owner’s income lands.
Mistakes to avoid with sustainability standards
Assuming a voluntary standard is a legal requirement is the expensive one. Assuming it will never become one is the risky one. Both come from not reading the source.
Another: quoting old dates. You’ll find articles saying reporting starts in a given year. Transition relief changed the timing, and the regulators paused after that. Check the date on whatever you read.
Finally, skipping the claim test. If a company says it follows CSDS, ask which standard, which year and whether anyone independent has checked. We haven’t verified any claim like that for any named firm.
Where the numbers come from
Standard details and status come from FRAS Canada, December 2024. The regulators’ pause comes from the Canadian Securities Administrators, April 2025. Record rules come from the Canada Revenue Agency. Payroll and corporate tax figures come from our calculators with 2026 data.
Frequently asked questions
What are CSDS 1 and CSDS 2?
They're Canada's sustainability disclosure standards, issued by the CSSB on 18 December 2024 and based on IFRS S1 and IFRS S2 with Canadian changes.
Are they mandatory?
FRAS Canada says they're voluntary unless a regulator or government mandates them. We couldn't confirm a mandate for any group of companies.
What did the securities regulators do?
On 23 April 2025 the Canadian Securities Administrators announced a pause in work on new mandatory climate disclosure rules.
Does a small private company need to report?
Not under the standards themselves. A lender or customer may ask for data, but that's a commercial request.
Where do I check current dates?
On the FRAS Canada and Canadian Securities Administrators pages, since timing has changed before.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.