What Canada’s pause on climate-disclosure requirements means

Summary

Canada has decided to temporarily halt mandatory corporate climate disclosures due to economic uncertainties caused by tariffs. This decision is believed to alleviate financial pressures on local businesses, but some critics argue that the demand for reliable sustainability information remains high. The Canadian Securities Administrators aim to enhance market competitiveness amidst the evolving global landscape. Despite the pause, over 1,300 Canadian enterprises are still obligated to report to the EU in the next three years. The move follows a similar trend globally, with the US SEC and the EU also adjusting their climate disclosure regulations. Critics warn that postponing climate reporting requirements may negatively impact businesses’ preparedness and Canada’s economic competitiveness.