Summary of the Article

  • The Canadian Securities Administrators (the "CSA") have published a notice and request for comment on proposed National Instrument 51-107 - Disclosure of Climate-related Matters(the "Proposed Instrument") and its companion policy, which would establish mandatory climate-related disclosure requirements for reporting issuers in Canada largely premised on the framework developed by the Task Force on Climate-Related Financial Disclosures (the "TCFD").
  • The Proposed Instrument would apply to all reporting issuers (other than investment funds and certain specified issuers) and, consistent with the TCFD framework, the required disclosure would fall into four broad categories: Governance; Risk Management; Strategy; and Metrics and Targets.
  • "Governance" and "Risk Management" disclosure would be compulsory. "Strategy" and "Metrics and Targets" disclosure would only be required where such information is material.
  • The Proposed Instrument is not anticipated to come into force prior to December 31, 2022 and a one-year transition period would apply in respect of non-venture issuers; three years for venture issuers. Assuming the Proposed Instrument comes into force December 31, 2022, then for issuers with a December 31 year-end, the proposed requirements would apply to annual filings due in March 2024, for non-venture issuers, and annual filings due in March 2026, for venture issuers.
  • The deadline for public comment on the Proposed Instrument is January 17, 2022.

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