CSDS 2 guide

Canada now has its own sustainability disclosure standards. CSDS 1 and CSDS 2 were finalized by the Canadian Sustainability Standards Board (CSSB) on December 18, 2024. Both match the ISSB’s IFRS S1 and IFRS S2, with extra transition relief for Canadian companies, and they are effective for annual reporting periods beginning on or after January 1, 2025. Canada CSDS 1 & 2 Sustainability Disclosure Standards +2

The standards are voluntary for now. The Canadian Securities Administrators (CSA) paused work on a mandatory climate disclosure rule on April 23, 2025, but have signaled that any future rule for public companies would build on the CSSB’s work. Many Canadian companies are already aligning with CSDS, and investors are asking for CSDS-aligned data. Canada CSDS 1 & 2 Sustainability Disclosure Standards +2

This institutional investor’s guide to CSDS breaks down what the standards require and what that means for portfolio analysis.

Inside, you’ll find:

• An overview of CSDS 1 and CSDS 2, and where they differ from IFRS S1 and IFRS S2
• Guidance on Scope 1, 2 and 3 emissions, including financed emissions and the relief for Scope 3
• What’s expected for scenario analysis, resilience, and financial impact disclosures
• The current regulatory position, from the CSA pause to the climate-only option for 2025 and 2026 reports materialitymaster
• How Emmi’s Carbon Diagnostics supports CSDS-aligned analysis across public and private markets

Whether you’re analyzing disclosures from Canadian issuers or building CSDS data into portfolio risk frameworks, this guide is a practical starting point.

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