An update from the Independent Review Committee on Standard Setting in Canada
Sustainability. Environmental, social, and governance (ESG) reporting. Global standards for global consistency.
These phrases are on everyone’s lips these days. So where does the Independent Review Committee on Standard Setting in Canada sit when it comes to sustainability standards?
Sustainability standards is an important topic to the Committee. It’s part of what we’re exploring when it comes to ensuring Canadian standard setting is fit for the future.
However, our mandate is not limited to sustainability standard setting. Our monthly meetings focus on other considerations for establishing accounting, auditing, and assurance standards in Canada.
Our October 2021 meeting took place in a hybrid environment, with some of us meeting in person in Toronto, ON and some of us participating remotely.
What we’re discussing right now
Our meeting discussions have led us to identify several key matters that we’ll explore in more detail in our upcoming consultation, to be issued in early December 2021 for public comment and close on February 28, 2022.
So far, these key matters include:
- the overall governance and oversight framework of the Canadian standard-setting system, including its legal structure and funding mechanisms;
- consideration of public interest and responsibilities to Indigenous peoples in the development of standards;
- timeliness and responsiveness of the current accounting, auditing and assurance standard-setting processes; and
- the recommendation to establish a Canadian Sustainability Standards Board, with consideration of its governance and accountability framework.
Keeping an eye on international activity
While our Consultation Paper is out for public comment, the IFRS Foundation Trustees continue their work towards developing global sustainability standards. It is important to understand where we, the Independent Review Committee on Standard Setting in Canada, fit in when it comes to the creation of the IFRS Foundation’s International Sustainability Standards Board (ISSB).
Because of the ISSB’s formation, the time is undoubtedly right to explore what this means for Canada. Our discussions have led us to recommend establishing a Canadian Sustainability Standards Board (CSSB), an area we want to explore in more depth with you.
What happens next?
We need Canadians’ feedback on the Consultation Paper to help drive our final recommendation report, so we’ll be working to consult with organizations and individuals while our paper is open for public comment.
Our final report is expected to be issued in June 2022, with our recommendations going to Canada’s financial reporting and assurance standards oversight councils for consideration and potential implementation.
Download
A timeline of events: Independent Review Committee on Standard Setting in Canada
We look forward to consulting with you this winter!
The Independent Review Committee on Standard Setting in Canada