A divide has opened up between investors who want clear sustainability reporting standards and energy companies that prefer voluntary disclosure. A dump truck works near an oil sands extraction facility near Fort McMurray, Alta. on June 1, 2014.Some of Canada’s largest institutional investors support quick adoption of a slate of new sustainability reporting standards while energy and mining companies want disclosure to remain voluntary and exclude items such as indirect carbon emissions.
The CSSB was formed to tailor the global standards to a Canadian economy heavy in resource-extraction and small- and medium-size companies.It released its draft standards in March, and invited public comment. The Canadian Securities Administrators, the umbrella group for provincial securities commissions, has said it will examine the CSSB’s work before deciding on moving to mandatory sustainability reporting.
Besides public companies, it also received feedback from industry associations, accounting consultancies, environmental groups and individuals. The board said it also had discussions with more than 700 organizations in 70 meetings and events. Another contrast concerns conducting scenario analysis – gauging impact of climate risk over a range of potential possibilities. Enbridge Inc., the pipeline and utility company, said it wants scenario analysis removed from the standard.