On April 23, 2025, the Canadian Securities Administrators (CSA) announced that it would suspend the development of new mandatory climate-related disclosure rules and amendments to existing diversity disclosure requirements to support Canadian issuers to remain competitive and resilient in response to the latest developments in the United States and around the world.

This suspension does not affect the current voluntary disclosure framework and existing mandatory disclosure obligations. Issuers must still comply with the securities law's disclosure of significant climate risks and the disclosure requirements of National Standard No. 58-101 on female representation on the board and senior management.

CSA promises to review relevant projects in the next few years, provide issuers with adequate notice before resuming rulemaking, and encourage issuers to refer to the CSSB voluntary standards to prepare for the transition.

Stan Magidson, Chairman of the CSA and Chairman and CEO of the Alberta Securities Commission, said: "The global economic and geopolitical landscape has changed dramatically in recent months, increasing uncertainty and competitive pressures for issuers; CSA's move is intended to make Canadian issuers more competitive, efficient and resilient."

Global regulatory trends

This move echoes the EU's "Omnibus" package of simplifications and delays to the Corporate Sustainability Reporting Directive (CSRD), reflecting the cautious adjustment of global regulators on sustainable disclosure rules.

At the same time, the US Securities and Exchange Commission (SEC) has also decided to stop defending its climate disclosure rules in court and suspend the implementation of relevant regulations.

FinTech Global pointed out that the trend of "withdrawal" on sustainability disclosure is becoming increasingly obvious worldwide, and regulators are reassessing the pace and scope of rule-making.

Market and stakeholder reactions

Environmental Defence criticized the CSA's move as a "step backwards", warning that delaying the implementation of climate risk information disclosure will harm investors and weaken market transparency.

Responsible Investor believes that the suspension reflects that regulators have taken a more cautious approach to disclosure rules amid growing global uncertainty.

Wealth Professional reported that the CSA's decision is also closely related to the intensified market competition pressure and is intended to retain more flexibility for the Canadian capital market.

According to Yahoo Finance, the CSA is expected to review these two tasks in the next few years and provide issuers with sufficient notice before resuming the formulation.

Canada's policy adjustment highlights the complex tension between economic growth, political games and climate responsibility in ESG governance. However, the global capital market's demand for high-quality ESG data is irreversible, and international standards mutual recognition and technological innovation will reshape the future competitive landscape. Companies need to balance short-term costs and long-term value from a dynamic perspective and transform ESG from a compliance burden to a strategic asset.

Author：Qinger