Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
CSA Pauses Climate and Diversity Disclosure Rules
DEI Regulation | April 25, 2025
Image: Freepik
Canadian Regulators Halt Plans for Mandatory Climate and Diversity Disclosures
On April 23, 2025, the Canadian Securities Administrators (CSA) announced that it is pausing plans to create mandatory rules for climate and diversity reporting, since the U.S. Securities Exchange Commission (SEC) has cancelled their DEI initiatives and the need to focus on making Canadian markets more robust, efficient and competitive.
See: How Canadian Institutional Investors Voted on Climate 2024
Stan Magidson, CSA Chair and Chair/CEO of the ASC:
“In recent months, the global economic and geopolitical landscape has rapidly and significantly changed, resulting in increased uncertainty and rising competitiveness concerns for Canadian issuers,”
Material Risk Disclosure Still Required
Although proposed rules requiring companies to disclose more detailed information about climate risks and board diversity is not moving forward, companies must still adhere to the current rules under Canadian securities law that require disclosure of any material risk that would significantly impact the business or its investors, including climate-related risks.
For companies wondering about the Canadian Sustainability Standards Board (CSSB) standards (CSDS 1 and CSDS 2) that were introduced last December 2024, they are 'voluntary but encouraged'. These standards offer a framework for sustainability disclosures that are aligned with international norms but they will not be enforced unless circumstances change.
CSA Still Monitoring for Greenwashing and Diversity Rules Stay As-Is
While there are no new diversity requirements being added, non-venture issuers (companies listed on senior public stock exchanges, such as the TSX or NEO), are still required to report on representation of women on boards and in executive positions, covered under the existing rules in National Instrument 58-101.
See: Planetary Health Check 2024 and Canadian Climate Tech
The CSA says it will continue to monitor public company disclosures for misleading or incomplete climate claims (i.e. greenwashing) and may provide future guidance if needed.
Why It Matters
Some investors and advocates for diversity and inclusion may be disappointed by the pause on mandatory disclosure rules. At the same time, many companies are likely to appreciate the flexibility to use voluntary standards, especially given the current economic and regulatory landscape.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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