Following the creation of the International Sustainability Standards Board (ISSB) last fall, Canadian accounting and audit standards setters are establishing their own body to oversee the development of ESG-specific standards.
Following a consultation initiated by the Independent Review Committee on Standard Setting in Canada (IRCSS), the standards setters — the Accounting Standards Oversight Council (AcSOC) and Auditing and Assurance Standards Oversight Council (AASOC) — approved the formation of the Canadian Sustainability Standards Board (CSSB) to work with the new ISSB and existing standards setting groups.
“This new board is key to ensuring that Canadian standards are relevant, responsive and fit for our country,” said Lorraine Moore, chair of the AcSOC, in a release.
The organizations aim to launch the CSSB by April 1, 2023
“The CSSB will work in lockstep with the [ISSB] to develop and support the adoption of IFRS sustainability disclosure standards — ensuring that the Canadian perspective is part of international decision making,” said Kevin Nye, chair of the AASOC.
The standards setting organizations said that they are forming an implementation committee to start the work of establishing the new body — including the recruitment of a chair and board members, defining its governance and other processes.
The IRCSS’ consultation, which was launched in December 2021 at the behest of the AcSOC and the AASOC, as part of a broader review of the governance and structure for Canadian accounting, auditing, and assurance standards will culminate in a final report to be released this summer.
“In light of the momentum in this space, the committee felt it important to fast-track our recommendation to establish the CSSB to the oversight councils now,” said Ed Waitzer, chair of the IRCSS, in a release.
That final report is expected to contain a number of recommendations, but the organizations concluded that support for a CSSB was already evident.
“We are very pleased with the approval to establish a CSSB and we look forward to issuing our additional recommendations to ensure Canadian standard setting continues to serve the public interest,” Waitzer added.