Canada Updates ESG Disclosure Rules

Published on:
by KnowESG
KnowESG_Canada Updates ESG Disclosure Rules
Image courtesy of

The Canadian Securities Administrators (CSA) recently released an update to their guidelines for investment funds.

This update focuses on how funds should disclose information about environmental, social, and governance (ESG) factors.

The update builds on the original guidance published in January 2022. It clarifies areas that were not covered before and reflects recent developments and challenges.

It explains different disclosure expectations for funds that consider ESG factors in their investment decisions, even if their goals do not explicitly mention ESG. The level of disclosure depends on how much ESG plays a role in the investment process.

The guidelines rely on existing regulations and cover various disclosure areas. This includes a fund's goals, name, investment strategies, risk information, ongoing updates, and marketing materials. They also clarify which types of funds can advertise themselves as ESG-focused or incorporate ESG factors into their investing.

“Amid sustained public interest in ESG investing and the potential for greenwashing, the CSA’s updated guidance is aimed at bringing greater clarity and consistency to ESG-related fund disclosure and sales communications, which will ultimately help investors make more informed investment decisions,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. “We will continue to monitor developments involving ESG-related funds going forward.”

The update also summarises the results of recent reviews by CSA staff on ESG-related information in prospectuses, marketing materials, and ongoing fund disclosures.

For more information, contact your local securities regulator.

For more regulatory news

Source: CSA


Regulators Headlines

ASERCOM Establishes New ESG Working Group

ASERCOM Establishes New ESG Working Group

EY Opens Sustainable Finance Hub in Dublin

EY Opens Sustainable Finance Hub in Dublin

SBTi Updates Automaker Targets for 1.5°C

EU Greenwashing Law: Business Impact

Montgomery County Relaunches Green Business Programme

CCCS: Green Collaboration Guidance Released

NAIC Addresses ESG in Insurance

Italy Seeks Feedback on New Sustainability Reporting

BIBA Commits to Sustainable Future

ESG Gains Momentum Among British Manufacturers