Canada’s financial regulator, the Office of the Superintendent of Financial Institutions (OSFI), has announced a significant delay in the requirement for banks and insurance companies to report financed and insured emissions. Originally set to begin in 2025 for large institutions and 2026 for smaller firms, the disclosure of Scope 3 emissions—those associated with loan books and underwriting activities—will now commence in fiscal year 2028.

OSFI cited the need to align its guidance with the newly introduced Canadian Sustainability Standards Board (CSSB) requirements as the reason for the extension. The CSSB, established to develop Canadian Sustainability Disclosure Standards (CSDSs) in line with the IFRS Foundation’s International Sustainability Standards Board (ISSB), released its first set of standards in December 2024. While ISSB allowed a one-year relief period for Scope 3 emissions reporting, CSSB extended this to three years, prompting OSFI to adjust its timeline accordingly.

Additionally, OSFI introduced a new disclosure requirement for off-balance sheet emissions, such as those from capital markets activities, with reporting now set to begin in fiscal year 2029.

The delay provides financial institutions with additional time to refine their data collection and reporting processes, though it also postpones greater transparency into the climate impact of Canada’s financial sector.

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