With the publication of CSA Staff Notice 51-358, Reporting of Climate Change-Related Risks (the Staff Notice), the Canadian Securities Administrators (CSA) continue to set forth their expectations regarding the disclosure by issuers of material risks posed by climate change.

While the Staff Notice does not create any new legal requirements for issuers, it does clarify the requirements listed under CSA Staff Notice 51-333, Environmental Reporting Guidance (the Environmental Reporting Guidance). CSA staff recommend that the Staff Notice be read in conjunction with the Environmental Reporting Guidance, as it continues to provide guidance to issuers on existing continuous disclosure requirements relating to a broad range of environmental matters, including climate change.

While recognizing the importance of the disclosure of material climate change-related risks is important for investors to make informed decisions, CSA staff also realize the disclosure of material climate change-related risks can produce challenges for issuers, especially smaller issuers with more limited resources. The goal of the Staff Notice is to provide all issuers with guidance as to how they might approach preparing disclosures of material climate change-related risks.

In addition to addressing regulatory requirements, CSA staff note that disclosing the material climate-change related risks also provides issuers with an opportunity to inform investors about the sustainability of their business model and to provide insights into how they are mitigating and adapting to the risks posed by climate change.

CSA Staff Notice 51-358, Reporting of Climate Change-Related Risks is available for download from the websites of the participating jurisdictions.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.

This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.