Overview of NI 51-107
Introduced: October 2021 (CSA proposed drafting); CSSB standards finalized March 2024
Effective from: Voluntary FY 2025 (reports filed in 2026), mandatory from FY 2026 (reports filed in 2027)
Region(s): Canada
About NI 51-107
National Instrument 51-107 (NI 51-107) transitions Canadian issuers from voluntary sustainability reporting to mandatory climate-related financial disclosure aligned with the Canadian Sustainability Standards Board (CSSB) standards—CSDS 1 (Governance & Strategy) and CSDS 2 (Climate Disclosures). These standards mirror IFRS Sustainability Standards (IFRS S1 and S2) developed by the International Sustainability Standards Board (ISSB) and introduce climate-risk scenario analysis and consistent Scope 3 disclosure requirements.
Disclosure requirements
Companies must report in accordance with the CSSB structure:
Governance
Board oversight and management roles in monitoring and responding to climate-related risks and opportunities.
Strategy
Assessment of climate-related risks and opportunities, including resilience analysis through scenario planning (minimum of two scenarios: one consistent with a 1.5°C pathway).
Risk management
Processes for identifying, assessing, and managing climate-related risks integrated into existing enterprise risk management (ERM) frameworks.
Metrics and targets
Mandatory Scope 1 & Scope 2 emissions; Scope 3 required if material or publicly disclosed; progress metrics aligned with targets.
Criteria for compliance
All Canadian public issuers regulated by provincial securities regulators (TSX, TSXV, CSE, NEO), including foreign issuers reporting in Canada. Federally regulated financial institutions already required to comply separately under OSFI Guideline B-15 from FY 2024 onward.
Compliance timeline
2024
CSSB CSDS standards finalized (voluntary adoption begins for FY 2025).
2025
Canadian Securities Administrators (CSA) expected to finalize mandatory NI 51-107 reporting requirements.
2027 (covering FY 2026)
First mandatory disclosures due, submitted through SEDAR+ alongside annual continuous disclosure documents (MD&A or AIF).
Third-party assurance
Initial assurance remains voluntary; CSA consultations likely to introduce limited assurance requirements post-2028 aligned with recognized Canadian auditing standards.
Penalties for non-compliance
Entities may face penalties including:
- Cease-trade orders
- Administrative monetary penalties up to C$1 million per violation
- Civil liability for misrepresentations
- Potential director/officer liability for materially incomplete or misleading disclosures
