Canada is taking a bold step towards sustainability by introducing mandatory climate disclosure requirements for large companies. This move aims to enhance transparency and drive the country's transition to a low-carbon economy.

The article condenses insights from Workiva's 2024 ESG Practitioner Survey, revealing professionals' readiness to tackle challenges posed by the EU's Corporate Sustainability Reporting Directive (CSRD). Despite concerns about data accuracy and regulatory adaptation, a significant number of companies, including those not mandated by the CSRD, plan to align their reporting with the new standards, driven by perceived benefits like competitive advantage and improved decision-making. The survey underscores a growing emphasis on investing in technology for ESG initiatives, with an eye on data management and the potential of generative AI to streamline sustainability reporting. Overall, the findings illustrate regulation as a catalyst for innovation in corporate transparency, with companies increasingly embracing assured integrated reporting as the new norm.

A lack of US climate reporting regulation may pose negative side effects to US companies in the long run as they will have to adhere to stronger EU compliances.