Environmental, Social, and Governance (ESG) reporting is no longer optional in Canada. With new standards taking effect in 2025, organizations will be legally required to disclose how they manage sustainability-related risks and opportunities. For Chartered Professional Accountants (CPAs), this shift brings new responsibilities — and new opportunities to lead.

Whether you work in public practice, corporate finance, internal audit, or the public sector, ESG reporting is becoming part of your core role. Investors, regulators, and the public are demanding transparency — and CPAs are trusted to deliver it.

This guide explores how ESG affects your role, where many professionals go wrong, and what practical steps you can take to contribute meaningfully to your organization or clients — all while aligning with your professional development goals.

What Is ESG Reporting?

ESG reporting involves disclosing how an organization manages its environmental impact, social responsibilities, and governance practices. These areas affect an organization's risk, reputation, and long-term value:

• Environmental: Energy use, emissions, water and waste management, climate adaptation

• Social: Employee well-being, equity and inclusion, human rights, community engagement

• Governance: Board structure, compliance, ethics, and transparency

Strong ESG reporting practices help organizations demonstrate accountability and resilience — key factors for investors, regulators, and customers. CPAs are in a unique position to ensure that ESG data is accurate, material, and decision-useful.

If you're new to ESG or need a structured way to connect ESG topics to accounting and finance, the ESG Performance Measurement course is a great starting point. It focuses on how CPAs can measure, interpret, and apply ESG data within financial reporting and assurance contexts.

Understanding the New ESG Standards in Canada

As ESG reporting becomes mandatory, several key frameworks will shape how organizations disclose sustainability performance. Here's an overview of the most important ones:

Canadian Sustainability Disclosure Standards (CSDS)

Starting January 1, 2025, Canadian companies will need to comply with Canadian Sustainability Disclosure Standards (CSDS):

• CSDS 1: General sustainability-related risks and opportunities

• CSDS 2: Climate-specific risks, such as emissions and transition exposure

Developed by the Canadian Sustainability Standards Board, these standards align closely with international reporting expectations.

ISSB Standards (IFRS S1 and S2)

Canada is adopting these global standards from the International Sustainability Standards Board (ISSB):

• IFRS S1: Covers general sustainability disclosures

• IFRS S2: Focuses on climate-related disclosures, such as GHG emissions and climate scenario analysis

Understanding these standards will be essential for any CPA involved in risk reporting, audit, or financial statement preparation. 

Task Force on Climate-related Financial Disclosures (TCFD)

This widely adopted framework focuses on four key areas: governance, strategy, risk management, and metrics. TCFD principles are embedded in both CSDS and ISSB standards, making it a common starting point for ESG reporting.

ISAE 3000 and ISAE 3410

These international assurance standards guide how CPAs assure ESG data:

• ISAE 3000: Used for general non-financial information

• ISAE 3410: Focuses on greenhouse gas (GHG) disclosures

If you're involved in audit, assurance, or internal controls, understanding these standards is critical to verifying ESG reports with confidence.

Avoiding a Common Mistake: ESG Is Not Just PR

A frequent misstep is treating ESG as a public relations exercise. Some companies publish sustainability reports filled with broad statements and good intentions — but no data, targets, or third-party verification.

Without credible disclosures, companies risk being accused of greenwashing — making claims about sustainability that don’t hold up under scrutiny.

CPAs must apply the same standards of accuracy, consistency, and materiality to ESG data as they do to financial statements. This includes assessing internal controls, confirming the reliability of data sources, and ensuring disclosures align with stakeholder expectations.

To help bridge this gap between storytelling and accountability, CPAs should look for training that covers both ESG frameworks and real-world applications. 

ESG in Practice: CPA Roles and Responsibilities

Public Practice

Firms are increasingly expected to offer ESG assurance or advisory services. Clients are looking for help with climate disclosures, risk integration, and audit-readiness. CPAs in public practice will benefit from knowing how to apply assurance standards like ISAE 3000, and how to advise clients on meeting CSDS and ISSB requirements.

Corporate and Industry

In-house CPAs are tasked with integrating ESG into financial disclosures, risk analysis, and strategic planning. This includes evaluating how ESG factors affect asset valuation, impairment testing, and capital allocation.

For those in operations-heavy businesses like manufacturing or real estate, courses such as ESG and Facilities Management offer sector-specific insights into ESG metrics and operational compliance.

Government and Nonprofit

CPAs in the public sector must track social outcomes, environmental progress, and responsible spending. ESG is increasingly linked to policy transparency, stakeholder trust, and funding eligibility. Understanding how to align ESG metrics with fiscal reporting is key to public accountability.

Sector-Specific ESG Considerations

Financial Services

Banks and investment firms must assess climate risk, measure financed emissions, and comply with disclosure guidance from OSFI. Methodologies like PCAF are becoming standard for carbon-related finance.

Manufacturing and Resources

These industries must disclose GHG emissions across Scopes 1, 2, and 3, conduct life cycle assessments, and comply with legislation such as the Fighting Against Forced Labour and Child Labour in Supply Chains Act.

Technology and Services

Key ESG topics include cybersecurity governance, DEI tracking, data privacy, and remote work emissions. ESG reports in these sectors may also cover digital equity and IP sustainability. If you're also exploring how AI tools like ChatGPT can support ESG workflows — from drafting policies to automating risk assessments — the Certificate Program: ESG and ChatGPT Expert provides hands-on training in both domains.

Public Sector

Municipalities and public institutions are reporting on climate goals, issuing green bonds, and working with communities to ensure transparent reporting. ESG helps support long-term infrastructure and social planning.

Advancing Your ESG Skills Through CPD

Whether you're a generalist CPA or a specialist in audit, risk, or reporting, ESG now touches every area of professional practice. Continued education is the best way to stay confident, compliant, and credible in this evolving space.

CPDFormula offers ESG-focused learning tailored for Canadian accountants.

Look for programs that are recognized by your provincial CPA body, feature real-world case studies, and include templates or tools that help you apply what you’ve learned immediately.

Conclusion

ESG reporting is not a temporary trend — it’s a lasting shift in how organizations demonstrate value and manage risk. CPAs are expected to guide that transition using their judgment, ethics, and analytical skills.

You don’t need to become an ESG expert overnight. But you do need to stay informed, understand the standards, and apply them through the lens of your professional responsibilities.

Ready to lead in the evolving world of ESG and accounting? Explore flexible, expert-led learning on CPDFormula and start building the skills your clients, employers, and regulators increasingly expect.

With the Unlimited Pass, you’ll gain access to the full CPD Formula course library — empowering you to deepen your ESG knowledge across topics and industries, at your own pace and on your own terms. Stay ahead, stay compliant, and stay in demand.