The Canadian Securities Administration (CSA), an association of provincial and territorial securities regulators in Canada, has published guidance for Canadian securities issuers on environmental disclosure requirements. The guidance, released on October 27, 2010, is intended to help issuers assess which information must be disclosed on material environmental matters.

Disclosure requirements include environmental risks, environmental liabilities, “forward-looking” information on environmental goals and targets, and financial and operational effects of environmental protection activities. The guidance also specifically includes as a disclosure requirement the potential impact of climate change on companies’ operations and liabilities.

Environmental risks include (i) litigation risks; (ii) physical risks from industrial contamination, climate change and water availability; (iii) regulatory risks, both domestic and foreign, such as environmental permits, reporting requirements, carbon pricing systems and trading systems, energy efficiency standards and building codes; (iv) reputational risks; and (v) risks to the company’s business model due to legal, technological, political, and scientific developments.