Publication
A decade of diversity disclosure in Canada
The Canadian securities regulators have published their tenth and likely final report on the status of women on boards and in executive officer positions in TSX-listed companies.
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Canada | Publication | October 31, 2024
The Canadian securities regulators have published their tenth and likely final report on the status of women on boards and in executive officer positions in TSX-listed companies. Ten years ago, more than half of reporting companies did not have any women on the board. Today, 90% have at least one.
The Canadian Securities Administrators (CSA) began publishing key findings from its annual disclosure reviews following amendments made to securities regulations in 2014 that established a “comply or explain” gender diversity disclosure regime. The regulations require TSX-listed companies and other non-venture issuers (subject to certain exceptions) to provide disclosure on the representation of women on the boards of directors and in executive officer positions as well as on term limits. It is referred to as a “comply or explain” system since companies are required to either put in place diversity and board renewal policies and targets, or explain why they have not done so.
As we look back over the past decade of diversity disclosure, the following are some of the key findings regarding the representation of women on boards and in the C-suite of TSX-listed companies:
Following its request for comment in April 2023, the CSA continues to consider potential amendments to securities regulations to require disclosure regarding more than just gender diversity. It is also considering whether the rules should apply to venture issuers as well. A summary of the two alternative approaches proposed by the regulators is available here.
Broadening the scope of diversity to include other designated groups would align the securities regulations more closely with the requirements of the Canada Business Corporations Act (CBCA). Since January 2020, public CBCA companies have had to make diversity disclosure similar to that required by the securities regulations but for four designated groups: women, Indigenous peoples, persons with disabilities and members of visible minorities. The Canadian securities regulators are considering whether to adopt a similar scope of diversity, with the potential addition of a fifth designated group, being LGBTQ2SI+ persons.
The year 10 report indicates that the CSA continues to consider feedback on the two proposed approaches to diversity disclosure, but does not provide any indication of timing of potential future amendments.
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The Canadian securities regulators have published their tenth and likely final report on the status of women on boards and in executive officer positions in TSX-listed companies.
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