Order Amending the Schedule to the Federal Sustainable Development Act: SOR/2026-24

Canada Gazette, Part II, Volume 160, Number 4

Registration
SOR/2026-24 February 13, 2026

FEDERAL SUSTAINABLE DEVELOPMENT ACT

P.C. 2026-132 February 13, 2026

Her Excellency the Governor General in Council, on the recommendation of the Prime Minister, the Minister of Justice, the Minister of Agriculture and Agri-Food, the President of the King’s Privy Council for Canada, the Minister of Canadian Heritage, the Minister of Public Safety and Emergency Preparedness, the Minister of Industry, the Minister of Transport, the Minister of National Defence, the Minister of Employment and Social Development, the Minister of Finance, the Minister of Citizenship and Immigration, the Leader of the Government in the House of Commons, the Minister of Natural Resources, the President of the Treasury Board, the Minister of Health, the Minister of Veterans Affairs and the Minister of the Environment, makes the annexed Order Amending the Schedule to the Federal Sustainable Development Act under paragraph 12.3(b)footnote a of the Federal Sustainable Development Actfootnote b.

Order Amending the Schedule to the Federal Sustainable Development Act

Amendment

1 Items 2 and 3 of the schedule to the Federal Sustainable Development Act footnote b are replaced by the following:

2 Any division or branch of the federal public administration set out in column I of Schedule I.1 to the Financial Administration Act, excluding the following:

3 Any corporation named in Schedule II to the Financial Administration Act, excluding the following:

Coming into Force

2 This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Federal Sustainable Development Act (the Act) outlines a legislated process for transparent decision-making on sustainable development under three pillars (environment, social and economic), establishing the legal framework for developing and implementing the Federal Sustainable Development Strategy (FSDS). The schedule to the Act sets out the federal designated entities subject to its application and reporting requirements. A legislative amendment to the Act in 2020 expanded the number of designated entities from 28 to 99 (which, as of 2024, increased to 100), with a view to enabling a whole-of-government approach to the development and implementation of the FSDS. However, in implementing these legislative changes, some federal organizations whose mandate does not relate to any of the three pillars of sustainable development have had to take on undue reporting burden, regardless of the extent to which such entities can meaningfully contribute to the FSDS. The Order Amending the Schedule to the Federal Sustainable Development Act (the Order) excludes 41 designated entities (39 small and 2 security-related) from the Act and seeks to balance the intended whole-of-government approach with pragmatic consideration to reporting burden.

Background

Enacted in 2008, the Act outlines a legislated process for transparent decision-making on sustainable development through the development and tabling of a federal strategy once every three years, along with the development and tabling of departmental strategies and annual reports that advance the federal strategy.

The purpose of the Act is to provide the legal framework for developing and implementing an FSDS that makes decision-making related to sustainable development more transparent and subject to accountability to Parliament, promotes coordinated action across the Government of Canada to advance sustainable development and respects Canada’s domestic and international obligations relating to sustainable development, with a view to improving the quality of life of Canadians.

While the Act pertains to many federal entities, it establishes the Minister of the Environment (the Minister) and the Department of the Environment (the Department) as leaders and coordinators in FSDS development and implementation.

The schedule to the Act designates the federal entities that are subject to its application, including its reporting requirements. At the time of royal assent in 2008, the entities subject to the Act were those named in Schedule I to the Financial Administration Act (21 entities at the time) alongside those named in the schedule to the Act (7 entities at the time). In 2020, legislative amendments to the Act came into force, which included expanding the designated entities set out in the schedule to the following:

This amendment, alongside the creation of the Canada Water Agency in 2024, increased the number of designated entities subject to the Act from 28 to 100, enabling a whole-of-government approach to the development and implementation of the FSDS.

Designated entities are subject to many reporting requirements under the Act. In the year following the tabling in Parliament of a new FSDS, each designated entity is required to prepare a Departmental Sustainable Development Strategy (DSDS), which they must subsequently table in Parliament. Each DSDS must include entity-specific objectives and plans that seek to advance the FSDS while taking applicable policies and directives from the Treasury Board Secretariat into account. Once the DSDS is tabled, each designated entity must then prepare (and table) two annual progress reports.

The first FSDS following the coming into force of the expanded list of designated entities was tabled in 2022 and the DSDSs from all designated entities were tabled in November 2023. Through the development and tabling of the DSDSs, it became evident that significant reporting burden had been placed on certain entities that, given their organizational structure and mandate, were not well positioned to contribute to the FSDS in a meaningful way. To this end, the Department undertook a process with internal stakeholders to identify 41 federal organizations that do not have mandates relevant to sustainable development to remove them from the schedule to the Act. This includes 39 small federal organizations and 2 security-related federal organizations that are larger, but whose mandates and core activities do not advance the FSDS. With 59 designated entities remaining on the schedule to the Act, the Order still allows for a whole-of-government approach to reporting on sustainable development with heightened focus on the federal entities best positioned to make policy and operational commitments in their DSDSs that meaningfully contribute to the FSDS.

Objective

The objective of the Order is to reduce reporting burden on small and security-related federal organizations that do not have a mandate relevant to sustainable development. As such, the Order enables the federal government to focus on organizations that can make meaningful contributions in their DSDSs that advance the FSDS, for a balanced whole-of-government approach that reinforces the legislative intent of the Act.

Description

The Order amends the schedule to the Act to exempt, by name, 41 entities from being subject to the Act and its reporting requirements:

The 41 entities being exempted are the following:

Regulatory development

Consultation

The Order is administrative in nature, reducing reporting burden on small and security-related federal organizations that do not have a mandate relevant to sustainable development. As a result, the Department did not conduct any consultations that were external to the Government. Furthermore, while civil society and individuals may engage with the FSDS and associated progress reports, they are not likely to engage with individual entities’ DSDSs (especially those that do not relate to the three pillars of sustainable development). Accordingly, the Department did not solicit comment from the public on the Order. The Order is exempt from prepublication in the Canada Gazette, Part I, for the same reasons.

Indigenous engagement, consultation and modern treaty obligations

The Order is administrative in nature and does not impact Indigenous peoples nor does it result in any impact on modern treaty rights or obligations. As a result, the Department did not undertake specific engagement or consultation with Indigenous peoples.

Instrument choice

Other than a legislative amendment, the Order is the only available instrument to exempt designated entities from the Act and its reporting requirements. The Department considered three options for defining the scope of exemption. Option 1 was to exempt only micro-organizations, defined as those employing less than 150 full-time equivalents (FTEs), whose mandate does not relate to sustainable development. Option 2 was to exempt small organizations, defined as those operating under a maximum annual budget of $300 million, whose mandate does not relate to sustainable development. Option 3 was to exempt those small organizations alongside security-related organizations whose mandates do not align with any dimension of sustainable development and whose core activities do not advance the FSDS. Given the goal of balancing a whole-of-government approach with pragmatic consideration to reporting burden, option 3 was chosen, which identifies 41 designated entities for exclusion from the schedule to the Act.

Regulatory analysis

Benefits and costs

The Order is administrative in nature and does not result in any incremental costs to business. Exempting 41 federal entities from the Act and its reporting requirements has no adverse environmental, social or economic impacts, as these entities do not perform activities that relate to any of the three pillars of sustainable development. The Order does not negatively impact the federal government’s ability to fulfill its obligations under the Act, including the requirement to table periodic FSDSs in Parliament. While the Government will no longer have DSDSs from the 41 entities, the information in those strategies does not meaningfully contribute to the FSDS and, in some cases, it is already being reported under other mechanisms. Those entities are expected to fulfill commitments that are part of their regular business (e.g. green procurement) or other reporting even if they are not required to complete a DSDS. There is the potential that some DSDS commitments by these organizations may not be fulfilled, but any potential impacts (costs or benefits) from not fulfilling them are expected to be negligible.

The benefit of the Order is reduced reporting burden on 41 smaller federal entities that do not have mandates that position these entities to meaningfully contribute to the FSDS process. Exempting 39 small organizations and two security-related organizations from the requirements of the Act would result in time savings for these entities and a more streamlined FSDS/DSDS process.

Small business lens

Analysis under the small business lens concluded that the Order has no impact on businesses (including small businesses).

One-for-one rule

The one-for-one rule does not apply, as the Order has no impact on businesses.

Regulatory cooperation and alignment

The Order does not have any implications on, or opportunities for, regulatory cooperation and alignment with other jurisdictions in Canada or internationally.

International obligations

While the implementation of the Act supports Canada’s obligations under the United Nations Sustainable Development Goals and associated 2030 Agenda for Sustainable Development, the Order itself has no impact on the ability to fulfill these obligations.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, the Order is exempt from the requirement to complete a strategic environmental and economic assessment, as it has no impact on the environment or the economy.

Gender-based analysis plus

No gender-based analysis plus impacts for the Order have been identified.

Implementation, compliance and enforcement, and service standards

The Order comes into force on the date of registration.

Contacts

Emmanuel Mongin
Director
Sustainable Development Policy Division
Department of the Environment
351 Saint-Joseph Boulevard 
Gatineau, Québec
J8Y 3Z5
Email: SDO-BDD@ec.gc.ca

Matthew Watkinson
Executive Director
Regulatory Analysis and Valuation Division
Department of the Environment
351 Saint-Joseph Boulevard 
Gatineau, Québec
J8Y 3Z5
Email: darv-ravd@ec.gc.ca