The earlier articles in this series explored forthcoming Canadian regulations around ESG and climate-related risks; 2024 is set to be the year in which financial companies need to publish climate-related risks and disclosures, and Bill S-211 will be introduced, addressing forced and child labor in Canadian supply chains.
Not every Canadian ESG-related regulation is happening next year, however. This year saw the country requiring its major government suppliers to disclose their greenhouse gas (GHG) emissions and set reduction targets from 1 April 2023.
Suppliers can fulfil this requirement via participation in Canada’s Net-Zero Challenge or another approved internationally recognized and functionally equivalent standard or initiative, such as adopting a science-based emissions target as part of the Science-Based Targets initiative (SBTi).
Part of Canada’s broader climate and sustainability framework, the country’s Net Zero Challenge Program requires its participants to develop credible and fact-based plans to reach net-zero emissions by 2050 or sooner. These plans must outline specific actions, investments, and strategies to reduce emissions across their operations and supply chains.
A science-based emissions target, on the other hand, shows an organization how much and how quickly they need to reduce their greenhouse gas (GHG) emissions to prevent the worst effects of climate change. Organizations adopting science-based targets are expected to develop comprehensive plans outlining how they intend to achieve these targets.
In both cases, organizations must develop clear and credible plans to reduce emissions and work toward a sustainable, low-carbon future. ESG management and reporting software can be a powerful tool in this regard.
ESG software can help suppliers collect, organize, and analyze data related to their emissions, energy usage, and other sustainability metrics
ESG software can assist in analyzing supply chains, identifying emissions weak links, and evaluating the risks associated with supplier relationships
ESG software can streamline the reporting process, ensuring compliance with Canadian reporting standards and guidelines
ESG software can enable suppliers to continuously monitor and improve their sustainability performance by tracking key performance indicators and identifying areas for improvement
While the regulation is specifically aimed at larger Canadian government suppliers, it will likely have a knock-on effect on their supply chain partners as well.
As part of their strategies to reduce emissions across their operations and supply chains, these major suppliers will plausibly need to report on their business partners’ sustainability metrics, forcing them to disclose their own emissions information. ESG software can be a useful reporting tool for these supply chain partners.
As this article series demonstrates, Canada is boldly moving towards a more sustainable, low-carbon future via various regulatory changes, both this year and next. ESG management and reporting systems will have an important part to play in abiding with these requirements, and demonstrating the commitment of organizations towards combatting climate change effectively.