Government launching Net-Zero Challenge to recognize businesses transitioning to cleaner operations
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On August 26, 2022, the Hon. Steven Guilbeault, Minister of Environment and Climate Change, announced the launch of the Net-Zero Challenge, a new national voluntary initiative for businesses operating in Canada. Businesses that join the Challenge commit to implementing credible and effective plans to transition their facilities and operations to net-zero emissions by 2050. For companies to participate, they must commit to meet the minimum requirements.
What are the minimum requirements?
- setting a net-zero target for 2050 or earlier;
- developing a net-zero plan within 12 months and a comprehensive plan within 24 months of joining;
- setting at least two interim emissions reduction targets;
- producing annual progress reports;
- making formal attestations to the content of net-zero plans and progress reports, with strong encouragement to publicly disclose this information; and
- making public climate-related financial disclosures based on the recommendations of the Task Force on Climate-Related Financial Disclosures (small- and medium-sized business are exempted from this requirement).
In addition to meeting the minimum requirements outlined above, companies must produce five-year updates of their net-zero plans. Companies that fail to meet the requirements will be removed from the program.
How to participate
There are three participation streams: Stream 1 is for large industrial emitters, Stream 2 is for financial institutions and Stream 3 is for all other companies. Each stream has different requirements for reporting Scope 3 emissions. The Net-Zero Challenge also includes various participation tiers to encourage ambition and track progress in net-zero planning.
What are the benefits of participating?
According to the government, companies will benefit from technical guidance, best practices, a community of peer businesses and the opportunity to highlight their commitment to achieving net-zero emissions.
Who is taking up the challenge?
To date, 12 organizations across Canada – including companies in the construction, energy, transportation and financial services sectors – have joined the challenge.
For more information access Canada’s Net-Zero Challenge website at:
