Government of Canada to Require Suppliers to Disclose Emissions, Set GHG Reduction Targets

Large suppliers to the Government of Canada will be compelled to disclose their greenhouse gas (GHG) emissions and set targets to reduce them, starting April 1, 2023, according to new standards released today.

According to Canada’s new “Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets,” federal procurements greater than $25 million will induce suppliers to measure and disclose their and adopt a science-based target to reduce GHG emissions in line with the Paris Agreement.

The supplier requirement can be fulfilled by participating in Canada’s Net-Zero Challenge or another approved internationally recognized and functionally equivalent standard or initiative. Launched in August 2022, the Net-Zero Challenge was established as a voluntary initiative to encourage businesses to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions by 2050.

Steven Guilbeault, Canada’s Minister of Environment and Climate Change, said:

“More and more businesses are aiming to make their operations net-zero, not just to fight climate change, but also to stimulate innovation and ensure the long-term sustainability. By baking these requirements into the Government of Canada’s contracting, we will help bring more businesses on board the target of net-zero.”

In addition to the new supplier rules, the government also announced the release of a new “Standard on Embodied Carbon in Construction,” requiring all new major government construction projects to report and reduce their embodied carbon footprint. The requirements of the new standard begin with concrete, ensuring that total GHG emissions associated with the project’s concrete is at least 10% lower than the regional average.