Federal government procurements over $25M now require suppliers to disclose their GHG emissions and set reduction targets.
As of April 1, major Government of Canada suppliers will be compelled to disclose their greenhouse gas emissions and set reduction targets.
The new Treasury Board Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets outlines that federal government procurements over $25M should incent suppliers to disclose their GHG emissions and set reduction targets. Suppliers can fulfill this requirement through participation in Canada’s Net-Zero Challenge or another approved internationally recognized and functionally equivalent standard or initiative. The Net-Zero Challenge is a voluntary initiative that encourages businesses to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions.
“Climate change is one of the greatest global challenges of our time. The new standards announced today are part of the government’s plan to achieve net-zero emissions by 2050. This approach will not only ensure greener government operations, but it will also help Canada meet its targets as a country. The government’s ongoing commitment to fight climate change and its leadership in the transition to a green economy is key to Canada’s success in reducing greenhouse gas emissions,” said Mona Fortier, President of the Treasury Board
Ministers also announced that more than 40 companies have now joined the Net Zero Challenge since it was launched in August 2022 – including Microsoft Canada, Aecon Group Inc., 3M Canada and Cogeco. Going forward, the Net-Zero Challenge will not only be for businesses, but also for cities.
“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. Climate change means business and businesses are stepping up,” said Steven Guilbeault, Minister of Environment and Climate Change.
Companies that participate in the Net-Zero Challenge are supported in the planning process and benefit from technical guidance, best practices, a community of peers, and the opportunity to highlight their commitment to achieving net-zero emissions.