5 Reasons Why Canadian Companies Need to Measure Carbon Emissions Starting In 2024

As Canada advances its climate policies, businesses must prepare for a future where carbon accountability is not just encouraged but mandated. Starting in 2024, Canadian companies, particularly those in the food and beverage sector, will face unprecedented scrutiny regarding their carbon emissions. This article outlines the top reasons why measuring carbon emissions is critical for staying competitive in this rapidly evolving landscape.

1. Mandated Carbon Reporting Requirements for Publicly Listed Companies The Canadian Sustainability Standards Board (CSSB) has set the stage for compulsory carbon reporting for publicly listed companies. As of June 2024, this includes the major grocery retailers in Canada, which will now be required to report their carbon emissions annually. The inclusion of Scope 3 emissions—those indirect emissions from the value chain—means that even suppliers to these entities will likely need to disclose their carbon footprints, regardless of whether they are publicly listed. This requirement underscores the need for comprehensive carbon measurement across all business operations.

2. The Impact of Bill C-59: No More Environmental Claims Without Evidence Bill C-59, which became law in June 2024, has introduced significant changes to how companies can market their environmental initiatives. This legislation, which amends the Competition Act, requires companies to substantiate any climate-related claims with science-based evidence. For example, if a company claims to be "Net Zero," it must be able to back this up with detailed, verified measurements of carbon emissions across Scopes 1, 2, and 3. Failure to provide this proof could result in legal and reputational risks, making it imperative for companies to begin accurate carbon measurement immediately. Read more HERE

3. Retailers Are Demanding Science-Based Targets Leading Canadian grocery retailers are now mandating that their suppliers set science-based targets by 2027, with the goal of achieving significant emissions reductions by 2030. Specifically, these targets call for a 42-50% reduction in Scope 1 and 2 emissions and around a 30% reduction in Scope 3 emissions. To meet these targets, suppliers must first measure their current emissions. Delaying this process will only compress the timeline for achieving these reductions, potentially increasing costs and operational challenges.

Read more about retailers SBTi targets:

4. International Standards and Growth Opportunities As global markets tighten their carbon reporting requirements, Canadian food and beverage companies must align with international standards to remain competitive. The European Union and the United Kingdom, for example, have already implemented stringent carbon reporting mandates and mechanisms like the Carbon Border Adjustment Mechanism. These requirements affect any Canadian company involved in or looking to expand into these markets. Therefore, measuring and reporting carbon emissions is not just about compliance—it's about seizing growth opportunities and avoiding barriers to entry in lucrative international markets.

5. Carbon Measurement: A Business Imperative Beyond regulatory compliance, measuring carbon emissions is simply good business. The food and beverage industry is a significant contributor to both domestic and global carbon emissions. By tracking and reducing their carbon footprint, companies can contribute to the global fight against climate change while realizing cost savings and enhancing their brand reputation. Investors, shareholders, consumers, and other stakeholders increasingly expect corporations to take responsibility for their emissions and demonstrate tangible progress toward Net Zero goals. Companies that act now will be better positioned to meet these expectations and maintain a competitive edge in a carbon-conscious marketplace.

The message is clear: Canadian companies, particularly in the food and beverage sector, cannot afford to delay carbon measurement and reporting. With new regulations, market expectations, and international standards converging, the time to act is now. By proactively measuring carbon emissions, companies will not only comply with upcoming mandates but also strengthen their market position, drive cost efficiencies, and contribute to a sustainable future.

Prepare your company for the future of carbon reporting today. Contact CarbonOne to learn how our next-generation Carbon Intelligence Platform can help you accurately measure and manage your carbon emissions across your entire value chain. Let’s work together to meet your Net Zero goals and stay competitive in a global market.

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5 Reasons Why Canadian Companies Need to Measure Carbon Emissions Starting In 2024

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5 Reasons Why Canadian Companies Need to Measure Carbon Emissions Starting In 2024

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