New standards by the Canadian government will require large suppliers to disclose their GHG emissions and set targets to reduce them.
According to ESG Today, Canada’s new ‘Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets’ federal procurements greater than $25m will induce suppliers to measure and disclose their emissions and adopt a science-based target to reduce GHG emissions.
The supplier requirement can be fulfilled through the participation 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.
Canadian minister of environment and climate change Steven Guilbeault 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.”
Alongside the new rules, the government has also released a ‘Standard on Embodied Carbon in Construction’ which requires all new major government construction projects to report and reduce their embodied carbon footprint.
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