Despite economic and geopolitical tensions shifting Canada’s policy focus away from climate change, major investors remain committed to preparing companies for a low-carbon transition. Prime Minister Mark Carney has emphasized the importance of Canada’s natural resources, particularly oil and natural gas, to bolster the economy amid U.S. trade pressures. The government’s push for new pipelines and LNG terminals aims to secure Canada’s role as a reliable energy supplier, but this has led to a slower pace in achieving net-zero goals.
A report by Climate Engagement Canada (CEC) reveals that institutional investors, managing $16.8-trillion in assets, are closely monitoring how large Canadian emitters handle climate risks. The 39 companies tracked show mixed progress, with more setting medium-term emission reduction goals but fewer disclosing long-term targets. Fifteen companies now report long-term greenhouse-gas reduction goals, down from 19 in 2023.
The CEC’s report highlights that 26 companies have plans for a low-carbon transition, up from 16 in 2023, and the number analyzing climate scenarios has nearly doubled. However, some companies have scaled back environmental messaging due to anti-greenwashing legislation passed in 2024. Notable improvements were seen in companies like Superior Plus Corp. and Lundin Mining Corp., while Emera Inc. saw declines in several areas.
A separate report by Royal Bank of Canada’s Climate Action Institute found that its climate action barometer fell for the second year, attributing the decline to policy shifts favoring major project development and reduced emphasis on carbon pricing. The bank noted that decarbonization capital has remained flat at $20-billion to $25-billion annually since 2022, far below the $60-billion yearly estimate needed for Canada to reach net zero by 2050. However, most executives surveyed reported that sustainability measures were manageable.