A growing number of top Canadian companies have committed to a net zero transition in the past year.
With the global temperature rising at dangerously high levels, we are facing a climate crisis. To avert the worst impacts of climate change, the rise in temperature must be slowed and greenhouse gas (GHG) emissions must decrease to net zero. Committing to a net zero transition means committing to cutting GHG emissions to as close to zero as possible and offsetting any emissions that remain by absorbing the carbon dioxide from the atmosphere.
The Canadian government has made a net zero transition one of its top priorities, and it has increasingly pointed out that companies must step up to help it achieve its ambitious goals. The enactment of the Canadian Net-Zero Emissions Accountability Act on June 29, 2021 legally binds the government’s commitment to reduce GHG emissions by 2030 and achieve net-zero emissions by 2050 in the country’s legislation. Along with ensuring there is transparency and accountability on the government’s work to deliver their targets, the act also requires independent advice and public participation in net zero efforts.
The need for public participation – especially from Canadian companies – in meeting their national targets and international climate commitments is further emphasized with the government’s creation of funds and initiatives that support a reduction in GHG emissions. The Net Zero Accelerator (NZA) initiative, tailored to companies incorporated in Canada, academic institutions, non-profit organizations, and the private sector, will provide up to $8 Billion to support projects that will contribute to a reduction in Canada’s GHG emissions. Furthermore, the government has allocated $35 Billion to the Canada Infrastructure Bank (CIB) for the purpose of investing in public-private partnerships that assist the development of sustainable infrastructures, such as public transit, and clean power. Further economy-wide strategies to reduce emissions were laid out in the first Emissions Reduction Plan (ERP) under the Canadian Net-Zero Emissions Accountability Act in early 2022. Policies with long-term targets and price trajectories regarding emissions were announced, these allow Canadian businesses to make informed investment decisions. These policies and initiatives are influencing more of the top Canadian companies to commit to a net zero transition aligned with that of the Canadian government.
Formal commitments towards a net zero transition make it clear that an economic transformation is happening – one that is committed to a net zero Canadian economy. Every industry is experiencing this transformation, from service to transportation to manufacturing, even fossil fuels. Here are the top Canadian companies committed to a net zero transition.
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Brookfield Asset Management
Annual Revenue: US$69.1 Billion
Industry: Services
Target: Net Zero Emissions by 2050
Brookfield Asset Management, headquartered in Toronto, Ontario, is one of the world’s leading alternative asset management companies. They manage approximately US$688 Billion of assets worldwide across real estate, infrastructure, renewable power, private equity, and credit.
The company has committed to reach net zero emissions by 2050 across all assets under management. They have also set an interim target of reaching a two-thirds reduction for scope 1 and 2 emissions – direct GHG emissions from the company’s operations and indirect emissions from the company’s purchases of electricity – by 2030.
Brookfield is one of the world’s largest investors in renewable power, and they intend to build on their position in renewable energy while also further accelerating the transition to net zero through a global transition investment strategy. The strategy will focus on investments that will accelerate the transition to a net-zero carbon economy.
Manulife Financial
Annual Revenue: US$58.3 Billion
Industry: Services
Target: Net Zero Emissions by 2050
Manulife Financial is a multinational financial services provider, which offers financial advice and insurance. Headquartered in Toronto, Ontario with operations in Canada, the United States and Asia they are Canada’s largest insurance company, and one of the largest fund managers globally.
Manulife is net zero in their operations due to carbon removals and offsets from owned and operated forests and farmland. However, they are committed to further reducing their operations carbon footprint by reducing scope 1 and 2 emissions by 35% by 2035 and having their investment portfolios be fully net zero by 2050.
Their plans to achieve a transition to net zero focus on three areas: their operations, investments and products and services. They plan to lessen their carbon footprint by reducing emissions, actively investing in green sectors, providing sustainable investing options for clients, and finally dedicating resources to develop nature-based solutions to capture more carbon per dollar invested.
Royal Bank of Canada
Annual Revenue: US$50.9 Billion
Industry: Services
Target: Net Zero Emissions by 2050
The Royal Bank of Canada (RBC) is a multinational financial services company, offering diverse services in personal and commercial banking, wealth management, insurance, investor services, capital markets and more. Founded in Halifax, Nova Scotia, now headquartered in Toronto, Ontario, they are the largest bank in Canada by market capitalization.
RBC has joined the Net-Zero Banking Alliance (NZBA) in their commitment to achieve net zero by 2050. The NZBA is an UN-convened alliance that brings together banks worldwide that are committed to aligning their lending and investment portfolios with net-zero emissions by 2050. The alliance was founded by 43 members in April 2021, and has since grown to encompass 113 banks, from 41 countries worldwide, representing approximately 40% of all global banking assets. RBC is one of eight Canadian banks a part of this alliance.
RBC is leading their commitment of a transition to net zero by 2050 through mobilizing $500 Billion in sustainable financing by 2025. They further aim to reduce GHG emissions by 70% by 2025 and increase their sourcing of electricity from renewable sources by 100%. They have also committed to transparency regarding their achievements towards their 2050 net zero transition, and have partnered with industry peers, governments, and standard setting bodies to advance shared methodologies.
Toronto-Dominion Bank
Annual Revenue: US$44.8 Billion
Industry: Services
Target: Net Zero Emissions by 2050
Toronto-Dominion Bank, commonly known as TD Bank, is a Canadian multinational banking and financial services corporation. It is a top 10 North American bank, and provides customers with a full range of retail, small business and commercial banking products and services.
TD was the first Canadian bank to announce their commitments to a net zero transition in 2020. They have since joined the Net-Zero Banking Alliance (NZBA), making it the second of the eight Canadian banks in the alliance. They are committed to achieving net zero emissions associated with their operations and financing activities by 2050, with interim emission targets for their two highest-emitting sectors: Energy and power generation by 2030.
In their commitment to a net zero TD announced the creation of the TD Sustainable Finance and Corporate Transitions Group, with the goal of providing clients with new advisory services and sustainability-focused financing globally. TD also announced they would no longer provide new project-specific financial services for activities that directly relate or contribute to the exploration, development, or production of oil and gas within the Arctic Circle.
Enbridge
Annual Revenue: US$37.5 Billion
Industry: Fossil Fuels
Target: Net Zero Emissions by 2050
Enbridge is a multinational pipeline company; it is one of North America’s largest energy infrastructure companies. Headquartered in Calgary, Alberta, it provides crude oil, natural gas, natural gas liquids, and renewable energy through an extensive delivery network.
Enbridge is committed to a cleaner future in energy, and they focus on transporting the energy they provide in a safe, reliable, and sustainable manner. They have announced commitments to fully transition to net zero emissions by 2050, with an interim goal of reducing the intensity of their operations GHG emissions by 35% by 2030.
Enbridge is working to modernize and apply new innovative technologies to their existing transportation and distribution systems that will both increase efficiency and reduce the emissions of existing infrastructure. They are also announcing solar energy projects across North America to self-power their operations with renewable energy; these projects are further boosted by their various investments into wind power, hydrogen, and renewable natural gas. Finally, they have stated that any residual emissions will be balanced through carbon offset credits that focus on nature-based solutions and renewable energy credits.
Bank of Montreal
Annual Revenue: US$29.1 Billion
Industry: Services
Target: Net Zero Emissions by 2050
The Bank of Montreal (BMO) is a multinational investment bank and financial services company. Founded in Montreal, Quebec, now headquartered in Toronto, Ontario, they are the eighth largest bank in North America. They offer a wide range of services including wealth management, retail banking, corporate banking, and investment banking products and solutions.
BMO is also a member of the Net-Zero Banking Alliance (NZBA), making it the third of the eight Canadian banks in the alliance on this list. They have committed to a net zero transition by 2050, with interim goals of maintaining carbon neutrality,100% renewable energy purchases for their operations and a 30% emissions reduction by 2030.
In 2021, BMO established the BMO Climate Institute to aid in their commitment to net zero. This institute was created to both bridge climate policy and science with business strategy and finance to unlock solutions for their clients and for the bank. They are also committed to partnering with their clients to help them adapt to sustainable finance options that will contribute to the transition to a net zero global economy.
Canadian Imperial Bank
Annual Revenue: US$21.6 Billion
Industry: Services
Target: Net Zero Emissions by 2050
The Canadian Imperial Bank of Commerce (CIBC) is a multinational banking and financial services corporation headquartered in Toronto, Ontario. They operate in Canada and abroad through three main divisions: retail and business banking, capital markets, and wealth management.
Along with the previous banks, CIBC also joined as a member of the Net-Zero Banking Alliance (NZBA), making it the fourth of the eight Canadian banks in the alliance. CIBC has pledged a full net zero transition by 2050, with interim goals of reducing the carbon intensity of their financed emissions in the oil and gas sector by 35% in scope 1 and 2 emissions and 27% in scope 3 emissions by 2030.
Their net-zero targets have been set based on four guiding principles; being science aligned, transparent, comprehensive, and iterative. CIBC is committed to basing their goals on credible climate science that is aligned with widely accepted decarbonization pathways. Furthermore, they are committed to providing clients with comprehensive goals and transparency in their methods, metrics, and progress.
Bombardier
Annual Revenue: US$15.8 Billion
Industry: Manufacturing
Target: Net Zero Emissions by 2050
Bombardier Inc. is a business jet manufacturer, it was formerly also a manufacturer of commercial jets, public transport vehicles, trains, and recreational vehicles. Headquartered in Montreal, Quebec, and present in 12 countries worldwide, they are a global leader in aviation, known for creating innovative and game-changing planes.
Bombardier has been a leader in the aviation industry’s progress to reduce the impact of air travel on climate change through the adoption of international regulatory frameworks to reduce emissions from aviation. They were a signatory to the Aviation Industry Commitment to Action for Climate Change and are an active leader of the General Aviation Manufacturers Association (GAMA).
The company is committed to achieve net zero emissions by 2050 and aims to contribute to limit the planets warming to less than 2°C in comparison to pre-industrial revolution levels. They are focusing on initiatives in increasing R&D for clean products and electrification, improving their operations energy efficiency, souring renewable energies, securing long term supplies of sustainable aviation fuels, and optimizing their carbon offsets.
Air Canada
Annual Revenue: US$14.5 Billion
Industry: Transportation Services
Target: Net Zero Emissions by 2050
Air Canada is the largest Canadian domestic and international airline measured by fleet size and passengers carried. The airline serves more than 200 airports on six continents and is one of the top 20 largest airlines in the world.
Air Canada created their Leave Less/Do More initiative in their commitment to a net zero transition. They plan to achieve the net zero transition by 2050, with interim goals of 20% reductions in air operation emissions by 2030 and 30% reductions in ground operation emissions by 2030.
Their Leave Less/Do More initiative includes strategies to both leave less carbon in the atmosphere, and less waste in land and water while also doing more to ensure the future sustainability of the environment. The Leave Less initiative includes programs for businesses to off-set the emissions related to their employees’ travels and transitioning away from single use plastics and other unnecessary waste on flights. The Do More initiative includes providing customers directly with ways to offset the environmental impact of their travels, programs to create scholarships for students committed to contributing to sustainability in their education, and finally fighting against illegal wildlife trade.
Cenovus Energy
Annual Revenue: US$14.4 Billion
Industry: Fossil Fuels
Target: Net Zero Emissions by 2050
Cenovus Energy is an integrated oil and natural gas company. Headquartered in Calgary, Alberta, they are committed to being a responsible developer of Canada’s valuable oil and natural gas resources. They have operations in Canada, the United States, and the Asia Pacific region.
Cenovus is committed to continuing to responsibly produce and deliver their oil and natural gas while also making efforts to address climate change. They have committed to achieving net zero emissions by 2050, with interim targets of a 35% reduction in their scope 1 and 2 GHG emissions by the end of 2035.
Cenovus’s commitment is centered around technological innovation, this includes investing in technology innovations, establishing partnerships, and expanding opportunities through their Innovation Gateway team that solely focuses on solving challenges related to carbon, cost, and revenue. Cenovus is also in collaboration with the Oil Sands Pathways to Net Zero Alliance – an alliance committed to achieve a phased reduction in emissions from oil sands operations to reach net zero by 2050 – and the Canadian federal and provincial governments to meet their climate goals.
