Reason #1 Why Canadian Companies Need to Measure Carbon Emissions Starting in 2024

As global pressures mount to combat climate change, Canadian grocery retailers are taking a crucial step by requiring suppliers to set science-based targets (SBTs) by 2027 for reducing greenhouse gas (GHG) emissions in the near term. These targets require companies to realize significant reductions over the next few years, without the use of carbon credits. This move aligns with the broader trend of companies recognizing the critical need to measure and mitigate their carbon footprint, particularly across the supply chain.

The Growing Importance of Science-Based Targets

Science-based targets are designed to align corporate emissions reduction efforts with the goals of the Paris Agreement, limiting global warming to well below 2°C. In recent years, many businesses have come under increased scrutiny from investors, customers, and regulators to demonstrate their commitment to sustainability through tangible actions. For grocery retailers, the pressure is even higher, as the agri-food sector is a significant contributor to GHG emissions globally.

Canadian retailers' push for suppliers to set these targets by 2027 is an important milestone. It acknowledges the need to act swiftly and puts mounting pressure on suppliers to act now as delays in measuring emissions and setting reduction goals make it harder and more expensive to meet future targets.

Scope 1, 2, and 3 Emissions: What Do They Mean?

To understand the targets, it’s essential to grasp the distinction between Scope 1, 2, and 3 emissions:

Scope 1 refers to direct emissions from company-owned or controlled sources, such as fuel combustion in vehicles or heating in facilities.
Scope 2 covers indirect emissions from purchased electricity, steam, or other forms of energy used by the company.
Scope 3, the most challenging to measure, encompasses all other indirect emissions that occur across the value chain, including supplier activities, product transportation, and even consumer use and disposal of products.

Scope 3 emissions typically make up the bulk of a company's total carbon footprint, often accounting for more than 80%. Addressing Scope 3 emissions is vital for any meaningful climate action, but it also presents the greatest challenge due to the need for data from across the supply chain.

Why Now? A Timeline for Action

By requiring SBTs by 2027, Canadian retailers are signaling the urgency of climate action. While it may seem like there is still time, companies need to get started now. Setting targets and reducing emissions takes time and by starting now, it will save companies from having to realize steeper, more costly reductions in a compressed time frame later on.

The longer companies wait to measure emissions, set targets and start reducing, the more difficult and costly it becomes. Getting started now will ensure companies are prepared for what’s coming while illustrating climate leadership to customers, consumers and other stakeholders.

What Suppliers Need to Do

For suppliers, meeting these science-based targets begins with accurate emissions measurement across all three scopes. Those who delay in taking action risk higher costs and ability to compete in a global Net Zero world. Innovative tools and platforms, such as CarbonOne, make it easy for suppliers to measure and manage their emissions across the entire value chain. Fortunately, not only does a Platform like CarbonOne’s make it easy for any Food and Beverage brand to measure, report and reduce emissions, it also exponentially reduces the cost and time required.

The Time to Act is Now!

The message from Canadian retailers is clear: climate action cannot wait. Suppliers must begin measuring their emissions and setting targets now to meet the 2027 deadline and achieve the prescribed near term reductions. These actions are not just critical for the environment—they are also necessary to remain competitive in a world increasingly focused on sustainability.

As this movement continues to gain momentum, suppliers must ask themselves: Are we prepared for the future of sustainable business? The time to act is now.

Contact us to learn more about how your company can measure and reduce its carbon footprint today to realize a competitive edge and a sustainable future.

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