The federal government will compel government suppliers to disclose their green house gas emissions and reduce the carbon footprint in construction material, Treasury Board President Mona Fortier announced on Feb. 28.
“To put it simply, our government has a responsibility and a unique opportunity to lead by example in greening all of our operations,” Fortier said after highlighting the federal government is the largest property owner and public buyer in Canada.
“Championing sustainable procurement strategies will help decrease our environmental footprint, while creating market opportunities for Canadian owned companies producing green goods.”
Fortier announced that government suppliers for contracts over $25 million will be incentivized or required, as of April 1, to disclose their green house gas emissions and set reduction targets.
The government’s database of suppliers lists 127 individual contracts of over $25 million last year, reported The Canadian Press.
Fortier said suppliers can do so by joining the government’s Net-Zero Challenge or another internationally recognized equivalent standard.
The minister says the goal is to move federal suppliers towards net-zero carbon.
Fortier also announced a new Treasury Board standard for construction materials for government projects over $10 million.
The standard will first be applied to concrete and expanded subsequently, with businesses needing to disclose the “embodied carbon footprint” in the material and reduce it by 10 percent compared to the regional average baseline.
“As a government, we want to provide clear long term signals as a frame for investment decisions that align with Canada’s climate objectives,” said Environment Minister Steven Guilbeault who spoke alongside Fortier.
“What we do now can help shape long term market decisions that will last for generations.”
Guilbeault said over 40 businesses across Canada have enrolled in the Net-Zero challenge, including Microsoft Canada and 3M Canada.
The challenge requires participants to set a net-zero emissions target for 2050 or earlier, to report on progress annually, and to make public climate-related financial disclosures. There are no penalties if targets are missed.
The government claims adopting a net-zero plan can reduce business costs by switching to renewable energies and attract new investments from stakeholders.
Fortier and Guilbeault made their announcement from the GLOBExCHANGE conference in Toronto.
“Today, people complain that these international climate conferences are overrun with bankers and investors. I say this is a very good thing!”
The former activist said this is an indication that climate concerns are becoming mainstream in capital markets.
