How to join the Net-Zero Challenge
Who can join
All companies operating in Canada, including domestic and international companies and corporations and small- and medium-sized enterprises, can join the Net-Zero Challenge. Industry associations can also join the Challenge and can encourage their members to participate and support them in the development of their net-zero plans.
How to join
Companies can join the Challenge at any time. The first step to join the Challenge is for a company to identify its participation stream and sign our commitment letter indicating that it commits to achieving net-zero emissions by 2050 and that it will fulfill the requirements of the Challenge.
There are three different Commitment Letters.
- Most companies that want to join the Net-Zero Challenge will use the main Commitment Letter (PDF form) [101 KB].
- Industry or business associations that want to join may contact the Net-Zero Challenge at: defizeronet-netzerochallenge@ec.gc.ca to discuss.
- Commitment letters must be signed by a person with the authority to ensure compliance with the participation requirements, such as the Chief Sustainability Officer, the Chief Executive Officer, or another member of the company’s senior executive (C-suite level) leadership.
Please send your signed commitment letter to defizeronet-netzerochallenge@ec.gc.ca.
Shortly after submitting the Commitment Letter, companies can expect the Net-Zero Challenge to provide confirmation that they received the completed Commitment Letter and to provide information on next steps.
Participation streams
- Stream 1: Large emitters from industrial sectors
- Stream 2: Financial institutions
- Stream 3: All other companies, including small- and medium-enterprises
Scope of emissions
Scope of emissions is a way of categorizing and defining the direct and indirect emissions that an organization produces.
- Scope 1 emissions covers a company's direct emissions, principally resulting from activities undertaken by the company.
- Scope 2 emissions covers a company's indirect emissions from electricity, heating/cooling, or steam that a company purchases for its own use.
- Scope 3 emissions covers a company's indirect emissions that are not included in scope 1 or 2.
There are different requirements for each participation stream in the Net-Zero Challenge.
All participants must include scope 1 and 2 emissions, while there are different requirements for scope 3 emissions, as shown in Table 1.
Stream 1 | Encouraged to include relevant scope 3 emissions categories |
---|---|
Stream 2 | Must include scope 3 emissions category 15 (investments from Greenhouse Gas Protocol) and, if applicable, lending portfolio emissions |
Stream 3 | Must include the single most relevant scope 3 emissions category |
SMEs | Encouraged to include relevant scope 3 emissions categories |
Minimum requirements
By signing a commitment letter companies agree to:
- Set a net-zero emissions target for 2050 or earlier;
- Develop a preliminary net-zero plan within 12 months of joining the Challenge and a comprehensive net-zero plan within 24 months of joining;
- Set at least two interim emissions reduction targets consistent with achieving net-zero emissions by 2050 or earlier;
- Report on progress annually and review and update plans every five years;
- Complete Participation Checklists attesting to the content of net-zero plans and progress reports; and
- Conduct and make public climate-related financial disclosures (except small- and medium-sized enterprises).
For more detail on these requirements, please see the Technical Guide.
Service Standards
The Net-Zero Challenge adheres to service standards to ensure the effective and efficient delivery of the program. We are committed to adhering to the following service standards:
General Program Inquiry
- A response will be sent within five business days.
Commitment Letter
- A welcome email including both the Preliminary Checklist and the Comprehensive Participation Checklist will be sent within five business days.
- The Participation Letter will be sent within three weeks.
Submission of Checklists
- An email with next steps including the Participation Tier level and reminders of the next due dates will be sent within three weeks.
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