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.

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

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.

Table 1: Key Differences between Participation Stream Requirements (Scope 3)
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

Although the Challenge is a voluntary initiative, by signing a commitment letter companies agree to:

  1. Set a net-zero emissions target for 2050 or earlier;
  2. Develop a preliminary net-zero plan within 12 months of joining the Challenge and a comprehensive net-zero plan within 24 months of joining; or, for the Glasgow Financial Alliance for Net-Zero (GFANZ) members use the accelerated process highlighting net-zero planning already underway;
  3. Set at least two interim emissions reduction targets consistent with achieving net-zero emissions by 2050 or earlier;
  4. Report on progress annually and review and update plans every five years;
  5. Complete Participation Checklists attesting to the content of net-zero plans and progress reports; and
  6. 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.

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