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

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

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;
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.

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.