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Net-Zero Emissions Primer for Professional Services Companies

Net-Zero Challenge

Net-Zero-Emissions-Primer-for-Professional-Services-Companies

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Section 1 - Primer audience

The objective of this primer is to help companies and organizations in the professional, scientific and technical services subsectors reach net-zero emissions by 2050. It can be used either by companies and organizations who are just starting out on their journey towards net-zero emissions, or those who are further along in the process and are looking for more concrete advice on what steps they can take.

1.1. Overview of the subsector

Companies in the professional services subsector provide expert advice and services to clients. They do not provide physical goods and are typically office-based, although employees may also work from home. The subsector can include:

The full list of the relevant North American Industry Classification System (NAICS) codes for this subsector are provided in Annex 1.

In Canada, there are more than 500,000 businesses in the professional services subsector, most of which are small or medium-sized enterprises (SMEs) ranging in size from a few to several hundred employees. The sector as a whole employed over 1.2 million people in 2024 and contributed a total of $133 billion to Canada’s gross domestic product (GDP) in 2022 (~ 6% of Canada’s total GDP). Total greenhouse gas (GHG) emissions from this subsector are estimated to be over 11 megatonnes (Mt) of carbon dioxide equivalent (CO2 eq) per year (~1.5% of Canada’s total emissions).

In most cases, professional services firms are not major emitters individually and will not have to make significant changes to their business model as the economy shifts to net-zero emissions. However, the subsector’s total emissions are still significant and must be addressed if Canada is to meet its net-zero target.

Section 2 - The shift to net-zero emissions

The purpose of this section is to provide relevant background and context on the shift to net-zero emissions, to help professional services companies understand their role in the transition and prepare to develop their net-zero strategy and plan.

This section describes why planning for net zero is important, and what the shift to net-zero will look like for companies and organizations in the professional services subsector in Canada. It also gives an introduction on how to measure emissions using internationally recognized GHG emissions accounting practices.

2.1. The importance of planning for net-zero emissions by 2050

For the professional services subsector, reaching net-zero emissions is important since the aggregate emissions from it are significant, even if those from individual firms are usually small. The subsector as a whole has a role to play in the global transition to net-zero. 

For individual companies in the professional services subsector, planning for net-zero emissions is important as it allows firms to prepare for the future. Companies can increase their resilience to climate risk, identify business opportunities, secure a competitive advantage in a decarbonizing market, and build their reputation with clients and investors. Net-zero planning is  also useful for complying with evolving regulatory standards and participating in voluntary emissions reduction programs (such as the Government of Canada’s Net-Zero Challenge ).

2.2. The shift to net-zero for the professional services subsector in Canada

This section describes what the shift to net-zero could look like for the professional services subsector as a whole in Canada. What this could look like for your company specifically is addressed in Section 3.

2.2.1. Where emissions in the professional services subsector come from

The activities of firms in this subsector are typically office-based. The main emissions associated with these activities typically come from the operation of business premises, travel and the purchase of supplies and services. Details on where these emissions typically come from are listed below:

Category: Business Premises

Description: Space and water heating, air-conditioning, lighting, powering computers and servers.

Explanation: These emissions come from fossil fuels burned on-site for heating, or from the electricity purchased and used on-site. Small amounts of emissions can also come from the refrigerants used in HVAC systems.

Relative magnitude of emissions: Low to high

Degree of company control: Low to high

Category: Travel

Description: Employee travel for business and commuting.

Explanation: These emissions result from gasoline or diesel fuel used for ground transportation (cars, buses, trains, etc.) and aviation fuel for air travel. 

Relative magnitude of emissions: Medium to high

Degree of company control: Medium to high

Category: Supplies & Services

Description: Purchased inputs for operations.

Explanation: These emissions result from gasoline or diesel fuel used for ground transportation (cars, buses, trains, etc.) and aviation fuel for air travel. 

Relative magnitude of emissions: Low to medium

Degree of company control: Low to medium

2.2.2. How to reduce emissions in the professional services subsector

There are several actions that can be taken to reduce emissions in the professional services subsector. Some actions are under the control of the company, whereas others are actions that need to occur across the broader economy. The main mitigation actions that need to happen in order for the professional services subsector to reach net-zero emissions are listed below:

Category: Business Premises

Actions Companies Could Take:

Actions Across the Broader Economy:

Category: Travel

Actions Companies Could Take:

Actions Across the Broader Economy:

Category: Supplies & Services

Actions Companies Could Take:

Actions Across the Broader Economy:

The emissions mitigation actions listed above cover emissions sources that can be quantified using internationally recognized accounting practices (see section 2.5 for more information). However, companies in the professional services subsector can also influence emissions in other ways, such as through:

Client Advice – A professional services company may influence emissions indirectly through the content of the advice they provide to clients. This is especially true for companies that design or manage projects related to the construction of buildings, infrastructure and manufacturing facilities, or involve the transport and energy sectors. In some cases, emissions reductions secured through client advice may greatly exceed the potential for direct reductions in the service company’s own operations. By staying abreast of developments in the fields in which they provide services, they may be able to identify solutions that could contribute to decarbonizing a client’s projects.

Professional service companies can also contribute through:

Knowledge Sharing – Ensuring staff receive ongoing training about climate change mitigation in the areas in which they provide advice and services. This allows staff to act as thought leaders, publicly sharing their achievements.

Branding – A company can market themselves as a net-zero leader, highlighting their ability to deliver low-carbon design or service solutions as part of their publicity. This can normalize net-zero planning and inspire others in the sector to take action.

2.3. Measuring GHG emissions

Accurately determining a company or organization’s emissions profile is critical to identifying where to direct mitigation actions. There are several widely accepted international resources that can be used to calculate a company’s GHG emissions. The two most prominent resources are the GHG Protocol, and the ISO 14064 standards.

2.3.1. The GHG Protocol

The GHG Protocol is the most widely used framework for GHG accounting and identifies, explains, and provides options for GHG emissions inventory best practices. It is used widely across many voluntary GHG initiatives, including the Government of Canada’s Net-Zero Challenge and the Science Based Targets initiative (SBTi).

The GHG Protocol adopts standard accounting categories companies can use to effectively communicate their emissions data with stakeholders, investors, and regulatory bodies. The GHG Protocol’s categorization provides a holistic view of a company or organization’s entire value chain This offers deeper insights into emissions sources and potential areas for cost and carbon reductions. These emissions categories will be referred to throughout this primer, and are as follows:

Scope 3 emissions

In the GHG Protocol there are fifteen categories for Scope 3 emissions:

2.3.2. International Organization for Standardization

The ISO 14064 standards can be used to quantify, monitor, report, and verify GHG emissions. Relevant standards include:

The ISO 14064 series is complementary to the GHG Protocol and companies could benefit from using both sets of guidance. Specifically, if a company wishes to have their GHG emissions inventory verified by an accredited third-party, it is recommended that they use the ISO 14064-1 standard. This ensures that their GHG emissions inventory is developed in a way that can be easily verified and compared to the inventories of other organizations.

Section 3 - Net-zero strategy and planning for professional services companies

The purpose of this section is to help professional services companies make a strategy and a plan to reach net-zero emissions by 2050 or earlier and position their company competitively in a net-zero world. This section is for companies who understand the background and context provided in Section 2 and are ready to take action.

Note that this primer is based on the typical activities of a firm in the professional services subsector. While it provides a guide to simplify the process of net-zero planning, your company or organization must apply it to your own specific circumstances to develop a path forward.

3.1. Corporate strategy in a net-zero world

Before creating a detailed net-zero plan, your company should create a corporate strategy that determines broadly how your company wants to position itself in a net-zero emissions world. Your company should research and evaluate both the external competitive landscape and the company’s internal strengths and weaknesses to determine the best path forward for the company.

Some of the questions you could ask include:

3.1.1. Net-zero business model

Next, you should reflect whether your company should make any changes to its business model.

For many companies in the professional services subsector, reaching net-zero emissions and operating in a net-zero world will not result in a significant change to their business models or everyday work practices. There will be changes in how office spaces are heated and how we move from place to place, but the daily work will not be affected. 

For certain companies, there may be a more significant change in their business, especially if their clients are currently in heavy emitting sectors such as construction, transportation or energy. If this is the case for you, your company should research these sectors and understand what the net-zero transition will look like for those sectors.

3.1.2. The competitive advantage of net-zero

Moving to net-zero is not just about managing risk—it also presents real opportunities.

In Canada, several industries are expected to expand and flourish over the coming decades. These include natural resource-based industries such as clean electricity generation, critical minerals mining, and bio-based production from forestry and agriculture. There will be ample opportunities across the professional services subsector to support this growth.

Businesses that take early action can gain a competitive edge, reduce costs, attract talent, and build stronger relationships with clients and investors. In many sectors, being ahead of the curve on climate action is becoming a mark of leadership and credibility.

3.2. Net-zero planning for professional services companies

Once you have an understanding of what the net-zero transition could look like globally and for your sector, and you have considered your company’s strategy in a net-zero world, you are ready to create a net-zero plan that will outline the tangible actions you can take.

This section goes over the steps your company will need to complete to create a credible and achievable net-zero plan, which include:

Step 1 - Create a base year GHG inventory

Step 2 - Identify GHG mitigation actions

Step 3 – Evaluate and prioritize GHG mitigation actions

Step 4 - Establish targets and develop an implementation timeline

Step 5 - Monitor implementation and periodically revise your plan

Details on how to complete each of these steps are given in the sections below.

For some professional services companies, doing a simple net-zero plan in house is possible. However, some companies may have more complex situations or lack the internal resources to create a credible net-zero plan. In these cases, companies may wish to avail themselves of external expertise in clean technology, the energy transition, energy and climate policy, and finance. For larger companies, developing and implementing a robust net-zero plan typically requires engagement from multiple departments. Planning is greatly facilitated by strong commitment and clear tone from senior management to ensure cross-functional collaboration and alignment on sustainability goals.

3.2.1. Step 1 - Create a base year GHG inventory

The first step in creating a net-zero plan is creating an inventory of your GHG emissions for a one-year period, which will be your base year . To create the base year inventory, you will need to set inventory boundaries for your organization, identify your sources of emissions, and quantify your emissions over 12 consecutive months.

Set inventory boundaries for your organization

Setting the inventory boundary allows you to determine what sources of emissions result from your activities and, accordingly, what emissions will need to be addressed in order to reach net-zero emissions.

Generally, inventory boundaries can be set through three criteria: equity share, financial control and operational control. Please refer to the following resources for details on how to set inventory boundaries for your organization:

Identify sources of emissions

The lists below shows common sources of emissions for professional services companies. Identify which of these sources apply to your organization.

Common sources of emissions for the business premises category:

Common sources of emissions for the travel category:

Common sources of emissions for the supplies and services category:

Once you have identified the sources of emissions, you will need to identify which category each emissions source falls into (i.e. Scope 1, 2 or 3), as described in the GHG Protocol.

While the list above identifies the most common sources of emissions for professional services companies, the full list of scope 3 emissions should be reviewed to determine whether there are any other sources that could be relevant to your business.

Quantify your emissions

Once emissions sources have been identified, you must quantify your emissions. This is done by gathering activity data and emissions factors that quantify the GHG emissions associated with each type of activity.

Activity data are quantitative measures of activities that result in GHG emissions. Examples of activity data could include:

Emissions factors are calculated ratios that specify the amount of GHGs that are emitted per unit of activity. Multiplying the activity data by the correct emissions factor will produce an estimate of total emissions associated with this activity.

There are several reputable organizations that provide publicly available emissions factors. ECCC provides the following resources to find emissions factors:

Other helpful resources to create your GHG inventory include:

3.2.2. Step 2 - Identify GHG Mitigation Actions

Once the base year GHG inventory is complete, the second step is to identify possible actions your company could take to mitigate those emissions. Possible mitigation actions for each category of emissions are given in the sections below.

If none of these mitigation actions are feasible for your company, you can consider purchasing carbon offset credits.

Business Premises

The top mitigation actions for GHG emissions from business premises are listed below. These possible mitigation actions are presented roughly in order of what will be the most impactful and practical, to the least.

Possible mitigation actions for space or water heating:

Possible mitigation actions for air conditioning & other electricity consumption (lighting, computers, servers, etc.):

Possible mitigation actions for refrigerants used in air conditioners or heat pumps:

Travel

The top mitigation actions for GHG emissions from travel are listed below. These possible mitigation actions are presented roughly in order of what will likely be the most impactful and practical, to the least.

Possible mitigation actions for employee commuting:

Possible mitigation actions for business travel:

Supplies & services

For most professional services companies, purchased supplies make a small absolute contribution to GHG emissions. Approaches to reducing emissions include:

Assessments of emissions from individual products can be time consuming. Therefore, the most practical approach is to work with major supply companies that offer reduced emissions alternatives.

Other

Companies in the professional services subsector can also influence emissions in other ways that are not directly measured in internationally recognized standards such as the GHG Protocol.

Client Advice – A professional services company may be able to reduce emissions indirectly through the content of the advice they provide to clients. For example, an engineering services company could recommend a decarbonized space and water heating system for a client’s new building. While reducing emissions through client advice may appear less tangible than some of the more direct measures listed above, it is an important means through which professional service companies can contribute to the overall decarbonization of the economy. Ensuring staff receive ongoing training about climate change mitigation in the areas in which they provide advice and services and routinely offering clients low or zero carbon options for realizing their projects are ways to capitalize on these opportunities.

Knowledge Sharing – Companies can act as thought leaders, publicly sharing their knowledge and achievements, learning from other leaders, and encouraging adoption of low carbon approaches.

Branding – A company can market themselves as a net-zero leader, highlighting their ability to deliver low-carbon design or service solutions as part of their publicity. This can normalize net-zero planning and inspire others in the sector to take action.

Carbon offset credits

Purchasing carbon offset credits is a mitigation action that can be taken when no other option is feasible.

Carbon offset credits represent GHG emissions reductions or removals generated from activities that are additional to what would have occurred in the absence of the offset project. These credits are generated from activities that go beyond legal requirements and a business-as-usual standard. Each offset credit generated by an offset project represents one tonne of CO2e reduced or removed from the atmosphere.

Today, most offsets are emissions reductions. But as the economy approaches net-zero, emissions reductions offset opportunities will decline as emissions fall across all sectors of the economy. Companies that do rely on offsets should therefore, over time, increase the proportion of offsets that come from carbon removals.

3.2.3. Step 3 – Evaluate and prioritize GHG mitigation actions

Now that several possible mitigation actions have been identified, companies will need to evaluate and prioritize them. Each company will have a different evaluation framework depending on various factors, including their level of ambition, financial position, resourcing and management support. Companies should also consider supporting Canadian businesses when selecting mitigation strategies.

Common factors that companies should consider when evaluating and prioritizing emissions mitigation actions are listed below:

Emissions impact:

Possible Pro(s):

Possible Con(s):

Technology maturity

Possible Pro(s):

Possible Con(s):

Capital cost

Possible Pro(s):

Possible Con(s):

Operation and maintenance (O&M) costs

Possible Pro(s):

Possible Con(s):

Availability

Possible Pro(s):

Possible Con(s):

Timing

Possible Pro(s):

Possible Con(s):

Lifestyle considerations

Possible Pro(s):

Possible Con(s):

Completing this analysis of the mitigation actions, along with understanding your company’s available resources and strategic priorities, can help identify the top mitigation actions that your company would like to pursue. You will complete this exercise based on the situation as of today but note that all of these factors are constantly changing.  This exercise will need to be repeated regularly as the landscape shifts.

3.2.4. Step 4 - Establish targets and develop an implementation timeline

Now that you have identified your main emissions sources and potential mitigation actions, it is time to assess what is possible within specific timelines, and to set targets.

Task 1: Consider Interim Targets to Reach Net-Zero by 2050

Targets provide crucial grounding for decarbonization efforts. They communicate a company’s ambition, allow the organization to coordinate its response, and provide a benchmark against which progress can be measured. Many voluntary initiatives, including the ECCC’s Net-Zero Challenge, require member companies and organizations to set interim targets as part of a plan to reach net-zero emissions by 2050 or earlier. This aligns with Canada’s legislative commitments to net-zero and the recommendation of the Science Based Targets initiative.

Interim targets are important to focus attention on what can be done in the short-term and to ensure progress. Some companies have adopted shorter term targets based on an aspiration to be a leader in their sector and/or to harmonize with Canada’s national goal of a 40-45% reduction in emissions by 2030. Nevertheless, interim targets are more likely to be achieved when they align with your strategic objectives and are grounded in a solid analysis of the costs, timing, and effectiveness of proposed mitigation measures.

Task 2: Draft an Implementation Timeline

The mitigation actions should be placed on a timeline to establish and/or confirm interim targets and to form the basis for a phased decarbonization plan.

In Step 3 , you evaluated several possible emissions mitigation actions, and this evaluation can help you determine a realistic implementation timeline.

Factors that influence the implementation timeline will include:

Task 3: Sum your emissions reductions over time

Each of the actions you have decided to take can be included in your plan together with the anticipated reductions over time. Summing up the proposed reductions at key interim dates (e.g. 2030, 2035, etc.) can then allow you to validate (or establish) appropriate interim targets.

It is important to remember that net-zero emissions can only be achieved if other organizations up and down your value chain are also decarbonizing their activities at the same time. Therefore, in consideration of this, the pathway to full decarbonization may be unclear. However, over time, as manufacturing, transport, and energy production are increasingly decarbonized, the carbon intensity of the goods and services needed by your business will in turn decrease and net-zero will become more achievable. Accordingly, fostering collaboration and maintaining open communication with your value chain partners will be essential to accelerating the transition and providing greater clarity around your own net-zero plan.

3.2.5. Step 5 - Monitor implementation and periodically revise your plan

Full decarbonization of the economy will take time. It is hard to anticipate developments five years from now, let alone in 30 years. Net-zero planning will necessarily be an iterative process, with plans adjusted periodically to reflect changing circumstances – including technological, economic, social and geopolitical – and as the whole economy moves towards net-zero emissions.

You should establish a regular process for monitoring the implementation of your plan, such as:

Next Steps

If you are ready to take the next step, learn more about how to join the Government of Canada’s Net-Zero Challenge.

Glossary

Base Year
A year in history against which a company’s emissions are tracked over time to compare it with future emissions. It must be a consecutive twelve months, either as a full calendar year or consecutive over two calendar years. 
Carbon dioxide equivalent (CO2 eq)
A unit of measure for comparison between greenhouse gases (GHGs) that have different global warming potentials (GWPs). This unit of measure allows other GHGs to be expressed in terms of the GWP of one unit of CO2. To express GHG emissions in units of CO2 eq, the quantity of a given GHG is multiplied by its GWP.
Decarbonization
The process of reducing carbon dioxide emissions from a product, process, facility, or sector.
Direct emissions
Emissions from sources that are owned or controlled by a company or organization (GHG Protocol 2004: 97).
Downstream emissions
Emissions from downstream activities associated with the operations of a company. This includes processing of sold products, use of sold products, investments, franchises, downstream transportation and distribution, end-of-life treatment of sold products, and downstream leased assets.
Emission factor
A value that quantifies an average amount of emissions associated with an activity. For more details on Canada-specific emission factors, see the latest National Inventory Report for Canada.
Emissions
The release of greenhouse gases (or other substances) into the atmosphere.
Emissions inventory
A quantified list of emissions and emission sources for a company, organization, municipality, region, province/territory, or country.
Energy Efficiency
A measure of how effectively energy is used for a given purpose. It is a ratio or other quantitative relationship between an output of performance, service, goods, commodities, or energy, and an input of energy. 
Global Warming Potential (GWP)
Allows the comparison of the global warming impacts of different gases or particles (such as black carbon). It is a measure of how much energy the emissions of 1 tonne of a gas or particle will absorb over a given period of time, compared to the emissions of 1 tonne of carbon dioxide. For the purposes of net-zero planning, use of 100-year GWP is recommended.
Greenhouse gas (GHG)
A gas that absorbs and re-emits radiation, resulting in the greenhouse effect, which contributes to a warming climate. For the purposes of this guidance and for the Net-Zero Challenge, GHGs include all of those that are subject to reporting for the Greenhouse Gas Reporting Program. This includes carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur hexafluoride (SF6), 13 different hydrofluorocarbons (HFCs), and 7 different perfluorocarbons (PFCs).
Indirect emissions
Emissions that are a consequence of the activities of a company but occur at sources owned or controlled by another company (GHG Protocol 2004: 99).
Inventory boundary
Allows a participant to determine what sources of emissions are the result of their activities. The inventory boundary determines  what emissions will need to be addressed in order to reach net-zero emissions by 2050. Generally, the inventory boundary includes geographical boundaries and organizational boundaries.
Mitigation strategy
A practice, process, or technology that contributes to mitigation, e.g., enhancing energy efficiency and adopting renewable energy sources.
Net-Zero Challenge
A voluntary Government of Canada program encouraging businesses to develop and implement credible and effective plans to transition their facilities and operations to net-zero emissions by 2050.
Net-zero emissions
Achieving net-zero emissions means that anthropogenic emissions of greenhouse gases into the atmosphere are balanced by anthropogenic removals of greenhouse gases from the atmosphere over a specified period. For organizations, net zero GHG emissions is commonly considered as the condition in which emissions have been reduced such that only residual emissions remain, and offsetting is restricted to removal credits (ISO 14068).
Net-zero plan
A net-zero plan includes an emissions inventory and base year, interim targets, descriptions of the considered scenarios, pathways and mitigation strategies. It also includes an outline of how net-zero planning will be incorporated into a company’s governance and disclosures.
Offset credits
Represent GHG emissions reductions or removals generated from activities that are additional to what would have occurred in the absence of the offset project. These credits are generated from activities that go beyond legal requirements and a business-as-usual standard). Each offset credit generated by an offset project represents one tonne of carbon dioxide equivalent (CO2 eq) reduced or removed from the atmosphere.
Organizational boundaries
The boundaries that determine the operations owned or controlled by a company. These depend on the consolidation approach taken (equity share, operational control, or financial control).
Scope
Defines the operational boundaries in relation to direct and indirect emissions (GHG Protocol 2004: 101).
Scope 1 emissions
A company’s direct emissions. There are principally from   electricity generation, heat, or steam, physical or chemical processing, transportation, and fugitive emissions (GHG Protocol 2004: 101).
Scope 2 emissions
A company’s indirect emissions. There are associated with the purchase of electricity, heating/cooling, and steam for own consumption (GHG Protocol 2004: 101).
Scope 3 emissions
A company’s indirect emissions excluding those covered in scope 2. Also known as value chain emissions (GHG Protocol 2004: 101).
Upstream emissions
Emissions from upstream activities associated with the operations of a company. These include purchased goods and services, capital goods, fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, and employee commuting.
Value chain
All business processes or activities involved in the production of a good or service for market, from conception to end use and beyond. A simplified value chain would include corporate services (e.g., marketing, logistics), research and development, inputs, assembly, distribution, sales, and after-sales service.
Value chain emissions
These are indirect emissions that may exist upstream or downstream of a company’s operations. “Value chain emissions” are also known as scope 3 emissions.

Abbreviations

AI
Artificial intelligence
CH4
Chemical formula for methane
CO2
Chemical formula for carbon dioxide
CO2 eq
Carbon dioxide equivalent
DAC
Direct air capture
EV
Electric vehicle
GDP
Gross domestic product
GHG(s)
Greenhouse gas(es)
GWP
Global Warming Potential
HVAC
Heating, ventilation and air conditioning
ICE
Internal combustion engine
HFC
Shorthand for a group of chemicals called hydrofluorocarbons
ISO
International Organization for Standardization
kt
Kilotonne(s)
Mt
Megatonne(s)
NAICS
North American Industry Classification System
N2O
Chemical formula for nitrous oxide
PFC
Shorthand for a group of chemicals called perfluorocarbons
PPA
Power Purchase Agreements
REC
Renewable Energy Credit
SAF
Sustainable aviation fuel
SF6
Chemical formula for sulfur hexafluoride
ZEV
Zero emission vehicle

Annex 1 - North American Industry Classification System

Based on the North American Industry Classification System (NAICS), businesses and organizations in the professional, scientific and technical services subsector (NAICS code 541) include the following industry groups and industriesFootnote 5:

5411 - Legal services

5412 - Accounting, tax preparation, bookkeeping and payroll services

5414 - Specialized design services

54151 - Computer systems design and related services

54161 - Management consulting services

54162 - Environmental consulting services

54169 - Other scientific and technical consulting services

54171 - Research and development in the physical, engineering and life sciences

54172 - Research and development in the social sciences and humanities

54181 - Advertising agencies

54182 - Public relations services

54183 - Media buying agencies

54184 - Media representatives

54185 - Display advertising

54186 - Direct mail advertising

54187 - Advertising material distribution services

54189 - Other services related to advertising

54191 - Marketing research and public opinion polling

54192 - Photographic services

54193 - Translation and interpretation services

54194 - Veterinary services

54199 - All other professional, scientific and technical servicesFootnote 6

Annex 2 - Technology descriptions

Technologies described in

Electric heat pump

Description

An electric heat pump is a device that extracts heat from a low temperature place and delivers it to a higher temperature place. The two most common types of heat pumps are:

Applications

Heat pumps can be used for space heating, water heating and space cooling, replacing traditional HVAC technology (i.e. furnaces, boilers, ACs).

Considerations

Heat pumps are very efficient, often over three times more efficient than furnaces or boilers.

Heat pumps have a higher upfront cost than traditional HVAC equipment.

Additional resources

Heating and Cooling with a Heat Pump - Natural Resources Canada

District heating

Description

District heating involves distributing heat generated from a central plant to residences, businesses or industries in a local area. The central heat source can be generated from either from clean energy or fossil fuels.

Application

District heating is used to heat multiple buildings in close proximity.

Common applications include college and university campuses hospitals and densely populated residential or commercial settings.

Considerations

District heating has the potential to be a low-cost and efficient way to implement clean energy. 

Requires coordination and a large upfront investment. 

Additional resources

Combined Heat and Power Technology Fact Sheet Series: District Energy

District Heating - Energy System - IEA

Building envelope improvements

Description

Upgrading windows and doors to higher efficiency options can reduce heat loss from the building.

Controlling air leakage can greatly reduce heart loss from a building. A systematic identification of air leaks should be followed by sealing leaks through weatherstripping and caulking and by applying gaskets and tapes.

Adding insultation to a building’s walls, roof, attic, basement reduces the amount of energy required for heating and cooling. There are many different types of insulation materials, with different applications, efficiency and costs.

Applications

Residential and commercial buildings.

Considerations

Saves money on heating and cooling bills, while keeping building at a comfortable temperature.

Additional resources

Keeping the heat in - Natural Resources Canada

Smart thermostats

Description

A smart thermostat reduces the amount of energy required to heat or cool a building. It does this by learning the temperatures the occupants prefer and establishing a schedule that automatically adjusts to energy-saving temperatures while occupants are away or sleeping to help reduce energy usage.

Applications

Residential and commercial buildings.

Considerations

Saves money on heating and cooling bills, while keeping building at a comfortable temperature.

Additional resources

Smart Thermostats - Natural Resources Canada

Zero emission vehicles (ZEV)

Description

A ZEV is a vehicle that has the potential to produce no tailpipe emissions. They can have a conventional internal combustion engine (ICE) but must also be able to operate without using it.

There are three types of ZEVs:

Applications

ZEVs can be used to replace traditional ICE vehicles.

Considerations

The upfront costs of ZEVs are typically higher than and ICE vehicles, while fuels costs are lower.

When choosing what type of ZEV to select, one should consider available charging infrastructure, and the range of the vehicle required.

Additional resources

Types of zero-emission vehicles - Natural Resources Canada

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2026-03-12