Starting April 1, the Government of Canada will require its major suppliers to disclose their greenhouse gas emissions and set reduction targets.
This was announced by the President of the Treasury Board, Mona Fortier, during her visit to the GLOBExCHANGE conference in Toronto on Tuesday.
The Treasury Board Secretariat press release states that “major suppliers to the Government of Canada will be required to disclose their greenhouse gas emissions and set reduction targets.”
However, the words used are confusing, as the same press release mentions that “Federal government procurements over $25 million should encourage suppliers to disclose their greenhouse gas (GHG) emissions and set targets. reduction “.
Asked whether companies will be “required to disclose”, therefore obliged, or whether they will be “encouraged” to do so, the director of parliamentary affairs of the office of the President of the Treasury Board provided these details: “In order to To provide a degree of flexibility to adapt to market conditions, specific requirements terminology will be specified in each supply contract. This could take the form of a requirement or an incentive. »
In an exchange with The Canadian Press, Scott Bardsley clarified that “there are two mechanisms that departments can use to incentivize suppliers to disclose and reduce their emissions as part of their procurement processes”.
One of these mechanisms would require the disclosure of targets and the other would “give additional points to suppliers who can provide proof of their participation in Canada’s Carbon Neutral Challenge or an equivalent program”.
The Carbon Neutral Challenge requires participants to set targets for net zero emissions by 2050, but there are no penalties if the targets are not met.
The federal government buys more than $22 billion worth of goods and services a year, but the government’s contract database lists only 127 individual contracts worth more than $25 million last year.