BY SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT THE ALBERTA ENTERPRISE GROUP

There’s been a lot of debate lately in North America about whether governments are backing away from mandatory climate disclosure. But step back and look globally, and the trend is clear: disclosure is here to stay – and it’s spreading.

California recently passed sweeping climate disclosure laws requiring companies with over $1 billion in revenue to report greenhouse gas emissions and climate-related financial risks. With the fourth largest economy in the world and almost twice the size of Canada’s, California’s decision is not just symbolic – it’s market-shaping. Companies that want to do business there will need to comply.

And California isn’t alone. The European Union’s Corporate Sustainability Reporting Directive (CSRD), the United Kingdom, Japan, and New Zealand have all introduced mandatory frameworks. Australia and Singapore are following closely behind. For Canadian businesses, this means reporting will increasingly be a requirement to compete internationally.

But here’s the opportunity: climate reporting doesn’t have to be a cost; it can be an investment. By identifying emissions sources and inefficiencies, companies can cut waste, lower energy costs, and uncover savings that drop straight to the bottom line. In many markets, emissions reductions can also be monetized through carbon credits, turning reporting into a revenue stream.

Whether or not one agrees with the direction of climate reporting, AEG believes that businesses need to be prepared for potential requirements and ready to identify opportunities as they arise.

Learn more about California’s new law here: California Corporate GHG Reporting