More companies are reporting emissions even as actual reductions lag: report

TORONTO – A new report shows Canadian companies are slowly improving their reporting on carbon emissions and other key climate change data, but that progress remains uneven and needed emissions reductions aren’t happening.

The study from the Institute for Sustainable Finance at Queen’s University’s Smith School of Business found that 79 per cent of firms on the S&P TSX Composite Index reported emissions from their own operations in 2023, up from 72 per cent in 2021.

But looking at the data on a market capitalization basis shows a decline to 88 per cent from 91 per cent over the same period because several energy producers removed sustainability disclosures after the federal government passed anti-greenwashing rules last year.

Disclosures of less direct emissions, such as from the burning of gasoline in a car rather than its production, is still at a much earlier stage, with just under half of firms on the TSX at least partially reporting the so-called scope three data.

Yrjo Koskinen, director of research at the institute, says the study shows modestly positive developments, but that mandatory disclosures, at least for large companies, would make for more consistent and comparable data.

He says it’s important to increase emission disclosures so investors can properly weigh the climate risks faced by firms, and to better compete for international capital.

“If we want to get market share in Asia or Europe, we have to take this sustainability issue pretty seriously,” said Koskinen.

“Otherwise, we will be easily grouped with the Americans … Canada has to show that we care about these issues and that they could be a source of competitive advantage.”

The Canadian Securities Administrators in April halted work on mandated climate disclosures, citing shifts in the U.S. where the government in March ended efforts to enact disclosure policies. 

The data that is available shows some Canadian sectors are making progress on emissions, while others are not.

Between 2019 and 2023 the utilities sector saw a 40 per cent decline in emissions, while the energy sector had an almost 10 per cent increase, the report said.

On an intensity basis, measuring carbon emissions per millions of dollars in revenue, the energy and industrials sectors got worse, while materials and especially utilities improved.

Overall though, there’s a clear lack of total emissions reduction happening, said Koskinen.

“It’s nice to know how much carbon companies emit, but eventually, the reason for this is ‘OK, we can start managing this problems better,'” he said.

“Progress is painfully slow in Canada.”

This report by The Canadian Press was first published Sept. 25, 2025.