{"id":54941,"date":"2025-08-08T16:50:13","date_gmt":"2025-08-08T16:50:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/54941\/"},"modified":"2025-08-08T16:50:13","modified_gmt":"2025-08-08T16:50:13","slug":"amid-trump-tensions-does-sustainability-still-matter-for-canadas-biggest-corporate-buyers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/54941\/","title":{"rendered":"Amid Trump tensions, does sustainability still matter for Canada’s biggest corporate buyers?"},"content":{"rendered":"

In 2023, the Business Development Bank of Canada (BDC) surveyed more than 100 major Canadian buyers and 1,200 suppliers<\/a>. The results were clear:\u00a082% of large Canadian buyers already required their suppliers to meet at least one ESG (environmental, social or governance) criteria, and more than half of the remaining 18% planned to implement such requirements within two years.<\/p>\n

That was before the return of Trump, a new wave of trade tensions, and a looming recession. So we asked ourselves this question: has anything changed for Canadian businesses?<\/p>\n

We don\u2019t think so\u2013 and here\u2019s why.<\/p>\n

Canada\u2019s biggest buyer \u2013 the government \u2013 still sets the tone<\/p>\n

The federal government is by far Canada\u2019s biggest buyer, and despite fiscal tightening, Canada\u2019s\u00a0sustainable procurement policy<\/a>\u00a0remains in place. It requires federal departments and agencies to integrate environmental and social considerations into their purchasing decisions. With Prime Minister Mark Carney expected to uphold this framework, we anticipate continued pressure on suppliers to demonstrate ESG alignment. This has clear trickle-down consequences, including at the provincial and Crown corporation level, for example with the Ontario Education Collaborative Marketplace (OECM), Ontario\u2019s not-for-profit that helps its public sector (schools, municipalities, etc.) buy goods and services more efficiently. We have been helping OECM develop an ESG strategy since 2022,which led to it including 45 questions related to ESGI (ESG and Indigenous relations) in its supplier evaluation methodology<\/a> in 2024, among other initiatives.<\/p>\n

Big corporations are also staying the course<\/p>\n

According to our analysis of Canada\u2019s top 15 corporate buyers (shown in the table below) representing an estimated $440 billion in spending, while the depth and maturity of their policies vary, the trend is clear: large Canadian companies are increasingly integrating sustainability into their procurement practices, driven by consumer demand, investor expectations, ESG commitments and reputational risk. Each of the top 15 currently has a sustainable procurement policy in place that includes sustainability criteria in supplier evaluations. It\u2019s never the first or only factor they look at, of course, but it\u2019s a factor. Examples of ESG criteria used in supplier evaluation go from the obvious greenhouse gas emissions and diversity, equity and inclusion practices to waste and water reduction, biodiversity, community investments, risk management and policies.<\/p>\n

Sustainability expectations of Canada\u2019s largest corporate buyers
\n\"\"Source: ESG Global Advisors<\/p>\n

Given the combined purchasing power of these organizations, as well as the robustness and complexity of their supply chains, this is also likely to have ripple effects across the broader Canadian market.<\/p>\n

Regulation is driving ESG down the supply chain<\/p>\n

Bill S-211<\/a>, now in its second year of implementation, mandates that companies report on how they are addressing\u00a0forced and child labour\u00a0in their supply chains. This is not just a compliance issue; it\u2019s a signal that\u00a0supply chain transparency is becoming a baseline expectation.<\/p>\n

The\u00a0Canadian Sustainability Standards Board launched its first disclosure standards in January 2025,<\/a> based on the International Sustainability Standards Board (ISSB) standards. While still voluntary, these standards align with international frameworks and include\u00a0Scope 3 emissions, which cover indirect emissions from a company\u2019s supply chain and typically represent 90% of companies\u2019 emissions, according to an analysis from McKinsey<\/a>. Companies that adopt these standards early will be better positioned as disclosure becomes mandatory.<\/p>\n

Whether it\u2019s Scope 3 emissions or human rights due diligence, the common thread across these standards is the need for\u00a0visibility beyond tier 1 suppliers \u2013 and in some cases, all the way to raw materials. This is a major shift in how companies manage risk and build resilience.<\/p>\n

Global markets are raising the bar<\/p>\n

As Canadian companies look to diversify away from the United States, they\u2019re encountering\u00a0stricter ESG regulations abroad \u2013 not just in the European Union, but also in China and other key markets (1,255 ESG policy interventions have been introduced worldwide since 2011, according to ESG Book research in 2023<\/a>, and 53 jurisdictions are using or preparing to adopt the ISSB standards, representing 57% of global GDP<\/a>, according to ESG Book research in 2025). Recent research by the Canadian Climate Institute<\/a> of the top 10 non-U.S. trading partners shows that countries responsible for buying $142 billion of Canadian goods in 2024 are by and large further along than Canada in terms of climate regulation. This global shift is pushing Canadian firms to\u00a0embed ESG deeper into procurement and vendor selection.<\/p>\n

Even in the United States, where ESG has become politically polarized, companies are still moving forward. According to EcoVadis\u2019s 2025 US Business Sustainability Landscape Outlook<\/a>,\u00a087% of U.S. companies are quietly increasing sustainability investments, even if they\u2019re not promoting them publicly.<\/p>\n

Investors, lenders and consumers are watching <\/p>\n

Canadian and international investors are increasingly demanding\u00a0robust ESG disclosures, including supply chain practices. And according to 2025 research by Millani<\/a>, even though Canadian investors are dialling back communications about their ESG integration activities, that doesn\u2019t mean they\u2019ve stopped. Some Canadian banks and lenders are also requiring ESG information during the lending process. Companies that can\u2019t demonstrate ESG alignment risk losing access to capital or trust.<\/p>\n

Recent data for consumers is harder to find, as most studies focus on the impact of tariffs, inflation, et cetera. There was, however, a plethora of studies done on the topic in the past few years, and even as inflation concerns were raging in 2024, according to a PwC survey<\/a> consumers were increasingly prioritizing sustainability in their consumption practices, as almost nine in 10 (85%) said they are experiencing the disruptive impacts of climate change in their lives.<\/p>\n

It\u2019s not just about compliance and winning contracts \u2013 it\u2019s about value <\/p>\n

Of course, overall investments are down, which affects the sustainability sector as well, and companies may hesitate to invest in ESG right now. But at the risk of repeating ourselves, beyond revenue and risk management, having a robust sustainability strategy can:<\/p>\n

reduce costs\u00a0in the medium to long term (e.g., through energy efficiency or waste reduction)
\nimprove supplier relationships through transparency, clarity and shared sustainability standards
\nenhance brand reputation through a clear, science-backed sustainability strategy
\nattract and retain talent by demonstrating purpose and environmental responsibility<\/p>\n

In short, ESG isn\u2019t just a reporting exercise \u2013 it\u2019s a\u00a0strategic advantage.<\/p>\n

Conclusion: The trickle is now a flow<\/p>\n

From winning procurement bids to regulation, investor pressure and global market access, the message is clear:\u00a0ESG expectations are increasingly cascading down the supply chain. While we understand that tariffs and general uncertainty are probably at the top of everyone\u2019s agenda, suppliers that are able to think long-term and get ahead of the curve will not only future-proof compliance, they\u2019ll win business.<\/p>\n

In today\u2019s economy, that\u2019s worth thinking about. If you\u2019re a supplier navigating this landscape, now is the time to act. As someone once said: \u201cNever waste a good crisis.\u201d<\/p>\n

Boris Couteaux is principal at ESG Global Advisors and Gur Simar Preet Kaur is an associate.\u00a0ESG Global offers a comprehensive range of ESG advisory services for companies and investors. <\/p>\n

Disclaimer: AI contributed to the creation of this article, but it was guided, reviewed and fact-checked by ESG Global\u2019s human experts. Please note that the content and material provided in this article is for general information purposes only. It is not to be taken or relied upon as legal advice and should not be used for professional or commercial purposes. The content is subject to change based on evolving regulatory reporting requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"In 2023, the Business Development Bank of Canada (BDC) surveyed more than 100 major Canadian buyers and 1,200…\n","protected":false},"author":2,"featured_media":54942,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[49,48,20662,44],"class_list":["post-54941","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-ca","tag-canada","tag-esg","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/54941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=54941"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/54941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/54942"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=54941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=54941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=54941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}