New report shows climate transition planning is key to Canadian competitiveness

Business Future Pathways marks launch with inaugural research release

TORONTO — Oct. 21, 2025 — Canadian companies risk falling behind global peers unless they act now to prepare for climate disruption, according to a new research report released today. The report shows how climate transition planning can protect competitiveness and unlock growth for businesses and investors.

Pathways to Competitiveness: How Transition Plans Can Help Canadian Businesses Compete and Grow, is the first in a series of research and guidance publications from Business Future Pathways, a finance-led, investor-endorsed initiative that marked its official launch today.

The report outlines that most Canadian businesses have yet to publish credible transition plans, leaving them more exposed to rising costs and missed opportunities as competitors in Europe, Asia and emerging markets move to strengthen resilience and market access. It concludes that transition plans are an essential tool to help companies assess climate risks, prioritize investments, align strategy, leverage opportunities and engage investors and stakeholders effectively.

“Canadian businesses can’t afford to stand still while global competitors move ahead with transition strategies,” said Barbara Zvan, President and Chief Executive Officer of University Pension Plan and Chair of Business Future Pathways’ Financial Advisory Committee. “Business Future Pathways’ guidance offers a foundation for credible transition plans that investors expect. Companies that act decisively will boost their competitiveness and attract capital, while those that wait risk being left behind.”

“This report provides a clear-eyed view of where Canadian companies stand on climate transition planning and what’s needed to close the gap,” said Jonathan Arnold, Director, Sustainable Finance, Canadian Climate Institute, and a member of Business Future Pathways’ secretariat. “It shows that transition plans are a powerful, underused tool that help businesses stay profitable through disruption, and position themselves for success in future markets where resilience and low-carbon performance are essential.”

Business Future Pathways provides practical, internationally aligned guidance to help Canadian companies develop credible climate transition plans. Its mission is to close the gap between businesses and investors by defining what “credible” looks like in a Canadian context, so companies can attract capital, maintain market access and compete in a decarbonizing world.

The report identifies several key benefits of transition planning, including improved internal capacity, stronger strategic alignment, better engagement with capital providers and a stronger position in global value chains. It also highlights gaps in Canadian uptake, and the lack of harmonized expectations across financial institutions, a challenge Business Future Pathways aims to address.

“This report from Business Future Pathways highlights the benefits of climate transition planning, given the evolving landscape for climate disclosures,” said Ariane Bourassa, Head of Sustainability and ESG Strategy at TMX Group. “We look forward to working with Business Future Pathways partners, in consultation with Canadian businesses, to develop a common understanding of what constitutes a credible transition plan in Canada’s unique context. The development of practical guidance will be a step forward in supporting access to global markets and securing capital from a wider pool of investors as Canadian businesses of all sizes navigate the transition and build a competitive and resilient economy.”

“Climate risk is business risk,” said Gildas Poissonnier, Chief Sustainability Officer, Desjardins Group. “Canadian companies that embed climate transition planning into their strategy today will be better positioned to compete, innovate, and thrive in tomorrow’s economy. Through initiatives like Business Future Pathways, which provide practical tools and insights, we can help businesses navigate the transition and turn climate challenges into strategic opportunities.”

“Transition planning is critical to future competitiveness,” said Morgan McDonald, Director, Corporate Sustainability, Ledcor Industries Inc. “It helps companies communicate and align with their value chain partners and demonstrate how they will remain viable along their journey. Business Future Pathways and its inaugural report are a valuable addition to the landscape of tools and processes that help companies to optimize their climate strategies.”

Today’s release marks the first in a series of research and market guidance expected into 2026, including:

• A simple and user-friendly framework on what constitutes a credible transition plan, grounded in Canada’s unique context, challenges, and decarbonization pathways
• Sector-specific guidance for high-priority sectors within the Canadian economy that are highly exposed to climate change and also have opportunities in the energy transition
• Case studies and user guides showcasing best practices in the Canadian context, including the role of industrial policy

These resources will provide practical, actionable support for companies of all sizes, whether public or private, that seek to build climate readiness and compete in a rapidly changing global economy.

For more information, visit businessfuturepathways.ca. A full list of the secretariat, financial advisory committee and technical advisory committee members is available here.

To request interviews, please contact:

Jess Harris
Director, Temple Scott Associates
437-227-6123
jharris@tsa.ca