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Canadian companies are making progress on climate transition planning despite weakening long-term emissions commitments and an increasingly challenging policy environment, according to a report from Climate Engagement Canada (CEC).
The investor-led initiative’s fourth annual Disclosure Benchmark, released Thursday, assessed the publicly disclosed climate practices of 39 major Canadian corporate emitters in sectors including energy and utilities.
The findings show a mixed picture, with improvements in decarbonization strategies, climate scenario analysis and capital allocation, even as fewer companies publicly commit to long-term emissions reductions.
“The benchmarking shows that corporate climate planning has been resilient despite recent challenging times,” Barbara Zvan, president and CEO of University Pension Plan and chair of CEC’s steering committee, said in a press release.
“The four-year record provides a broader view of how publicly disclosed climate practices are evolving, rather than a simple story of progress or retreat.”
According to the report, 26 companies, or 67% of those assessed, disclosed climate transition plans in 2026, compared with 16 companies in 2023. The number conducting quantitative climate scenario analysis increased to 23 from 12 over the same period.
Eight companies disclosed commitments related to climate-aligned capital allocation, up from none in 2023.
Ambitions over the longer term are slipping
However, longer-term climate commitments have weakened. Just 15 companies disclosed net-zero ambitions in 2026, down from 18 in 2023, while the number reporting long-term greenhouse gas reduction targets declined to 15 from 19.
Medium-term emissions targets remained relatively stable, with 29 companies reporting such commitments.
The report also raised concerns about corporate engagement with climate policy.
Separate assessments conducted by InfluenceMap found no company received a grade indicating broad support for science-aligned climate policy. More than half of the companies assessed were considered misaligned through their industry association activities.
“Focus List companies continue to serve as more hindrance than help to ambitious climate policy in Canada,” said Charlie Bain, senior analyst at InfluenceMap.
Despite this, investors emphasized the importance of maintaining pressure on companies to address climate risks and strengthen transparency.
Kevin Thomas, CEO of SHARE and a member of CEC’s steering committee, said investors should focus on near-term corporate decisions rather than solely on long-term pledges.
“We don’t get distracted by reductions in long-run targets. The long run is the result of successive short runs, and our results tell us the real work is getting done in the short to mid-term.”
CEC said its findings underscore the importance of continued investor engagement as companies navigate shifting economic conditions, evolving climate policies and the transition toward a low-carbon economy.
The report comes as the UN holds its 31st climate summit in Antalya, Turkey, from Nov. 9-20.
Canada is making climate finance a priority at the COP31 summit as developing countries face growing funding challenges following U.S. foreign aid cuts and declining contributions from other wealthy nations.
The federal government has pledged approximately $5.9 billion in international climate finance over five years, aiming to mobilize a total of $13 billion with private-sector investment. While Canada is among the few countries to announce new climate finance commitments beyond 2025, details on how the funding will be distributed remain unclear, with advocates hoping for greater clarity at COP31.
