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Net-zero benchmarking in Canada: an explainer for investors

With the arrival of 2025, we are now halfway through what scientists and the Paris Agreement have identified as the turnaround decade to address the climate crisis — an opportune time for climate-aware investors to assess their portfolios for the systemic risks posed by increased warming. But in an era of political upheaval, social strife and economic uncertainty, it can be challenging to sift through the noise and identify consistent, reliable, relevant data points that paint a true picture of companies’ progress in addressing climate risk. The Net Zero Benchmark by Climate Engagement Canada is one such tool.

Developed to be rigorously factual and data-driven while maintaining relevancy through a consistent, two-tiered governance process, the CEC Benchmark gives investors vital insight into how some of the highest-emitting companies on the TSX are working to reduce their carbon footprint. At a time when more and more investment decisions can fall victim to reactionary political movements, benchmarking like this provides savvy investors with an evidence-based edge in evaluating climate resilience in their portfolios.

What is the CEC Net Zero Benchmark?

The CEC Net Zero Benchmark is an assessment tool that drives corporate accountability on climate action. Evaluating 41 Focus List companies, the Benchmark measures progress toward net zero by 2050 using Disclosure Indicators and Alignment Assessments. Backed by more than 50 CEC investors representing over $7 trillion in AUM, this consistent framework tracks company commitments and performance, sharpens investor engagement strategies and aligns corporate action with the Paris Agreement. This powerful tool fosters transparency, strengthens dialogue, and accelerates meaningful progress toward a net zero economy.

Why is it important?

Rather than a traditional scorecard, the CEC Benchmark acts as a solution-focused roadmap for corporate climate action. With a rigorous methodology and robust evaluation and quality assurance processes, it offers investors a common standard to assess companies’ climate progress. The Benchmark highlights strengths, improvement opportunities and critical gaps, empowering investors to engage constructively with Focus List companies. This approach fosters progress by helping to manage climate-related risks and drive meaningful action toward a sustainable future. Focus list companies are also appreciative of the clarity from investors who bring a consistent set of climate action expectations.

How was it developed?

Inspired by Climate Action 100+ (CA100+), a global investor initiative focused on driving climate action, the CEC modelled its Benchmark on a similar tool from CA100+. The CEC Benchmark strives for alignment with the CA100+ Net Zero Company Benchmark, promoting a global standard for climate action. However, to support Canada’s unique realities, the CEC has further developed the Just Transition indicator, encouraging Canadian investors to align with national commitments such as the Truth and Reconciliation Commission’s Calls to Action and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). The CEC Benchmark was developed, refined and continues to be overseen and supported by the robust and comprehensive governance structure of the initiative.

What was SHARE’s role?

SHARE supports CEC as its Research and Engagement Secretariat, working to help deliver the CEC Benchmark. Each year, our team collects more than 870 annual company disclosures, oversees research with service providers, and conducts quality assurance in partnership with research collaborators. SHARE staff also coordinate communication with Focus companies, ensuring their feedback is considered before publication. After the final Benchmark scores are released, the CEC Engagement Secretariat facilitates constructive engagement between investors and companies, enabling shared accountability, building and communicating case studies, and driving progress on key indicators to advance corporate climate action.

What is the future of the CEC Net Zero Benchmark?

The future of the CEC Benchmark lies in its repeated use as a robust tool for measuring investor impact. With updated annual data, the Benchmark will continue to guide discussions and engagement with Focus List companies and track their progress. Enhanced insights into Benchmark trends will enable more effective collaboration and drive meaningful dialogue with high-emitting Canadian corporate issuers, supporting CEC’s overarching goal of fostering a just transition to a net zero economy.

How can investors learn more about the Benchmark and get involved with the CEC?

Investors wishing to learn more about the work of Climate Engagement Canada, including the Net Zero Benchmark, can visit the CEC’s website. If you’re an investor looking to get involved, you can contact the CEC Secretariat. And in November of each year, take a moment to see how Climate Engagement Canada’s focus list companies are progressing, and let companies know you are tracking their progress using this tool.

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Written By:

Amanda Carr

As Associate Director, Climate Advocacy, Amanda brings two decades of experience in understanding environmental policy, regulation and business risk to her work at SHARE.  Earlier in her career, Amanda spent a lot of time using her environmental science degree in the field: From being the boat driver for a team of whale researchers, swimming the Santa Cruz watershed counting salmon, to walking rice paddies to develop mitigation strategies for power distribution projects in Vietnam, these “rubber boots on the ground” experiences fuel her passion for working with business on systemic solutions for our planet.

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