Key Sustainability Trends Shaping Canadian Business in 2026

As Canada heads into 2026, ESG is becoming a decisive factor in how companies compete, invest, and build trust in the market. Indeed, sustainability is no longer framed as a voluntary commitment or reputational add-on. Specifically, it is increasingly influencing access to capital, regulatory exposure, and long-term business resilience. With tighter scrutiny of climate and sustainability claims, the rollout of a national sustainable investment taxonomy, and rising expectations from investors and stakeholders, Canadian companies are operating in an environment where transparency and measurable performance define credibility.

ESG in 2026 is about execution, accountability, and economic relevance in a rapidly evolving global landscape.

The eight (8) most important trends shaping Canadian business are:

1. Launch of a National Sustainable Investment Taxonomy

Canada is developing its own sustainable investment taxonomy to label and classify “green” and “transition” investments, with the initial system expected to be released by the end of 2026. This framework aims to guide capital toward net-zero activities, increase clarity for investors, and improve comparability with international taxonomies.

2. Mandatory and Enhanced ESG Disclosure

Canadian regulators and stakeholders are pushing for stronger ESG reporting requirements. Large financial institutions and public companies already face evolving climate-related disclosure obligations, with frameworks aligned to international standards (such as IFRS and TCFD-style reporting).

3. Regulatory Scrutiny and Greenwashing Controls

Companies in Canada are facing stricter scrutiny over ESG claims and practices designed to curb greenwashing, including changes linked to competition and advertising rules affecting sustainability claims. Cases like RBC’s adjustment of sustainable finance goals highlight legal and reporting risks.

4. Sustainability Jobs Rebound in 2026

Following a temporary slowdown, demand for sustainability professionals is expected to rebound in 2026. Employers are increasingly seeking talent that can connect sustainability with finance, risk management, data analytics, and carbon metrics.

Key growth roles include:
• Energy management and efficiency
• Carbon finance and carbon accounting
• ESG reporting and corporate sustainability leadership
• Circular economy and resource optimization specialists
• Sustainable supply chain and procurement professionals

5. Supply Chain Visibility and Carbon Disclosure Accelerate Through AI

Pressure from customers, investors, and business partners is intensifying around Scope 3 emissions transparency. Artificial intelligence and advanced analytics are becoming essential tools to collect, validate, and analyze complex supply chain and carbon data at scale.

6. Assurance and Audit-Ready Sustainability Reporting Expands

Even as U.S. federal mandates remain unsettled, companies are increasingly adopting voluntary external assurance for sustainability and emissions data. This trend reflects growing investor and client expectations and a stronger focus on risk management, credibility, and greenwashing prevention.

7. Nature and Biodiversity Gain Financial Materiality

Nature-related risks are moving into the financial mainstream. Frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), combined with growing investor scrutiny, are making biodiversity and water risk assessments core elements of sustainability evaluation, particularly in agriculture, water-intensive industries, and real estate portfolios.

       8.ESG is boosting profitability

A Meta-Analysis of about 2,000 Studies, including CSE’s 2025 research, which takes place annually since 2022, shows a positive correlation between ESG-Sustainability and financial performance overall. CSE’s research in the top 10 most profitable companies from each sector (for 21 sectors) in the US and Canada shows a very strong correlation between financial success and structured ESG practices and Ratings

Stay Ahead with the latest trends and skills in Sustainability and ESG with CSE’s leading program in Canada and globally.

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• Advanced knowledge of sustainability trends, including renewable energy, supply chain practices, and climate risk reporting.
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