Climate change is no longer a distant concern—it is already reshaping Canada’s weather patterns, driving extreme events, and creating new uncertainties for businesses. For the country’s technology sector, the stakes are high. Energy-intensive data centres, global supply chains, and sprawling digital infrastructure leave tech companies exposed to both physical risks and evolving regulatory pressures.
Yet this challenge also presents an opportunity. With its innovation-driven mindset, the tech industry is uniquely positioned to turn climate risk into a competitive advantage, from cutting emissions to building resilient operations. Recognizing this, the Canada Climate Law Initiative has released a new guide to help Canadian technology firms identify climate vulnerabilities, strengthen governance, and seize strategic opportunities.
To explore these insights, CleanEnergy.ca spoke with Kirthana Singh Khurana, the guide’s author and a PhD candidate at UBC’s Peter A. Allard School of Law, and Ed Ma, K.C., a seasoned legal and governance leader in Canada’s tech and energy sectors. Together, they outline why addressing climate risk is no longer optional for technology leaders—and how boards can translate that risk into long-term sustainability and growth.
Why is it essential for Canada’s technology leaders to address climate-related financial risks and unlock sustainability opportunities now?
Ed: Even as some political support for climate action falters, Canada’s tech sector is facing urgent pressures. The rapid rise in energy demand driven by AI and data centres, combined with growing supply chain disruptions caused by extreme weather, is forcing companies to adapt quickly.
At the same time, investors, customers, and regulators are holding businesses to higher sustainability standards. Embedding climate governance at the board level compels business leaders to confront these challenges head-on—evaluating and addressing climate risks, anticipating disruptions, optimizing energy use, and driving innovation. This proactive approach not only mitigates risk but also builds stakeholder trust and transforms vulnerability into a competitive advantage.
What are the sustainability and climate-related regulations impacting technology companies?
Kirthana: Canadian tech firms must navigate a dynamic mix of regulations and incentives related to sustainability and climate. This includes voluntary disclosure standards introduced by the Canadian Sustainability Standards Board, such as CSDS 1, which outlines general requirements for sustainability-related financial disclosures, and CSDS 2, which focuses on climate-related financial disclosures.
Recent amendments to the Competition Act also aim to crack down on greenwashing, increasing scrutiny of environmental claims. In addition, companies can access federal and provincial tax credits, grants, and other incentives that support greenhouse gas reduction projects. Aligning business strategies with these frameworks not only ensures compliance but can also unlock new sources of funding and reputational benefits.
What is the role of technology companies’ directors in all of this?
Ed: Leading from the front, directors play a critical role in helping their firms withstand climate-related risks and capitalize on opportunities for innovation. As the ultimate stewards of resilience, directors must ensure that strong risk management plans are in place to respond to potential disruptions. They are responsible for embedding climate risk management into board agendas and for ensuring the company adheres to all relevant federal and provincial environmental regulations.
Given that boards primarily engage with a company through its management, how can they still effectively oversee and address climate-related risks and opportunities?
Kirthana: While it is common for the board to delegate specific tasks and responsibilities to committees, accountability remains with the board. Boards should support senior executives from a risk management, compliance, and strategy perspective, ensuring the sustainability, resiliency, and competitiveness of firms. They need to ask questions to ensure that the C-suite addresses climate-related risks and opportunities. The guide provides tailored questions to foster a proactive dialogue between boards and management. The questions are designed to help technology companies evaluate their climate governance, risk management, and strategic planning processes.
Which technology companies in Canada are leading the way in climate-conscious governance?
Ed: Several trailblazers demonstrate how sustainability drives competitive edge, such as Shopify, OpenText, Hootsuite, and HP Canada. These companies are leveraging sustainability as a competitive advantage through AI-driven solutions, renewable energy investments, and responsible supply chain management. Their successes illustrate that climate leadership enhances market positioning and operational resilience.