In 2025, 91% of Canadian-listed companies (S&P/TSX Composite Index) published an annual sustainability/ESG/climate report, down from 95% the previous year, according to a study of 200 firms’ disclosures by Toronto-based law firm Torys.
The report notes that two thirds of the companies assessed have operations in the US and are therefore likely to consider trends and risks in both countries before reporting. Some companies stated in their disclosures that they did not provide sustainability report due to concerns over new Canadian legislation targeting greenwashing (Bill C-59).
The number of companies using the term ‘ESG’ in reports also dropped by 12% since 2024. According to Torys’ analysis, this reflects a shift away from politicised terminology to more neutral language such as ‘sustainability’.
The study also found that 39% companies set a target to achieve net-zero GHG emissions, compared with 45% in 2024. However, 56% of the sample firms set interim GHG emissions reduction targets, up from 39%.
While the number that disclosed their Scope 1 and 2 emissions decreased slightly from 88% to 86%, significantly more companies disclosed their emissions in accordance with the GHG Protocol (up from 54% to 72%).
Torys also found that governance practices on sustainability-related issues have improved over the last year. In 2025, 64% companies linked executive compensation to climate-related goals or metrics, up from 59% in 2024. In addition, 62% firms reported that most of their directors have specific sustainability expertise, up from 58% last year.
Companies:Torys
