From Pledge to Power: Translating ESG Goals into Renewable Energy Demand

Corporate sustainability targets are often overlooked in financial reports, but together they add up to a significant economic opportunity. This report translates the Scope 2 emissions targets of the top 100 companies on the Toronto Stock Exchange into renewable energy demand and finds they will need roughly 7.7 GW of renewable energy by 2040 to meet their goals. More than half of that, 3.9 GW, is needed by 2030, the most common target year among the companies analyzed.

The demand spans 12 industries and eight provinces. Ontario accounts for 54 per cent, followed by Alberta at 19 per cent and Quebec at 11 per cent. Retail trade drives the largest share at 37 per cent, despite representing just four per cent of current Scope 2 emissions. Utilities and agriculture, forestry, fishing and hunting produce a large share of emissions relative to their demand, suggesting room to raise their targets.

Today, only Alberta, Nova Scotia and Ontario have markets that support corporate renewable energy procurement. The 3.66 GW of corporate deals signed to date have generated more than $7.5 billion in capital investment and over 7,000 jobs. Provinces that enable virtual power purchase agreements stand to attract the investment, jobs and municipal tax revenue that come with meeting this demand.