Sustainability reporting is becoming mandatory in major markets like the EU and California, with frameworks like ISSB and CSRD requiring Scope 3 disclosure.
Canadian exporters face concentration risk, with 77% of exports going to the U.S., diversification into Europe and Asia will demand ESG alignment.
Agriculture and multi-ingredient food processors face Scope 3 reporting challenges and may rely on proxies, certifications, and traceability to remain competitive.
SMEs can accelerate readiness via clear steps: align with ESG requirements, build GHG inventories, map product footprints, and create decarbonization plans.
Policy tools and partnerships matter— tax credits, funding, working with larger corporates and national trade associations can all support global growth.
Last month, Food and Beverage Ontario (FBO), in collaboration with Terrascope, hosted a webinar titled Export-Ready: Navigating Sustainability Regulations for Global Growth.
We covered how sustainability has become a non-negotiable feature of international trade. The shift from voluntary disclosures to mandatory, verifiable climate reporting is accelerating, particularly across Europe, Asia, and U.S. states like California. Canadian companies that export or supply those who do must act fast to meet evolving expectations.
Bringing together policy, finance, and sustainability experts, our panel featured:
We unpacked how emerging climate disclosure requirements are reshaping global trade, explored what this means for Canadian agrifood exporters, and how best to prepare. Together, they explored how sustainability is shaping market access, competitiveness, and investor confidence for Canadian exporters.
In my opening statement, I asserted that climate disclosures are now a core part of trade compliance in many jurisdictions. The EU’s CSRD, for example, requires companies to report on Scope 1–3 emissions, with third-party assurance and climate transition plans often mandated
But what will be top of mind for most Canadian exporters, have been with the recent trade barriers coming up in the USMCA. While some sources mention that USMCA compliance has gone up, the United States continues to account for 77% of Canada’s exports.
That level of concentration is a risk. Diversification into Europe or Asia means aligning with stricter sustainability rules, not just rebranding your compliance documents. Scope 3 emissions reporting is no longer limited to large multinationals. Buyers increasingly expect product-level carbon footprints, so if you’re part of their value chain, you’re already part of their disclosure.
Canadian companies are already using sustainability to differentiate themselves, not just comply. They’re making emissions measurable, traceable, and verifiable. For instance, my fellow panelist, Natasha, shared that a Saskatchewan grain co-op is piloting blockchain-based traceability, enabling verified low-carbon wheat exports to Japan and the EU.
In our eyes, it’s not just about compliance, it’s about telling a story buyers can trust.
Other companies have been building platforms to collect farm-level emissions data from suppliers, especially in dairy, seafood, and packaged foods. Verified climate claims are helping them win shelf space and preferred supplier status.
To me, climate performance is moving from cost centre to growth strategy, used to access new markets, reduce procurement risk, and justify premium positioning. Backing climate claims with reliable, accurate data is rapidly becoming an expectation for global trade.
Scope 3 emissions, those occurring in a company’s value chain, are the most difficult to measure and manage, especially in sectors like processed food, where ingredients are sourced globally.
As my fellow panelist, Susie, explained, the challenge is greatest for multi-ingredient processors who don’t own their supply. Measuring the carbon footprint of 12 inputs from six countries with perfect precision, is difficult. But her recommendation was this: start with the major contributors. Use regional proxies and certification programs like Field to Market Canada where direct data isn’t available. These provide credible baselines for key commodities like wheat, soy, or canola.
In some cases, standardized proxies and certifications can substitute for granular traceability, especially in less mature regulatory markets. As we put it in our discussion, if you don’t know your weaknesses, you can’t improve.
But you don’t need to be perfect to get started. Where full traceability isn’t feasible, focus on high-impact inputs and use sector-approved proxies, certifications, and regional datasets to build credible estimates. Here’s how to do it.
Readiness for global sustainability regulations doesn’t require starting from scratch, but it does require structure. We outlined six steps for getting there:
At this stage, especially for SMEs, a materiality assessment is critical for businesses to identify which ESG issues matter most to themselves and to their customers. It focuses on what is more material to your operational emissions, and where you should deliver targeted strategy.
Government entities like Export Development Canada (EDC) and the Trade Commissioner Service have also been providing practical tools, market data, and introductions to distributors & retailers abroad. Internal action, when paired with external support, can be financial, technical, and strategic to fast-track compliance and unlock new export opportunities.
For Canadian food and beverage exporters, the message is clear: credible emissions data is now essential for market access, as buyers tighten Scope 3 requirements in Europe, Asia, and even the U.S.
By proactively measuring emissions, engaging suppliers, and leveraging verification and certification, Canadian companies can transform sustainability from a compliance burden into competitive advantage.
Companies looking to take the first step can look towards tools like ours around emissions management and credible reporting can help fast-track readiness. At Terrascope, we help companies turn compliance into business value, transforming complex supply chain emissions data into clear, decision-useful insights.
With MC Agri Alliance, a global agri-food company, our collection of detailed activity data and emissions drivers revealed a critical decarbonization opportunity for the company’s operations. Unlocking as much as 25% emissions reduction in processing emissions, our simulations showed the possible emissions generated simply by changing the processing location and transportation route of a key commodity. Such a strategy has also been cost effective, with less fuel used in transportation translating directly to cost savings.
If you’re curious how to turn disclosure into a strategic advantage, speak to us today. Learn how you can build trust with investors, unlock capital, and accelerate your transition to net zero.