Canada tech boards urged to tackle growing climate risk

The Canada Climate Law Initiative has published a guide for boards and executives at Canadian technology companies on climate-related financial risk and sustainability strategy.

Titled Climate-Conscious Boards: Leading Canada's Tech Firms to Sustainability, the publication is aimed at directors, officers and other industry professionals. It offers guidance on corporate strategy, governance and innovation as technology companies face extreme weather disruption, supply chain pressure and tighter regulation.

The guide examines fiduciary duties, new disclosure expectations and broader regulatory changes affecting Canadian technology groups. It also highlights examples from companies including Shopify, OpenText, Hootsuite and HP Canada in areas such as AI tools, renewable energy investment and supply chain management.

Sector Pressures

A warming climate is adding strain to an industry already grappling with the rapid expansion of energy-intensive artificial intelligence systems and data centres. For boards, climate issues are increasingly seen not just as environmental concerns, but as operational and financial risks.

Ed Ma, former VP General Counsel and Corporate Secretary of Thinkific Labs, said the sector faced a mix of commercial and regulatory challenges.

"Even as some political support for climate action falters, the tech sector faces urgent pressures, from the energy-intensive proliferation of AI and data centres to regulatory shifts and supply chain risks," Ma said.

He added: "Directors and executives who lead with robust climate governance can turn these challenges into opportunities for innovation and resilience. By upholding sustainability commitments, tech firms avoid hypocrisy, enhance stakeholder trust, and position themselves as global leaders in a climate-resilient future."

The report argues that board oversight now plays a central role in how technology companies prepare for changing climate rules and investor expectations. That includes assessing physical risks to operations, supply chain exposure and the business impact of disclosure rules spreading across jurisdictions.

Board Focus

For Canadian technology companies, the issue extends beyond compliance. Climate planning can affect access to customers, procurement decisions, energy costs and reputation, particularly for firms selling software and digital infrastructure to large corporate and public sector buyers.

Karim Amlani, Senior Director, Legal at Hootsuite, said governance decisions made now would shape companies' resilience over time.

"Considering the business impacts of climate change is not just good practice-it's imperative for future-proofing Canadian tech firms. Executives that take action today will position their companies as leaders in a competitive market," Amlani said.

The guidance is part of a broader effort by the Canada Climate Law Initiative to frame climate change as a boardroom issue linked to legal duties and business judgment. The organisation works with businesses and regulators on climate governance and is led by law professors at the University of British Columbia and York University.

Ryan Black, partner at DLA Piper Canada, also contributed to the guide and stressed the need for practical board responses rather than broad ambition alone.

"Climate-conscious governance isn't just about long-term vision-it requires real-world strategies that balance marketplace realities with practical solutions. This guide serves as a roadmap to work through the climate challenges facing Canadian tech companies," Black said.