By Dr. Colleen (Ollie) Kaiser, Sara M. Bechtold, Anik Islam and Caelan Welch

Canadian businesses are facing uncertain times. Rapid technological change, policy shifts, evolving markets and the physical impacts of climate change are creating risks - and opportunities. To remain resilient and competitive, businesses must plan for a range of possible futures.

Climate-related transition planning has emerged as a critical way for Canadian businesses to manage risk and navigate change. Yet for many Canadian organizations, expectations remain unclear, fragmented or poorly suited to Canada’s economic structure, regulatory landscape and regional diversity.

This research backgrounder provides a foundational analysis of climate-related transition planning and its relevance for Canada. Written for policymakers, regulators, investors and business leaders, it frames transition planning as a forward-looking strategic discipline rather than a narrow compliance or disclosure exercise. The backgrounder clarifies what transition planning entails and how it supports decision-making across an organization.

Importantly, it situates transition planning within Canada’s economic, regulatory and governance context, where a resource-based economy and regional diversity create unique challenges and opportunities. Drawing on international experience, the backgrounder identifies key barriers to effective uptake and assesses the current state of transition planning in Canada. It concludes by emphasizing the need to define what constitutes credible transition planning in the Canadian context.

Read Climate-related Transition Planning and Plans to explore how credible, science-aligned planning can prepare Canada’s economy for an uncertain future.

This backgrounder is a product of our Sustainable Finance research program, which examines how financial markets, policy frameworks and real-economy decision-making support a competitive, resilient and low-carbon Canadian economy. Our ongoing research will define Canada-specific criteria for credible transition plans and examine how policy can reduce uncertainty, improve comparability and unlock investment at scale.