Alarming research as well as climate change surveys, and the ratification of the Kyoto Protocol, have committed countries around the world to reduce their domestic greenhouse gas emissions. Global businesses are already subject to an expanding range of environmental legislation, energy efficiency standards, recycling targets and limits on hazardous chemicals. Regulation, consumer behaviour and technology innovation are the most prevalent climate change related drivers to shift a business to a lower carbon model.

Multinationals in Canada and around the world are embedding climate change and sustainability into their corporate strategy, identifying new market opportunities, taking advantage of cost reduction and revenue opportunities.

Companies are improving efficiencies, incentives, and identifying possible carbon offset/credit opportunities and renewable energy concepts, measuring their carbon footprint, and responding to unique industry requirements. In assessing the potential impact of these initiatives on their businesses, multinationals must also consider the implications of these changes in their intercompany transactions and existing transfer pricing policies.