This blog is co-authored by Simon Marmura Brown, Strategic Director of Research and Knowledge Mobilisation and Jasmeet Narula, Project Coordinator at the Pond-Deshpande Centre. This blog reflects their shared perspective on how New Brunswick SMEs can navigate reporting frameworks in practical and accessible ways.

Reporting Frameworks for New Brunswick SMEs:

A Practical Guide

Introduction

This summer’s record-breaking heat waves and wildfires were a powerful reminder that climate change is no longer a distant forecast—it’s here. But alongside the risks, these events also signal a clear opportunity for New Brunswick’s small and mid-sized enterprises (SMEs) to lead. By taking action now to measure, manage, and report emissions, businesses can not only protect themselves against disruption but also unlock new pathways for growth.

The shift to a net-zero economy is already underway. Canada has pledged to achieve net-zero greenhouse-gas (GHG) emissions by 2050, and New Brunswick has set a 2030 target of reducing emissions 46% below 2005 levels. These commitments are reshaping the global marketplace, where customers, lenders, and regulators are increasingly demanding credible and comparable sustainability data. For SMEs, this is more than compliance—it’s a chance to build resilience, strengthen relationships, and open doors to export markets.

Adopting recognized reporting frameworks allows SMEs to track and reduce their GHG emissions in ways that build credibility with communities and consumers, increase competitiveness, and attract investment. This guide outlines the major frameworks available, helping New Brunswick businesses see not only what’s required—but what’s possible.

The Greenhouse Gas Protocol (GHG Protocol): The Foundation for Opportunity

The GHG Protocol is more than just a measuring tool—it’s the global language of climate accountability. Nearly every other reporting framework is built on its foundation, giving businesses a way to turn climate data into opportunity. By using a common standard, New Brunswick SMEs can demonstrate to customers, investors, and regulators not only where their emissions come from, but also how they are taking action in a way that is transparent, credible, and comparable.

At its core, the GHG Protocol helps organizations map their carbon footprint across three categories: Scope 1 (direct fuel use, like heating or vehicles), Scope 2 (electricity use), and Scope 3 (the broader value chain, from supplier shipping to employee commuting). Its principles—relevance, completeness, consistency, transparency, and accuracy—ensure that reports carry weight and open doors.

For businesses, adopting the GHG Protocol is a strategic move. It highlights where efficiencies can cut costs, positions companies ahead of changing regulations, and strengthens brand trust with consumers who increasingly expect climate accountability. Far from being just compliance, the GHG Protocol is the first step toward competitiveness in a low-carbon economy—helping SMEs access new markets, partnerships, and growth opportunities.

Other Reporting Frameworks You'll Hear About

The International Financial Reporting Standards: IFRS S1 & IFRS S2

For decades, the International Financial Reporting Standards (IFRS) have set the global benchmark for financial transparency. Now, with the creation of the International Sustainability Standards Board after COP26 in Glasgow, these standards are expanding into sustainability—opening new doors for businesses to demonstrate resilience, attract investment, and strengthen market trust.

• IFRS S1 is the broad framework. It asks companies to disclose the sustainability issues that could affect their financial health. This shifts sustainability from being a "side issue" to a central driver of business success. By identifying environmental, social, and governance (ESG) factors that could impact long-term growth, companies can uncover risks—and opportunities—they might not have seen before.

• • Example : A forestry company might report on biodiversity and land management, turning stewardship into a competitive strength.

• • Example : A retailer could disclose how it is addressing supply chain labour challenges, earning consumer and investor confidence.

• IFRS S2 focusses on climate. It guides businesses to disclose:

• • Procedures – What governance systems are in place to track climate risks and opportunities?

• • Strategy – How is your business planning for them?

• • Process – What systems identify and respond to risks like flooding, fires, or supply chain disruptions?

• • Progress – What targets have you set (e.g., emissions, energy use), and how are you advancing toward them?

For New Brunswick SMEs, aligning with IFRS S1 and S2 isn't just about compliance. It can improve relationships with banks and lenders, strengthen credibility in export markets, and help anticipate changes in regulation. More importantly, it positions businesses as proactive leaders in a low-carbon economy, turning sustainability reporting into a strategic advantage.

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is the most widely used sustainability reporting standard in the world. For businesses, it’s more than a compliance tool—it’s a way to understand, communicate, and improve their impact on people and the planet. By adopting GRI, companies can identify climate-related risks, highlight opportunities, and demonstrate to stakeholders that they are committed to long-term resilience.

The GRI framework is structured around three interconnected series of standards:

• Universal Standards – Core disclosures that apply to all organizations.

• Sector Standards – Industry-specific guidelines tailored to unique challenges and opportunities.

• Topic Standards – Detailed reporting on issues like emissions, water use, energy, labour practices, and more.

For New Brunswick businesses, GRI offers a globally recognized way to show leadership. Companies like McCain already use it to communicate transparently with investors, partners, and the public about how they assess and manage climate impacts. For SMEs, aligning with GRI can unlock credibility, strengthen supply chain relationships, and make it easier to enter markets where sustainability reporting is fast becoming a requirement.

Image source: GRI

In short, GRI helps turn sustainability data into a business asset—one that builds trust, improves decision-making, and positions companies to thrive in a low-carbon economy.

The Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS)

For New Brunswick companies that supply products to the European Union—or that are part of supply chains connected to EU buyers—the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) are increasingly relevant. These regulations are part of the EU's Green New Deal and its goal of being the first net-zero continent.

The CSRD was established in 2023, with the first reports from affected companies due in 2025. It requires businesses to disclose information about their environmental and social impacts. To comply, companies must follow the ESRS, a set of 12 standards covering environmental, social, and governance (ESG) topics. These standards were developed in alignment with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) to ensure global consistency.

The CSRD is being phased in between 2024 and 2029, eventually applying to nearly 50,000 companies in the EU, as well as many non-EU firms with significant operations in Europe. Importantly, EU companies required to report under CSRD will also need data from their suppliers—creating indirect reporting expectations for small and mid-sized enterprises outside the EU.

This matters for New Brunswick because the province's major exports—seafood, forestry products, minerals, and manufactured goods—are sold into European markets, either directly or through global supply chains. Suppliers that can provide reliable sustainability data will be better positioned to maintain and expand relationships with EU buyers.

For SMEs, aligning with CSRD/ESRS principles now is less about immediate compliance and more about future readiness: maintaining access to export markets, reducing supply chain friction, and building credibility with global partners and investors.

Potential Impact of CSRD/ESRS on New Brunswick Export Sectors

How to Choose the Right Framework: A Simple Guide for NB SMEs

• Do you want to know more about your climate impact? Are you looking for a place to start? → Start with the GRI.

• Do you supply product to an EU company? → Learn CSRD and ESRS basics. Though it is still being phased in, and may not impact you, sustainability reporting is becoming a continental norm, so awareness is key.

• Do your banks/investors ask for climate data? → Use IFRS S1 and S2.

Conclusion

Small and mid-sized enterprises are the backbone of New Brunswick's economy—and they are uniquely positioned to lead in the global shift toward sustainability. By adopting recognized reporting frameworks, SMEs can do more than meet compliance requirements: they can strengthen competitiveness, attract financing, and build partnerships that open doors to new markets.

The path forward doesn't have to be overwhelming. Starting small, staying consistent, and aligning reporting with both business goals and international expectations can create steady progress. Each step taken today builds resilience and credibility for tomorrow.

At the Pond-Deshpande Centre, we believe New Brunswick's SMEs can turn sustainability into an advantage. Our Green Horizons initiative is designed to support that journey—helping businesses understand frameworks, measure impact, and unlock opportunity. To learn more, visit us here, or reach out directly to us here.