Environmental Policy Statement (Canada)

An Environmental Policy Statement in Canada sets the organisation’s environmental commitments and the practices that implement them, governed primarily by the Canadian Environmental Protection Act (S.C. 1999, c. 33) and provincial environmental law.

In Canada, environmental regulation operates at both the federal and provincial levels. The Canadian Environmental Protection Act, 1999 (CEPA 1999, S.C. 1999, c. 33) is the primary federal environmental statute, governing pollution prevention, toxic substances management, and environmental emergencies. CEPA 1999 establishes the National Pollutant Release Inventory (NPRI), which requires facilities to report releases, disposals, and transfers of listed substances annually.

The Impact Assessment Act (S.C. 2019, c. 28) replaced the former Canadian Environmental Assessment Act, 2012 and requires impact assessments for designated projects that may cause significant environmental effects. The Canadian Net-Zero Emissions Accountability Act (S.C. 2021, c. 22) established Canada's legally binding commitment to achieve net-zero greenhouse gas emissions by 2050 and requires the federal government to set national emissions reduction targets.

The Fisheries Act (R.S.C. 1985, c. F-14) is one of Canada's oldest environmental statutes, prohibiting the deposit of deleterious substances into water frequented by fish. The Greenhouse Gas Pollution Pricing Act (S.C. 2018, c. 12, s. 186) established a federal carbon pricing system with a fuel charge and an output-based pricing system for industrial facilities.

At the provincial level, each province has its own environmental protection legislation. Ontario's Environmental Protection Act (R.S.O. 1990, c. E.19), British Columbia's Environmental Management Act (S.B.C. 2003, c. 53), Alberta's Environmental Protection and Enhancement Act (R.S.A. 2000, c. E-12), and Quebec's Environment Quality Act (CQLR, c. Q-2) are examples of thorough provincial environmental statutes. Environment and Climate Change Canada (ECCC) administers CEPA 1999 and enforces federal environmental requirements through Environmental Protection Compliance Orders (EPCOs) and environmental protection alternative measures (EPAMs). The Impact Assessment Agency of Canada (IAAC) conducts federal impact assessments. The Environmental Violations Administrative Monetary Penalties Act (EVAMPA, S.C. 2009, c. 14) authorizes administrative monetary penalties without court proceedings. The Species at Risk Act (S.C. 2002, c. 29, SARA) requires organizations to avoid harm to listed species and their habitats. The Canada Migratory Birds Convention Act (R.S.C. 1985, c. M-7.01) and the Canada Wildlife Act (R.S.C. 1985, c. W-9) impose additional biodiversity protection obligations. The Output-Based Pricing System (OBPS) Regulations under the Greenhouse Gas Pollution Pricing Act require large industrial emitters to meet facility-specific emission intensity standards or pay the applicable carbon price, administered jointly by ECCC and provincial carbon pricing authorities such as Ontario's MECP, BC's Ministry of Environment, Alberta Environment and Protected Areas, and Quebec's MELCC. Disputes involving federal environmental law are heard by the Federal Court of Canada; provincial environmental tribunal appeals are heard by bodies such as Ontario's Environment and Land Tribunals Ontario (ELTO) and BC's Environmental Appeal Board. The Canadian Environmental Protection Act 1999 (Section 64 through Section 103) governs toxic substances. The Fisheries Act 1985 (Section 36) prohibits deposit of deleterious substances. The Impact Assessment Act 2019 (Section 7) defines designated projects. The Greenhouse Gas Pollution Pricing Act 2018 (Section 17 through Section 42) establishes carbon pricing. The Canadian Net-Zero Emissions Accountability Act 2021 (Section 9) requires national targets. The Species at Risk Act 2002 (Section 32) prohibits harm to listed species. The Environmental Violations Administrative Monetary Penalties Act 2009 (Section 16) authorizes penalties. The Canada Migratory Birds Convention Act 1985 (Section 5) protects migratory birds. Ontario's Environmental Protection Act 1990 (Section 14) prohibits adverse effects. BC's Environmental Management Act 2003 (Section 6) governs discharges. Alberta's Environmental Protection and Enhancement Act 2000 (Section 99) requires environmental assessments. Quebec's Environment Quality Act (Section 22) requires authorization certificates.

A Canadian Environmental Policy Statement is needed by every organization whose operations have an impact on the environment. This includes manufacturing, construction, energy, mining, transportation, and agricultural businesses, as well as service-sector organizations that generate waste, consume energy, and use water.

Organizations subject to CEPA 1999 reporting requirements, including NPRI reporting, must demonstrate environmental management practices. Facilities subject to federal or provincial GHG reporting requirements under the Greenhouse Gas Reporting Program (GHGRP) should have documented environmental policies. Organizations undertaking designated projects under the Impact Assessment Act may be required to demonstrate environmental management commitments.

Organizations seeking ISO 14001 certification are required to establish an environmental policy as a fundamental element of their environmental management system. Many provincial regulatory agencies require documented environmental management plans as conditions of operating permits and approvals.

The federal government's Greening Government Strategy requires federal departments and agencies to adopt environmental policies, and many procurement processes for government contracts require suppliers to demonstrate environmental management practices.

An Environmental Policy Statement should be established when the organization commences operations and should be reviewed at least annually, or following material changes to operations, regulatory requirements, or environmental incidents. Canada's evolving carbon pricing regime and the ongoing implementation of the Canadian Net-Zero Emissions Accountability Act (S.C. 2021, c. 22) make regular policy review essential. Organizations operating in Ontario must also consider Ontario Regulation 339/09 (Emissions Performance Standards) under the Ontario Environmental Protection Act (R.S.O. 1990, c. E.19). British Columbia's CleanBC industrial incentive program and BC Carbon Tax Act (S.B.C. 2008, c. 40) create additional compliance obligations for BC-based organizations. Alberta's Technology Innovation and Emissions Reduction (TIER) Regulation (Alta. Reg. 133/2019) governs large industrial emitters. Quebec's carbon market under the Cap-and-Trade System Regulation (RLRQ, c. Q-2, r. 46.1) is administered jointly with California through the Western Climate Initiative (WCI). Organizations required to register as large final emitters under the Greenhouse Gas Reporting Program (GHGRP) must submit annual reports to Environment and Climate Change Canada (ECCC). The Canadian Standards Association (CSA) publishes voluntary environmental management standards referenced by the ISO 14001 certification framework. The Federal Court of Canada, Ontario's Environment and Land Tribunals Ontario (ELTO), and BC's Environmental Appeal Board adjudicate environmental compliance disputes.

A thorough Canadian Environmental Policy Statement must address several essential elements to demonstrate compliance with the framework of federal and provincial environmental laws.

The legal framework section should identify all applicable federal statutes (CEPA 1999, Impact Assessment Act, Fisheries Act, Greenhouse Gas Pollution Pricing Act, Canadian Net-Zero Emissions Accountability Act) and provincial environmental legislation. The scope should define what operations and facilities are covered.

Environmental objectives and targets should be specific, measurable, and time-bound. They should address greenhouse gas emissions aligned with Canada's 2030 and 2050 targets, energy efficiency, waste reduction, water conservation, and pollution prevention. Targets should reference the federal GHGRP and applicable provincial reporting frameworks.

The waste management section should address the waste hierarchy (source reduction, reuse, recycling, recovery, disposal) and compliance with CEPA 1999 and provincial hazardous waste regulations, including proper classification, storage, manifesting, and disposal through licensed facilities.

Water quality and pollution prevention sections should address Fisheries Act compliance, provincial discharge limits, and Environmental Emergency Regulations requirements for spill prevention and response.

Compliance monitoring should describe the approach to NPRI reporting, GHG reporting, environmental audits, key performance indicators, and incident reporting. Carbon pricing compliance under the federal or applicable provincial system should be addressed.

Responsibilities should be assigned to senior management, the environmental manager, and all employees. The policy should designate a policy owner and require approval by senior leadership. The review schedule, training requirements, and consequences for non-compliance should be clearly stated. Penalties for non-compliance under CEPA 1999 include fines of up to $6 million per day for corporations and up to 3 years imprisonment for individuals on indictable offences. The Environmental Violations Administrative Monetary Penalties Act (EVAMPA) authorizes ECCC to impose administrative penalties without court proceedings. Ontario's MECP can issue Director's Orders and Environmental Protection Orders under the Ontario Environmental Protection Act (R.S.O. 1990, c. E.19). Alberta Environment and Protected Areas can issue Environmental Protection Orders under the Alberta Environmental Protection and Enhancement Act (R.S.A. 2000, c. E-12). BC's Director under the Environmental Management Act (S.B.C. 2003, c. 53) can issue remediation orders. Directors and officers of corporations can be held personally liable for environmental offences under CEPA 1999 s. 280, the Fisheries Act, and provincial environmental statutes. The policy should be approved by the CEO or Board of Directors and reviewed annually, with revisions submitted to ECCC where required under the NPRI or GHGRP. Forms-legal.com provides this Environmental Policy Statement template for Canada-compliant documentation. Under the Canadian Environmental Protection Act 1999 (Section 220 through Section 261), directors and officers face personal liability. The Environmental Violations Administrative Monetary Penalties Act 2009 (Section 8 through Section 16) authorizes penalties without court proceedings. The Greenhouse Gas Pollution Pricing Act 2018 (Section 168 through Section 174) governs the Output-Based Pricing System. The Impact Assessment Act 2019 (Section 60 through Section 87) governs federal review conditions. Ontario Regulation 2009 (Section 3) establishes emissions performance standards. Alberta Regulation 2019 (Section 4) sets TIER facility obligations. BC Carbon Tax Act 2008 (Section 8) sets carbon tax rates. Quebec Regulation 2012 (Section 5) establishes cap-and-trade obligations. The Fisheries Act 1985 (Section 40) sets maximum penalties. The Canada Wildlife Act 1985 (Section 13) prohibits disturbance of wildlife. The Migratory Birds Regulations 1994 (Section 6) restrict activities near nesting areas.