The push for Canadian manufacturers to embrace the green economy has survived the recession, even as companies struggle to discover new growth strategies.
Companies face increasing pressure from rising energy costs and new regulations to cut pollution, while many of their traditional markets remain mired in the economic doldrums.
But in a report to be released Wednesday, the Canadian Manufacturers & Exporters association encourages its members to make new "green" investments - not only to comply with rules and cut costs, but also to position themselves strategically in a more demanding, environmentally sensitive marketplace.
In issuing its "call to action," the CME has partnered with the Royal Bank of Canada, which is positioning itself as a leading financier for environmental investment.
"RBC believes this is a great time for clients to invest in energy efficiency and waste reduction," said Andrea Bolger, head of business services for the bank. "The business case is usually pretty straightforward, and the payback can be quite quick."
The urgency of climate change issues has faded from the public agenda in both the United States and Canada, as neither government is ready to adopt national emission regulations. But business executives should still expect to face greater demands for environmental improvements from governments, investors, customers and the public at large, the CME report says.
As if to underscore that point, the Ontario government released a new electricity plan on Tuesday that forecast a doubling of power prices in the province by 2030, driven in part by higher-cost renewable generation. Energy prices in general are expected to climb in the next couple of decades as booming emerging markets soak up an increasing share of the world's production.
At the same time, governments around the world are imposing new pollution rules, and forcing companies to account for the practices of their suppliers.
"What we have to think about in terms of business strategy is how can we turn all these requirements [into]more than just a cost factor, and how can we see it as business opportunity," Jayson Myers, president of the CME, said in an interview.
"We have environmental issues all around the world … and there are major requirements on the part of your customers and major expectations on the part of your customers' customers for better environmental practices," Mr. Myers noted.
"So if you can be a part of that solution, then you are able to carve out a new type of market niche that is going to help you differentiate yourself from a lot of your competitors."
Mr. Myers said the opportunities for manufacturers are both direct, as companies supply equipment and components to the booming renewable energy sector; and indirect, as they cost costs and improve productivity through more efficient processes.
Retailers such as Wal-Mart, for example, have begun to systematically survey their suppliers about their greenhouse gas emissions and other environmentally related issues.
RBC's Ms. Bolger said that among small and medium-sized businesses in particular, there is a broad lack of understanding about sustainability issues such as return on investment and financing options. One of the biggest hurdles is the lack of time that executives have to devote to the issue, she said.
"At every step of the process there is a new type of barrier," she said. "Both executive commitment and leadership are essential if organizations are going to successfully close the gap, make those investments and achieve those efficiencies."