Accounting for climate change, environment and social sustainability is the new normal way of doing business in Canada.

A few weeks ago we learned that Canada has a new Government. Last week we were introduced to Prime Minister Trudeau's Cabinet. Now we must watch to see what will unfold for Canadian businesses. That said, the reality is that when it comes to doing business in this country – regardless of which government is in power – organizations need to shift their approach and focus more attention on the impact of climate change, environment and social sustainability issues on their operations. In resource-based sectors, in particular, these are not just “nice to consider” issues anymore – they are critical to success, period.

Environmental and social sustainability are no longer strategic differentiators for business, they are becoming business as usual and critical to survival and success. Investors are increasingly educating themselves about non-financial-risks, from social license to operate to governance, operations, conduct and reputation. In fact, according to a new EY survey, Tomorrow’s Investment Rules, 59% of investors surveyed say corporate responsibility is essential or important to their investment decisions. That’s up a whole 25% from last year, which is clear evidence of the growing importance of addressing these risks.

 Meanwhile, regulators are taking action more frequently, even going so far as to shut down operations when there is a risk of harm to the environment or communities. For businesses, this means that not addressing these issues – and accounting for them in the right way – can have a serious impact on operations.

But it’s not all bad. With challenge comes opportunity. A proactive approach to these issues can, in fact, lead to better positioning for a company. Whether it’s day-to-day operations, growth and expansion, or managing a transaction, leadership on these issues will pave the road for business resiliency in a “new normal” environment.

 Alberta, for example, is often a target when it comes to pointing fingers at the biggest polluters in the country. But that status also provides an opportunity for companies to innovate and work to reduce emissions, and hopefully streamline and make their operations more efficient overall. While an improved reputation would be a benefit, the real advantage is the long term sustainability of the business overall. With widespread support for taking action on Climate Change in Alberta, Canada and globally, the time for companies to implement a broad range of programs and policies to transition to a lower-carbon future is now.

 In this “new normal” operating environment, business leaders need to be proactive on their assessment and management of environmental and social risks beyond regulatory compliance. They need to be innovative and engage government and external stakeholders to collaborate on developing solutions in an evolving regulatory environment. And they need to make sure to budget for the increasing costs of doing business, including resource allocation to meet and manage regulatory compliance, and increased fines and penalties for non-compliance.

As we head into the Climate Change Summit in Paris in December, this “reality” will become even more important. The world will be watching for news about Canada’s Climate Action Plan, submitted earlier this year, and the resulting Paris agreement that will come into effect in 2020. Getting 190 countries to agree on an environmental strategy won’t be easy, but rest assured, here in Canada, cities, local governments and businesses will all be asked to do more to contribute to Canada’s overall strategy.

 With a new government and a new plan expected out of Paris, change that is already underway could soon be fast-tracked. For businesses, being proactive now means a more sustainable future – for the environment, and for business.