The Importance of Indigeneity in Sustainability

(June 2025)

Business leaders in Canada and around the world recognize the crucial role Indigeneity plays in corporate sustainability strategies. By partnering with Indigenous communities, integrating Indigenous wisdom on environmental stewardship and respecting treaty rights, companies can not only enhance their sustainability efforts but strengthen overall economic success and shared prosperity.

What is Indigeneity?

Indigeneity refers to the social, cultural, economic practices and identities of Indigenous Peoples, including the Inuit, First Nations and Métis Peoples. In Canada, there are more than 600 First Nations Communities with unique histories, cultures, languages and governance systems.

Indigeneity includes understanding of the importance of stewardship of the land for future generations as part of building respectful relationships and walking alongside to learn and share experiences.

How does Indigeneity fit into sustainability?

Indigeneity plays a crucial role in corporate sustainability strategies, from cultural, social (diversity, equity and inclusion) and environmental perspectives.

For example, the traditional Indigenous practice of seven-generational thinking encourages companies to make decisions with a focus on long-term sustainability. This approach requires decision-makers to consider the effects of their choices on people seven generations into the future, offering a perspective that extends beyond typical business planning horizons.

Incorporating Indigenous perspectives in decision making also ensures the rights and interests of Indigenous peoples are respected, promotes greater social equity and inclusive practices, and creates opportunities.

What are drivers for Indigenous strategies and reporting?

Truth and Reconciliation Commission - Call to action #92

In June 2021, Canada adopted the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and enacted the United Nations Declaration on the Rights of Indigenous Peoples Act, SC 2021, c. 14.

Call to Action #92 from the Truth and Reconciliation Commission of Canada focuses on the corporate sector’s role in reconciliation. It calls upon businesses to adopt the UNDRIP as a framework for reconciliation. Specifically, it urges companies to:

1. Commit to meaningful consultation with Indigenous peoples and obtain their free, prior and informed consent (FPIC) before proceeding with economic development projects.
2. Ensure equitable access to jobs, training and education opportunities for Indigenous peoples, and that Indigenous communities benefit sustainably from economic projects.
3. Provide education for management and staff on the history of Indigenous peoples, including the legacy of residential schools, Indigenous rights, and intercultural competency.

Failure to address Call to Action #92 may expose organizations to a cascade of risks that can ultimately cause loss of shareholder value and create material investment risks, such as those described below:

• Reputational Damage: Negative public perception and damage to a company’s reputation, as consumers increasingly value corporate social responsibility and Indigenous engagement.
• Legal and Regulatory Risks: Failure to engage in meaningful consultation and to obtain FPIC from Indigenous communities may lead to legal challenges and delays in project approvals.
• Operational delays: Projects may be delayed or halted due to protests or legal injunctions from Indigenous groups.
• Economic Consequences: Boycotts, protests and disruptions that could result to financial losses.
• Missed Opportunities: Loss of valuable potential partnerships and opportunities for sustainable development and innovation.
• Internal Challenges: Lack of compliance can lead to internal conflicts and a demotivated workforce, particularly if employees value diversity and inclusion.

Investor Expectations

Investors are increasingly requesting Indigenous disclosures, such as:

• Evidence of the company obtaining FPIC from Indigenous communities.
• How a company respects Indigenous land rights.
• Impact assessments of how a company's operations or project impact Indigenous communities.

Investors are requesting Indigenous disclosures because they understand that the inclusion of Indigenous perspectives will be vital in achieving truly sustainable and responsible business practices.

Benefits and opportunities of incorporating Indigeneity in sustainability strategies

Innovation for Sustainability

Indigenous knowledge systems offer innovative, nature-based solutions to current environmental challenges. By leveraging Traditional Ecological Knowledge, companies can develop more sustainable and resilient business practices. Here are a few examples:

• Maple Leaf Foods adopted Indigenous regenerative agricultural practices. These sustainable farming techniques increase biodiversity and contribute to carbon sequestering.
• New Forests, a sustainable forestry investment management company, integrated Indigenous knowledge into their forest management practices. They work with Indigenous communities in Australia to manage forests in ways that enhance biodiversity, sequester carbon and support traditional land uses.
• Teck Resources Limited, a mining company, partnered with Indigenous communities in Canada to implement nature-based solutions for land reclamation and restoration. They have incorporated traditional ecological knowledge into their reclamation plans to restore ecosystems and support biodiversity.

Risk Mitigation

Understanding and respecting Indigenous rights can help companies avoid delays and legal disputes in major projects. Failure to address Indigenous right can pose material risks and additional costs. As was the case for the Dakota Access Pipeline, which was met with legal action that lasted over four years and resulted in significant additional costs. There are legal, reputational, operational and financial benefits to being proactive in establishing and implementing an Indigenous strategy.

Social Equity and Inclusion

Including Indigenous voices in sustainability strategies promotes social equity and inclusion, ensuring that the needs and rights of Indigenous Peoples are recognized and respected. This can lead to more equitable and just outcomes in sustainability initiatives.

How can companies incorporate Indigeneity in their corporate sustainability strategy?

To incorporate Indigeneity in a company’s overall corporate sustainability strategy, a company can begin by taking the following steps:

1. Provide Indigenous culture competency training to all staff, including board members.
2. Understand Indigenous rights.
3. Engage in meaningful consultation with Indigenous communities.
4. Collaborate with Indigenous communities on sustainable land use and environment stewardship. 
5. Develop an Indigenous inclusion and support policy that encompasses Indigenous procurement, financing/capital investment, leadership and board opportunities.

By taking these steps, companies can create more inclusive and effective sustainability strategies that respect and leverage the unique knowledge and perspectives of Indigenous communities.

Hear from Indigenous CPA and experts:

• Kain Big Canoe, CPA: CPAs and Indigenous Communities in Canada
• Mark Sevestre: Sustainability from the Indigenous Perspective

Additional resources:

• Indigenous history in Canada
• Putting the “I” in ESG, First Nations Financial Management Board (2022)
• Indigenous Involvement and values are key to ESG investing, CPA BC

This article is for general information purposes only and does not constitute legal or professional advice. Please reach out to a qualified advisor for situation specific guidance.