Thriving in Uncertain Times: The Rising Cost of Doing Business in 2025
Since 2020 the world has never quite been the same. Now, in 2025, businesses are navigating one of the most volatile economic landscapes in recent history. Rising U.S.-Canada tariffs, Canada’s industrial carbon pricing framework, and increasing energy costs are adding pressure to manufacturers, food processors, and other industrial sectors.
Businesses that fail to optimize operations and improve efficiency will see shrinking profit margins and higher operational costs. However, those that embrace sustainability as a financial strategy can reduce expenses, improve resilience, and gain a competitive edge.
Let’s explore how sustainability helps businesses to lower energy costs, optimize supply chains, and minimize exposure to carbon taxes—while increasing profitability amid peculiar economic conditions.
The Double Whammy: US Tariffs and Canada’s Industrial Carbon Pricing
Two major cost pressures are reshaping business operations in 2025—and some of these seem to be changing daily! To date, we’re seeing:
U.S. Tariffs on Canadian Goods
- 25% tariffs on non-USMCA-compliant Canadian products
- 10% tariffs on energy and potash imports
- 20% tariffs on Chinese goods, impacting companies relying on overseas supply chains
- Government of Canada response to U.S. tariffs
Tariff Impact on Businesses
- Manufacturers relying on imported raw materials are experiencing higher production costs
- Supply chain delays are increasing uncertainty for North American businesses
- Retailers and food processors are seeing price hikes passed down from suppliers
Canada’s Industrial Carbon Pricing
- The consumer carbon tax has been eliminated, but the industrial carbon pricing system remains
- High-energy industries face increasing costs per ton of carbon emissions
- Canada’s carbon pricing policy
Carbon Tax Impact on Businesses
- Manufacturers are paying higher costs for fossil fuel-based operations
- Food processors and distribution centers see increased expenses related to transportation and logistics
- Companies that fail to reduce emissions will face rising tax burdens as carbon pricing rates increase annually
- This is doubly problematic when adding on the tariffs from current agreements like the USMCA-related goods
So, what to do?
Solution: Sustainability as a Financial Strategy
Companies that integrate sustainability into their operations can significantly reduce tariff and tax exposure.
- Optimizing energy and water use reduces carbon tax liabilities (OECD carbon pricing analysis)
- Process efficiency improvements minimize waste and improve profitability
- Sustainable supply chain adjustments help avoid tariffs and lower operational costs
Immediate Steps Companies Can Take to Reduce Costs Through Sustainability
Businesses can take immediate actions to cut costs and improve profitability:
- Conduct an integrated (water, energy, and waste) facility-wide assessment: Identify where waste and inefficiencies occur through onsite data collection (or through an EMIS, like Stewwi) , identify opportunities to reduce waste, then implement the solutions and track the results through your EMIS
- Reconfigure Supply Chains to Reduce Tariff Impact: Diversify suppliers to avoid dependency on tariffed goods, and implement regional sourcing strategies to improve cost stability
- Invest in Process Efficiency & Waste Reduction: Optimize manufacturing and food production to cut waste. Implement circular economy strategies
- Find Alternatives to Key Processes to Lower Carbon Costs Further: Shift to electric, blue roofs, or renewable-powered alternatives. Find ways to invest in on-site renewable energy generation.
Businesses that act now will minimize financial risk and gain a competitive edge.
Energy Efficiency Lowers Operating Costs with an EMIS
One of the most effective ways to lower operational expenses is through real-time energy monitoring, which allows you to pointoint real-time inefficiencies and take immediate action to remedy them. Businesses often waste energy without realizing it—from inefficient lighting and HVAC systems to poorly optimized equipment, like air compressors and air handling units. Industrial carbon pricing is rising, making energy waste even more expensive for businesses that don’t take action.
How an EMIS Reduces Energy Costs
Real-Time Monitoring: The Stewwi Energy & Water Management Information System (EMIS), developed by Enviro-Stewards, helps businesses track real-time energy and water use, identifying inefficiencies before they become costly.
Automated Alerts & Reporting: Businesses receive automated alerts when energy or water use exceeds set thresholds, allowing for immediate action to prevent waste.
Data-Driven Decision Making: The system collects and analyzes historical energy and water consumption data, helping businesses make strategic investments in efficiency improvements.
Proven Cost Savings: Companies that adopt Stewwi EMIS have reported:
- X% reductions in energy use, resulting in lower utility costs.
- Reduced carbon tax exposure by cutting emissions from inefficient processes.
- Faster return on investment (ROI) on energy-efficient upgrades.
Why This Matters?
- Without Stewwi EMIS, businesses are blind to inefficiencies until costs spiral out of control
- With Stewwi, companies gain full visibility into their energy and water usage, allowing for immediate cost-saving actions
Water Conservation Reduces Utility & Regulatory Costs
Water conservation is often overlooked as a cost-saving strategy, but municipal water fees, wastewater surcharges, and regulatory compliance costs continue to increase for businesses.
How Dextran Reduced Costs Through Water Efficiency
Dextran, a manufacturing company, faced rising municipal wastewater surcharge fees. Their wastewater exceeded city discharge limits, leading to higher operational costs and compliance concerns.
Step 1: Water Audit & Flow Monitoring
Dextran partnered with Enviro-Stewards to analyze water consumption patterns and wastewater discharge points.
Step 2: Process Optimization
By modifying their cleaning procedures and replacing inefficient water systems, Dextran:
- Cut municipal water consumption by 30%, lowering water costs by over $52,000/year
- Average payback period of 0.3 years
Key Takeaway on Water Conservation
- Many companies are unknowingly paying more than necessary for water and wastewater management
- By optimizing water usage, companies reduce costs while staying compliant with environmental regulations
Waste Reduction Improves Profit Margins
Food loss and waste is one of the most expensive inefficiencies in the food and beverage manufacturing and processing industries. Every ton of wasted food represents an inefficient use of resources, resulting in lost revenue, increased disposal costs, and carbon emissions through the embedded GHGs in the food waste.
How Campbell Canada Cut Food Waste and Boosted Efficiency
Step 1: Identifying Food Waste Sources
Campbell Canada partnered with Enviro-Stewards to conduct a food waste assessment. The study revealed:
- Significant waste occurring during processing and packaging
- Excess product loss due to inefficient equipment settings
Step 2: Implementing Process Improvements
Through simple adjustments, Campbell Canada:
- Realized financial savings of over $700,000 annually
- Saved 938 tonnes/year in (embedded) GHGs
- Diverted edible food to secondary markets, creating new revenue streams
- Optimized ingredient usage, improving operational efficiency
- Achieved a payback period of less than six months
Key Takeaway on Food Loss and Waste Reduction
- Most companies accept food or material waste as part of operations—but this mindset results in lost profits
- Targeted waste reduction strategies don’t simply reduce disposal costs but they maximize resource utilization, yielding significant financial savings
Future-Proofing Your Business with Sustainability Starts Today!
Companies that fail to optimize energy, water, and resource consumption will struggle with rising costs, tariffs, and taxes. Those that invest in sustainability today will reduce costs, improve efficiency, and gain a competitive advantage.
Take Action Today: Contact Enviro-Stewards for a consultation. Book a free Sustainability Assessment.