#climate-change

Mexico is facing a severe water crisis, with major cities like Mexico City approaching a potential 'Day Zero' due to prolonged drought, aging infrastructure, and over-extraction. This escalating situation poses significant operational and financial risks to a wide range of Canadian companies, particularly in the water-intensive mining, manufacturing, and agricultural sectors. The crisis not only threatens billions in Canadian investment but also tests the resilience of integrated North American supply chains under the CUSMA agreement, forcing businesses to urgently reassess their water management strategies and long-term viability in the region.

Deforestation in the Brazilian Amazon has plummeted under President Luiz Inácio Lula da Silva, a significant victory for global climate efforts. However, this progress is fragile, threatened by illegal mining, agricultural expansion, and controversial energy projects. This complex situation creates a precarious landscape for Canada, which has billions invested in Brazil's resource and financial sectors. For Canadian companies and policymakers, Brazil's struggle to balance environmental protection with economic development poses significant risks and challenges, testing commitments to both corporate responsibility and international climate goals.