Only 27% of Canadian businesses have a plan in place
The business impact of climate change is driving more business leaders to think about mitigation plans, according to the second annual BMO Climate Institute Business Leaders Survey.
Based on a survey of 700 business leaders in Canada and the US, the 2023 results reveal why companies are increasingly taking action, how they are thinking about climate risk, and the challenges and opportunities they face in their transition to net-zero.
Even though concerns including inflation and interest rates, labour shortages, and supply chain bottlenecks continue to weigh heavily, business leaders are increasingly paying attention to climate change:
- Nearly half (48 percent) of business leaders surveyed believe climate change is already affecting their businesses and even more (81 percent) anticipate it will affect their businesses in the next five years.
- 32 percent of businesses have a plan in place to address it – up six percent from last year – and 35 percent are in the process of developing one.
- US business leaders (38 percent) are more likely to be moving forward with plans (up 10 percent), compared to Canada where only 27 percent have a plan in place (up three percent).
Though business leaders are slightly less confident in their ability to make a difference to greenhouse gas emissions compared to 2022 results, the survey identified actions believed to have the most impact:
- 76 percent of Canadian and US businesses chose the use of renewable, compostable and recyclable resources.
- 61 percent chose tracking and managing supply chain emissions and cutting back on travel.
- Over half (53 percent) chose the purchase of carbon credits, up 6 per cent from 2022, and an eight percent increase in Canada alone.
Many business leaders think governments and industries could provide more realistic policies to help. Industry policies continue to be perceived as more lenient by all businesses, especially in Canada where only 44 percent of businesses find them ambitious.
In Canada:
- 45 percent are more likely to find government policies achievable – similar to last year's findings – and only three percent of leaders thought their government's policies are just right.
- 10 percent said they feel strongly supported to establish and pursue a realistic climate plan.
"The results of the survey reveal that 61 percent of leaders with a plan are doing it because they think it's good for their business, while those without a plan are looking for advice and support in mitigating the impacts of climate change on their businesses," said Michael Torrance, chief sustainability officer at BMO.
"Business leaders are telling us they value products, services and incentives that will help them reduce their footprint, as well as insights to help them adapt and thrive in the evolving landscape. As our clients' lead partner in the transition to a net-zero world, BMO can meet these needs, helping them to make progress by contributing to their understanding of climate risks, advising them on their climate plans, and discussing their financial options."
The second annual BMO Climate Institute Business Leaders survey was conducted by Pollara with more than 700 business leaders in Canada and the US between August 3 and August 24, 2023.
