A recent KPMG survey of 350 Canadian business leaders found that 56 per cent of companies suffered a hit to their profitability from last year’s extreme weather events, while 49 per cent saw their costs rise significantly due to issues ranging from productivity loss to broken supply chains to increased insurance costs.
More than nine in ten (92 per cent) Canadian business leaders fear that extreme weather events are the new normal and that their organization will be hit by a climate-related event this year.
The extreme weather events of the last couple of years have driven home the cost of climate change to the Canadian economy and the bottom line of individual businesses. Devastating forest fires, floods, hurricanes, and extreme heat have impacted profitability for more than half of Canadian companies. Even those that escaped damage fear they will be hit this year – with over two-thirds being very or extremely concerned.
Roopa Davé, KPMG in Canada’s National Climate Risk Leader.
Faced with the reality of more extreme weather, increased demands from stakeholders to make sustainability a priority, and the recognition that regulations are coming that will require disclosure of their decarbonization plans, most (89 per cent) Canadian businesses say they are more determined than ever to find ways to reduce their impact on the environment.
Other key survey findings include:
- 91 per cent have strengthened their strategic commitment to addressing sustainability, climate risk, or decarbonization.
- 80 per cent say their company “lacks the time and resources” to make reducing their carbon footprint a “top or immediate” priority.
- 75 per cent say their company also lacks the data that they need to effectively measure, implement, and evaluate their carbon footprint.
- 89 per cent believe regulations are needed to drive decarbonization across all industries and create a level playing field globally.
- 29 per cent have set specific targets for carbon emission reduction.
- 33 per cent have integrated sustainability criteria into product design, manufacturing process, and/or supply chain operations.
- 42 per cent have invested in renewables.
KPMG in Canada surveyed business owners or executive level C-suite decision makers at 350 Canadian companies between June 5 and June 15, 2024, using Sago’s premier business research panel.
