Few small and medium-sized enterprises have climate action plans

Survey respondents in the latest research conducted by the BMO Climate Institute say they are concerned about the impacts of climate change, but other priorities and the high cost of climate mitigation means few companies have plans in place to fight it.

More, the survey of 600 small and medium-sized enterprises in Canada and the United States found that 69 per cent of businesses expect the physical impacts of climate change to disrupt operations over the next five years, with one-third reporting that they are already feeling such impacts. In Canada, only 24 per cent of businesses have a plan in place to address the risk. In the United States, this number rises to 28 per cent. Businesses report being unsure of where to begin, or they report being more focused on more immediate challenges.

BMO says small and medium-sized enterprises account for more than 98 per cent of businesses in Canada and over 99 per cent of the businesses in the United States, employing approximately 70 per cent of the total workforce. The firm says it was surprised to learn that so many businesses were already feeling the impact of climate change on operations.

Going forward, they add that 24 per cent of Canadian businesses and 27 per cent of United States businesses expect carbon pricing to be a challenge within three years. Across North America, 21 per cent of respondents said investor expectations influenced their decision to adopt a climate change policy.

“Many of those surveyed said they are too preoccupied with inflation, supply chain and labour issues to implement climate change strategies,” they write, adding that 90 per cent of leaders report being concerned about inflation and rising interest rates. In Canada, labour shortages were ranked as the biggest concern by 80 per cent of survey respondents, followed by supply chain challenges and climate change.

Interestingly, the survey also found that seven in 10 of the survey’s respondents said financial institutions could help them better align their businesses with climate change objectives. Almost half felt that institutions could do more to help them with their climate plans.