(Toronto) Small and medium-sized businesses should start thinking about integrating climate plans into their operations to stay competitive, says the director of BMO’s Climate Institute.
According to Susan McGeachie, large companies are increasingly examining the greenhouse gas emissions profile of their suppliers, which presents both risks and opportunities for smaller players.
“It’s always been on the radar, but over the last two years it’s really become apparent that the majority of their shows are in their value chains. »
His comments come as the institute published on Wednesday a survey of more than 600 SME managers in Canada and the United States. According to the results, 69% of respondents expect climate change to disrupt their business in the next five years, while only 24% of Canadian businesses have a plan to address it.
The survey, the first iteration of what is expected to become an annual exercise, aimed to establish a baseline to track progress and get companies thinking about how they plan to respond to the challenges of climate change ahead, said explained Mme McGeachie.
According to her, large companies are generally not yet separating from their suppliers because of their level of climate inaction, but the trend is changing towards higher expectations.
For now, a lot of the effort is just getting better data, so companies understand their emissions profile. Setting up a new measurement system can be costly, but automated elements are in the pipeline, Mr.me McGeachie.
Some companies are also willing to help suppliers reduce emissions by co-investing in new technologies, she noted.
“Big companies are actually strategically looking for solutions that they can invest in, and ways to collaborate and work with their partners. »
Some 21% of survey respondents said investor expectations influenced their decision to adopt a climate change policy, but most Canadian companies ranked labor shortages and challenges supply chain as more important concerns.
Only 9% of respondents in Canada said they felt supported by the government in their efforts to develop a climate plan.
According to the Bank of Montreal, SMEs represent about 98% of all businesses in Canada and employ about 70% of the workforce.