KPMG Canada surveyed 350 business owners and senior executives to assess the impact of climate change on Canadian businesses. The results reveal that businesses are increasingly concerned about the consequences of extreme weather events, and are taking steps to adapt and mitigate risks.
Businesses affected
- 57% of companies have seen their activities directly affected by extreme weather events over the past year.
- This includes disruptions such as loss of electricity, water supply, communication and other utilities.
- The sectors most affected are agrifood, retail, construction and financial services.
Loss of productivity
- 50% of companies reported that employee productivity was directly affected by extreme weather events.
- This is due to factors such as employee absences, plant closures and reduced productivity.
Impact on revenues and profitability
- 56% of companies have suffered a drop in profitability due to extreme weather events over the past year.
- This is due to increased costs (insurance, repairs, supply chain) and loss of revenue.
- Small and medium-sized enterprises (SMEs) are particularly vulnerable to the financial impacts of climate change.
Climate change is having a major impact on Canadian businesses, disrupting operations, reducing productivity and affecting profitability.
In summary, the KPMG Canada study highlights the significant impact of climate change on Canadian businesses, leading to losses in productivity and profitability, particularly affecting small and medium-sized enterprises (SMEs). A business continuity plan (BCP) is essential to mitigate these impacts. It makes it possible to reduce operational interruptions, protect productivity by establishing workaround protocols for building shutdowns, and so on. Maintaining essential services enables deliverables to continue to be produced and revenues to continue to be generated. A BCP also strengthens long-term resilience by identifying vulnerabilities and implementing appropriate measures. Finally, it ensures stakeholder confidence by guaranteeing that the company can maintain its commitments despite climatic crises. In short, a robust BCP is essential if we are to navigate effectively in an environment that is increasingly prone to climatic hazards.
Sources
[1] KPMG Canada (2024, July 16). Extreme weather and profits: companies are afraid. https://www.newswire.ca/fr/news-releases/les-entreprises-canadiennes-craignent-que-les-changements-climatiques-ne-causent-des-conditions-meteorologiques-encore-plus-extremes-et-continuent-de-reduire-leurs-profits-894700182.html