Canadian business leaders see themselves on the frontlines of climate action

As Canada seeks to make headway toward its ambitious climate targets, businesses’ role in driving emissions reductions has never been more critical. To understand how organizations are navigating this transformation, the Climate Action Institute surveyed over 100 public and private sector executives in collaboration with Kantar Canada. This report captures their insights on the challenges, priorities, and strategies shaping climate action within the Canadian economy.

The results show a complex system where government policies, business and consumer demands, and market dynamics intersect. While businesses recognize their role in climate strategy, the path forward is far from linear with regulatory hurdles, resource demands, and the need for collaboration between the various stakeholders across sectors.

Key Findings:

• 
  The key to progress: Subsidies, funding, and leadership
  Over half of executives identified government subsidies (55%), internal funding (53%), and C-suite buy-in (50%) as the most significant factors for driving emissions reduction in their organizations.
• 
  A shared responsibility for change
  While 42% of leaders see governments as primarily responsible for climate action, 40% believe businesses share equal responsibility. Customers ranked third, at just 16%.
• 
  Heavy industry faces regulatory headwinds
  Leaders in oil and gas, electricity, and heavy industries cite regulatory uncertainty as the greatest barrier to implementing effective climate strategies.
• 
  Boardroom advocacy is growing but limited
  Only 36% of organizations have a senior executive dedicated to environmental issues, highlighting a need for stronger leadership in this area.
• 
  There’s a need to align goals with incentives
  A third of respondents believe linking climate targets to executive compensation is a key motivator, while 63% think embedding climate objectives into short- and long-term strategic goals will drive progress.

Nearly 9 out of 10 business leaders are familiar with Canada’s emissions reduction target

Q. Are you familiar with Canada’s emissions reduction target?

Majority of businesses have a GHG emissions strategy in place

Q. Does your organization have a greenhouse gas (GHG) emissions reduction strategy?

Business leaders see themselves at the centre of climate action

Q. What are the primary drivers for adopting a greenhouse gas (GHG) emissions reduction strategy for your organization?

Businesses see their role as equal to governments in meeting our targets

Q. Who do you see as being the most responsible for climate change?

Businesses state industry participation as the driving force in meeting our goals

Q. What is required in order for Canada to reach its Net Zero 2050 target?

Access to capital is the greatest challenge for businesses to meet their goals

Q. What are the greatest challenges that your organization is facing as it implements its greenhouse gas (GHG) emissions reduction strategy?

Embedding climate into KPIs is a key to success

Q. What changes to leadership, governance, and/or compensation practices has your organization taken to implement its emissions reduction strategy?

Most business leaders are taking a long-term view when it comes to setting emissions targets

Q. What is your organization’s greenhouse gas (GHG) emissions reduction target?