How Climate Change in Canada Will Impact Your Business

The recent closure of the 2021 United Nations Climate Change Conference (COP26) has us all considering our environmental footprint.

Speaking to global leaders at the conference, Prime Minister Justin Trudeau signalled his government’s intentions to increase the price on carbon, cap Canadian oil and gas emissions, reduce methane emissions and reach net-zero emissions by 2035.

With this roadmap, conscious businesses can begin capitalizing on the green wave.

The reasons to get on board are obvious. Climate change has been linked to extreme weather events, impacting people, and increasing the cost of doing business.

Consider the tragic disaster unfolding in B.C., where torrential rainfall has led to flooding and mudslides. Lives have been upended, and the brief closure of all major roadways in the province will further delay shipments from the Port of Vancouver, Canada’s largest port, which already faced a bottleneck due to the COVID-19 pandemic.

Supply chain delays have dramatically impacted Canadian manufacturers and shipment delays will hurt consumers and businesses, who are unable to restock their shelves and get products to customers.

As well, businesses that fall behind the green wave will face higher costs in the years to come.

The good news is that, ahead of these price spikes, federal and provincial governments offer a variety of tax incentives for those ready to invest in green technology.

According to the federal government, buildings account for 18 per cent of Canada’s greenhouse gas emissions, and about 50 per cent of a building’s energy consumption is used for heating and cooling as those inside seek to maintain a comfortable temperature.

Businesses that invest in properly fitted doors and windows, as well as window covers, can regulate their building temperature, and save energy — and the government will help foot the bill.

Canadian businesses are accountable to all stakeholders for proving their intentions to address the environmental, social and governance  (ESG) risks and opportunities ahead..

Consumers in the 21st century are intelligent. They make choices to reduce their environmental footprint and expect the businesses they support do the same. Employees want to work for businesses that are committed to climate change solutions. Investors are looking for businesses that have a long term focus. Regulators are going to begin demanding data supporting climate change action.  Ranking and rating agencies are now using ESG ( environmental, social and governance) metrics to rate companies performance on sustainability.

Use a business analysis to examine ways to reduce your environmental impact and be transparent with your stakeholders. Consider starting with a Materiality Assessment to bring various stakeholder groups into the discussion of what ESG issues are important to them. Let them know how you are already aware of your responsibility, and what your short, mid and long term targets are.

The point is: a sustainable business model makes you part of the solution, and will benefit the broader community and your bottom line. So, what are you waiting for?

If topics like this one interest you, visit Innovators Alliance. Our peer-based membership enables you to network with other business leaders like you to consider different approaches to serious issues such as climate change that could have a direct impact on your business.