Over half of businesses nationwide fear extreme weather conditions are the new normal

According to a report from Canadian tax authorities at KPMG, now more than ever, businesses across the country are concerned about the impact extreme weather is having on the engine of industry nationwide. 

The official assessment — released today (July 17) — serendipitously lines up with yesterday’s (July 16) floods throughout southern Ontario, which saw several arms of provincial infrastructure severely impacted. 

As indicated by data provided by KPMG, 92 per cent of surveyed Canadian businesses are concerned that the remainder of 2024 will yield at least one extreme weather incident that will impact operations. 

Using last year as a reference point, KPMG looked into the weather-related anxieties of 350 businesses nationwide.

Data showed that roughly 56 per cent of organizations are coming to terms with the fact that severe weather may be the new normal for their operations, with 49 per cent seeing general costs rise due to weather-impaired supply chains.

“Devastating forest fires, floods, hurricanes, and extreme heat have impacted profitability for more than half of Canadian companies. Even those that escaped damage fear they will be hit this year – with over two-thirds being very or extremely concerned,” said Roopa Davé, KPMG’s Canadian Climate Risk Leader in an official statement. 

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Additional findings within KPMG’s research also show that due to extreme weather:

• 57 per cent of businesses had operations impacted by the loss of power
• 50 per cent had employee productivity impacted
• 30 per cent of  businesses noted insurance costs rising or suffered flat-out cancellations 

As a result of rapidly growing concerns, 89 per cent of surveyed enterprises have stated they are willing to do whatever it takes to reduce their impact on the environment — per Canada’s decarbonization goals. 

“Companies have strengthened their commitment to addressing sustainability and are willing to make more investments to deliver on their climate-related goals, however many are dealing with a number of hurdles,” said Doron Telem, national head of environmental, social and governance standards with KPMG in an official statement. 

However, according to Telem’s research, only 33 per cent of Canadian businesses have integrated any form of sustainable practice standards into their day-to-day operations.