Quebec Business Transition Barometer - 3rd edition - The profitability of climate action: visionary Quebec businesses lead the way

MONTREAL, Nov. 19, 2024 /CNW/ - Québec Net Positif (QNP) unveils today the results of the third edition of the Quebec Business Transition Barometer, the most comprehensive survey on climate action among Quebec businesses. This latest edition reveals that 52% of Quebec businesses were impacted by climate change or its effects in the past year. While the Transition Index remains relatively stable, the most committed businesses continue to make progress, paving the way toward a low-carbon economy.

To conduct this important study, QNP commissioned the research firm Léger, which surveyed 806 Quebec business leaders between August 13 and August 25, 2024. The sample is representative of Quebec's economy, including diversity of sectors, company sizes and regions.

"As the cost of inaction continues to rise, an increasing number of businesses recognize that implementing climate actions is profitable and position themselves to seize new business opportunities offered by the transition to a low-carbon economy. This third edition of the Business Transition Barometer confirms the crucial role of leaders, boards of directors, and employees as allies in the transition for the most committed companies", said Anne-Josée Laquerre, Executive Director & Co-founder of Québec Net Positif.

Key findings of the 2024 study (vs 2023):

• A stable but evolving Transition Index:
  The 2024 Transition Index stands at 33¹ (vs 32.4). While relatively stable, the study reveals that the most advanced businesses continue to progress, while the proportion of unconcerned businesses decreases.
  
  
• Visionaries are progressing:
  The segmentation reveals that visionaries now represent 16% of Quebec businesses (vs 14%). With an average Transition Index of 60 (vs. 60.9), these businesses implement the highest proportion of climate actions. The study highlights the actions that set them apart and how they are taking further steps towards transition.
  
  
• Committed businesses show significant progress:
  Engaged businesses report a Transition Index of 42 (vs 34.7), indicating a substantial increase in climate action implemented.Their proportion remains stable at 17% of Quebec businesses.
  
  
• Unconcerned businesses in decline:
  The proportion of unconcerned businesses has decreased to 22% (vs 24%). With an average Transition Index of 15.4 (vs 18.4), these businesses still believe that reducing greenhouse gas emissions (GHG) is not urgent and remain disengaged in climate action or the transition to a low-carbon economy.
  
  
• Expertise as a key enabler:
  The presence of internal or external environmental expertise is the most important factor driving climate action. Businesses with such expertise report an average Transition Index of 59.3, compared to 24.8 for those without.
  
  
• GHG emissions measurement:
  While the proportion of businesses measuring their GHG emissions remains stable at 20% (vs 21%), significant progress has been made in measuring indirect emissions (Scope 3). 54% of businesses measuring their emissions now include Scope 3, up from 39% in 2023.
  
  
• Key drivers of climate action:
  Among businesses implementing at least one climate action:
  • 40% identify cost reduction at the main driver
  • 36% cite employee and management climate concerns
  • 20% mention access to new knowledge or data, a rising trend (vs 13%)
    
    
• Pressure to reduce GHGs
  22% of businesses indicate feeling a strong pressure to reduce their GHG emissions. Among businesses feeling pressure:
  • 28% cite government as the primary source, a significant increase (vs 19%).
  • Employees (24%) and customers (22%) are also key influencers.
    
    
• Main roadblocks to implementing GHG reduction actions:
  • Lack of financial resources remains the primary roadblock, affecting 44% of businesses, up from 34%. This challenge impacts all businesses, including those further along a transition pathway.
  • The lack of skilled resources is the second most cited roadblock, mentioned by 18% of businesses, an increase from 12%.

Organizational culture, the most important component for climate action

• An organizational culture influenced by the transition: The transition to a low-carbon economy has influenced the organizational culture of 41% of large companies (250+ employees) and 24% of SMEs (10-249 employees) in the past year.
• Leadership and board engagement: Businesses with an engaged leadership team report an average Transition Index of 42.1, while those with an engaged board of directors reach 48.8 (compared to 33 for all Quebec businesses).
• Employees as allies in the transition: As the Transition Index rises, businesses increasingly integrate climate issues into employee training. In less advanced businesses, employees serve as a "trigger for action", while in more mature companies, they become key allies in aligning with likely transition pathways. 

Adaptation and resilience: businesses facing climate change
In collaboration with Ouranos, a scientific consortium specializing in climatology, the Business Transition Barometer has enhanced its analysis of how businesses adapt to and build resilience against climate change. A dedicated report will be published in January 2025. Here are some preliminary highlights:

• Widespread climate concerns:
  76% of businesses report being concerned about one or more climate event due to their potential impact on their operations (new question 2024).
• Direct climate impacts:
  52% of businesses were affected by one or more climate event or their derivatives in the past 12 months (new question 2024). 
• Growing adaptation planning:
  34% of businesses have an adaptation or continuity plan to address direct threats to their operations from climate change or are in the process of developing one, a rising trend (vs 25%). 

Quotes

"Threats such as floods, forest fires and heatwaves are already impacting the value chains, operating costs, and productivity of many businesses. Coping with these phenomena is a major challenge for organizations across various economic sectors. Our collaboration with Quebec Net Positive aims to highlight the impact of climate change on businesses and the ways in which they are adapting – and could further adapt – to these new realities."  

Caroline Larrivée, Director, Scientific Programming, Ouranos

"Climate change and the energy transition are issues impacting our entire economy. At BMO, we're driven to be our client's key partner in their journey toward a net-zero world. The findings from the 3^rd edition of the Quebec Business Transition Barometer make it clear: Quebec leaders are aware about climate issues and, we share their concern. We're committed to standing by them in the transition, helping them step forward with confidence and seize the opportunities offered in a world undergoing profound change. A special acknowledgment to Quebec Net Positive, which can count on BMO's strong support."

Grégoire Baillargeon, President, BMO Financial Group, Quebec

"Beneva is committed to accelerating a just transition to a greener, more inclusive, and resilient world, which is why it was important for us to support the 2024 Business Transition Barometer. As the insurer of many SMEs, we know that they are not all equally prepared to face the challenges posed by climate change. This study will help us understand their realities and activate the right prevention strategies to better support them in the transition. Through this partnership, we continue to be there for our members and customers, placing both people and the planet at the heart of our actions." 

Stéphane Morency, Executive Vice-President and Leader,
Strategy, Customer Experience and Marketing, Beneva

Quebec Net Positive thanks the partners of the 2024 Business Transition Barometer: Beneva, BMO, and Investissement Québec; the collaborators: Business Development Bank of Canada (BDC) and Cascades; as well as Finance Montréal, the Fonds de solidarité FTQ and the experts from Ouranos, Casacom and Futur Simple for their support. This edition of the Barometer is also made possible thanks to the financial support of the Québec Government's Green Economy Plan.

For more information

• Infographic, recommendations (Eng) & report (Fr): download here 
• Webinar (Fr): Nov. 19, noon: register here    
• For more about our Sector and Regional Barometers: [email protected]

About Québec Net Positif (QNP)

Québec Net Positif (QNP) is an independent, not-for-profit think tank, dedicated to accelerating the transition to a low-carbon, positive economy. Its mission is to raise awareness, mobilize and equip businesses – particularly SMEs and those who support them – to go beyond risk mitigation, seize business opportunities and activate their full potential to create positive impacts on society and the environment. 

www.quebecnetpositif.ca

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¹ This means that Quebec businesses are implementing approximatively one-third of the known and desirable climate actions to reduce GHGs across their operations, value chains, organizational culture, and to adapt to climate change. If a business were to fully implement in these four key components to be perfectly aligned with a low-carbon transition pathway, its score would be 100.

SOURCE Québec Net Positif

Media contact: Louis Mercier, Casacom, [email protected], [phone]