Quebec Business Transition Barometer
The profitability of climate action: visionary Quebec businesses lead the way
MONTREAL, November 19, 2024 – QNP presents the results of the third edition of the Quebec Business Transition Barometer, the most comprehensive survey on the climate action of businesses in Quebec. This new edition reveals that 52% of Quebec businesses have been affected by climate phenomena (or their derivatives) in the past year. Although the Transition Index remains relatively stable, the most committed companies continue to make progress, paving the way for 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 inaction leads to rising costs, more and more companies recognize that implementing climate actions is profitable and are positioning themselves to seize the new business opportunities presented by the transition to a low-carbon economy. This third edition of the Quebec Business Transition Barometer confirms the crucial role of executives, boards of directors, and employees as allies in the transition of the most committed companies,” emphasizes Anne-Josée Laquerre, CEO and co-initiator of QNP.
Key findings of the 2024 study (vs 2023):
- A stable but evolving Transition Index:
The 2024 Transition Index reaches 33 (vs. 32.4 in 2023). Although relatively stable, the study reveals that the most advanced companies continue to progress, while the proportion of Unconcerned companies is decreasing. - 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 companies on the decline:
The proportion of Unconcerned companies drops to 22% (vs. 24%). With an average Transition Index of 15.4 (vs. 18.4), these companies still see no urgency in reducing greenhouse gas (GHG) emissions, and are not concerned about climate change and 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. - Déclencheurs d’actions climatiques :
Parmi les entreprises ayant mis en œuvre au moins une action climatique :- 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%)
- Pression pour réduire les GES :
22% des entreprises déclarent subir une forte pression pour réduire leurs émissions de GES. Parmi les entreprises qui déclarent subir de la pression :- 28% cite government as the primary source, a significant increase (vs 19%).
- Employees (24%) and customers (22%) are also key influencers.
- Principaux freins à la mise en œuvre d’actions de réduction des GES :
- 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, from triggers for action to allies in the transition: the higher the Transition Index, the more companies are integrating climate issues into the training offered to their employees. From “action triggers” in the least advanced companies, employees become true allies for those aiming for a plausible transition pathway.
Adaptation and resilience: businesses facing climate change
In collaboration with Ouranos, a scientific consortium specializing in climatology, the Quebec 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).
- 76% of businesses report being concerned about one or more climate event due to their potential impact on their operations (new question 2024).
- Impacts climatiques directs :
- 52% of businesses were affected by one or more climate event or their derivatives in the past 12 months (new question 2024).
- 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, wildfires, and heat waves are already impacting the value chains, operating costs, and productivity of many businesses. Facing these phenomena is a significant challenge for organizations in various economic sectors. Our collaboration with QNP aims to highlight the impact of climate change on businesses and the ways in which they are adapting and could adapt to these new realities.” Caroline Larrivée, Director of Scientific Programming, Ouranos
“Climate change and the energy transition are issues that affect our entire economy. At Montreal Bank, our ambition is to be the main partner for our clients in the transition to a carbon-neutral world. The results of the 3rd edition of the Quebec Business Transition Barometer clearly show that Quebec leaders share this concern regarding climate issues. We will be there to support them in the transition, to face the future with confidence, and to seize the opportunities offered in a world undergoing profound changes. I want to commend the work of QNP, which can count on the support of BMO.”
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
QNP thanks all partners of the 2024 Quebec Business Transition Barometer: Beneva, BMO, and Investissement Québec; the collaborators: Canada Development Bank (BDC) and Cascades; as well as Finance Montréal, the FTQ Solidarity Fund, and the experts from Ouranos, Casacom, and Futur Simple for their support. This edition of the Barometer is also made possible with the financial support of the Government of Quebec’s Plan for a Green Economy.
For more information :
- To download the 2024 Quebec Business Transition Barometer: click here
- To watch the webinar revealing results on replay: click here
- To find out more about our Sector and Regional Barometers: contact us
About Québec Net Positif
QNP is an independent nonprofit think tank whose purpose is to accelerate the transition to a low-carbon and positive economy. Its mission is to raise awareness, mobilize, and equip companies – particularly SMEs and those who support them – to help them go beyond risk mitigation, seize business opportunities, and activate their full potential for creating positive impacts on society and the environment.