A BMO Climate Institute survey of small and medium-sized enterprises (SMEs) in North America has shown that while respondents are very or moderately concerned about the implications of climate change, few have measures in place to combat it because of other priorities and the high costs of climate mitigation.
In the maiden BMO Climate Institute survey of SME opinions on climate change, it was discovered that nearly a third of respondents said that severe weather patterns are already posing problems, and 69% of respondents predicted that the physical effects of climate change would disrupt operations within the next five years.
Even still, just 28% of businesses have a strategy in place to deal with it. Many SMEs claim they are either confused about where to start or are preoccupied with more pressing issues in order to justify the expense of climate change mitigation.
More than 99 per cent of American firms are small and medium-sized enterprises. They employ over 70% of the total workforce and have contributed to more than half of the net new jobs in the private sector over the past several decades, yet they believe that the government and outside partners are doing too little to assist them in addressing climate change.
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According to the Head of BMO Climate Institute, Susan McGeachie, the Institute commissioned the survey to learn more about how small and medium-sized businesses that are key players in a successful energy transition, perceive climate change and the opportunities and difficulties it presents.
In her words, “While we weren’t surprised that most SMEs don’t yet have a climate change plan in place, for myriad reasons, we were surprised to learn that so many of them are already feeling its impact. There are right-sized strategies for SMEs that they can undertake now to protect their businesses from climate change-related risks due to factors like changing weather, and measures to accelerate a low carbon transition.”
Also speaking, Niamh Kristufek, Head, of U.S. Business Banking, BMO, said the survey found that 35% of businesses that have a plan are following it to satisfy customers, while companies without a plan are seeking guidance and assistance in reducing the effects of climate change on their businesses.
According to her, BMO’s climate ambition is to be its clients’ lead partner in the transition to a net-zero world. In response, she said the company was focused on developing tools and solutions specifically for SMEs to drive understanding of climate risks in their space, development of actionable climate plans and financial resources to support “this critical work.”
Story was adapted from PR Newswire.
