BUSINESS TRANSITION BAROMETER
2ᵉ edition
The most important survey providing strategic data on
businesses' climate action in Quebec
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Business Transition Barometer 2023
The Business Transition Barometer launched by Québec Net Positif is the very first study to focus specifically on climate action by businesses, including SMEs.
Thanks to the Barometer, it is possible to access representative and exhaustive data on the level of commitment of Quebec businesses to climate action. The Barometer debunks the myths surrounding the transition to a low-carbon economy, measures the current level of commitment of Quebec businesses to climate action, and tracks the evolution of their climate commitment over time.
Scroll down to find out more.
HIGHLIGHTS 2023
Customers are the main source of pressure prompting companies to reduce their greenhouse gas emissions (33%), a significant increase compared to 18% in 2022.
33 %
18 %
2023
2022
35 %
35 %
35 %
40 %
2023
2022
2023
2022
The two most important triggers for corporate climate action
Concerns and ideas of employees
and managers
The global environmental situation
/ climate crisis
Significant gap between willingness and climate actions implementation
Willingness
2023
2022
2023
2022
2023
2022
Capability
Taking action
82 %
84 %
68 %
58 %
57 %
52 %
Believe it is urgent to reduce GHG emissions
Feel well-equipped to act
Implement at least one climate action within their operations
Main benefits of implementing climate action
39 %
2023
34 %
2022
36 %
2023
42 %
2022
32 %
2023
43 %
2022
Strengthening brand image and reputation
Employees' sense of pride and belonging
Creation and offering products, solutions, and services that meet new market needs and expectations
NEW TRANSITION INDEX
The new Transition Index provides an overview of businesses' commitment to climate action. The average Transition Index for 2023 is 32.4, which means that Quebec businesses are implementing less than a third of desirable climate actions in their operations, value chains, organizational culture and to adapt to climate change.
35 %
25 %
21 %
11 %
7 %
Less than 20
20 - 30
31 - 49
50 - 70
71 and more
32,4
Average index
of transition
Quebec businesses implement less than a third less than a third of desired climate actions.
OUR RECOMMENDATIONS
1. Encourage more and more companies, including SMEs,
to rely on in-house or external environmental expertise
The Transition Index for businesses that say they "rely on internal or external environmental expertise" is 58.2, compared with 25 for businesses that say they "do not rely on internal or external environmental expertise". As a result, businesses with access to expertise implement more than twice as many climate actions as those without.
Relying on environmental expertise is the key factor that explains the implementation of climate actions within Quebec companies of all sizes, in all sectors and in all regions.
In particular, companies with at least 1 full-time employee and/or an external advisory committee are implementing more climate actions, and are more likely to be aligned with a likely transition pathway in the face of the accelerating transition to a low-carbon economy.
2. Promote and strengthen the strategic role of executives and boards of directors
Managers' commitment is directly linked to the implementation of climate actions and all aspects of alignment with a transition pathway.
Knowledge of the company's significant sources of GHG emissions, even without having carried out a complete GHG inventory, is directly linked to the implementation of climate actions.
3. Value the role
of employees and managers at all levels
Along with the climate crisis, it is the ideas and concerns of employees and managers that are the two main triggers for companies to take action.
4. Promote the importance of resilience and adaptation to climate change
In the face of increasing extreme weather events, to be considered "aligned with a likely transition pathway", companies need to be aware of the main risks inherent in climate change and the transition to a low-carbon economy across their value chain, and put in place transition plans to be prepared to deal with them.
5. Establish standards and a clear, predictable legal framework for sustainable, responsible marketing and communications
Customers are the main source of pressure for companies to reduce their GHG emissions. In addition, corporate brand and reputation is the main benefit declared by companies that take action.
At the same time, 80% of Quebec executives are unable to explain greenwashing in their own words.
In this context, there is a real risk that companies will respond to customer pressure and try to generate brand benefits from "green" products and solutions, without basing their public claims on facts or reliable data.
Companies with commitment and integrity want - and need - to remain a highly credible source of information about the performance of their operations, products and services.
It's time for Quebec and Canada to follow in the footsteps of the many international jurisdictions that already provide a framework for environmental declarations.
A clear and predictable legal framework will enable companies to innovate and maintain relationships of trust with citizens, and enable customers to make informed choices in line with their values and interests.
6. Increase
climate literacy across the business ecosystem
60% of Quebec executives are unable to explain carbon neutrality in their own words.
87% can't explain what decarbonization means, and 86% can't explain what direct and indirect greenhouse gas (GHG) emissions are. What's more, 50% of Quebec executives are unable to explain biodiversity in their own words.
To succeed in our desire for the whole economy to transition to a low-carbone economy, it is crucial for all executives to be equipped to take part in a constructive dialogue on the subject. It is our collective responsibility to help increase climate literacy within Quebec's business ecosystem.
LEARN MORE
To find out more, read Les Affaires' coverage of the Barometrer 2023 and watch the webinar presenting the results of the Baromètre 2023, hosted by Anne-Josée Laquerre and featuring panelists Grégoire Baillargeon and Stéphane Drouin.
To view the full Business Transition Barometer 2023 study, download the full report