(Toronto, 26 May 2010) Eighty-two percent of Canadian executives believe that a response to climate change is imperative today and plan immediate increases on spending for climate change initiatives, according to the new report Action amid uncertainty: the business response to climate change, based on a survey from Ernst & Young.
“The willingness of corporations to invest in climate change initiatives despite the uncertain regulatory environment is extremely encouraging,” says Melanie Steiner, Americas Market Leader for Ernst & Young’s Climate Change and Sustainability Services practice. “Corporate leaders understand that there are a range of market drivers, such as evolving customer demands and equity analysts’ growing interest in climate change performance, that are motivating action.”
Steiner notes that more than 90% of executives surveyed globally indicate that climate change governance rests with C-suite executives or board members. This reflects the growing strategic importance of climate change for many organizations who understand that climate change is not just a risk area but also an opportunity to reduce costs, increase revenue and gain competitive advantage.
Canadian participants in the survey agree, with 71% of Canadian respondents indicating that their company already has an enterprise-wide climate change program targeting key business drivers, and another 11% planning for implementation in the next 12 months.
Canadian respondents also compare impressively with their global counterparts; while globally, 70% of those surveyed expect their companies’ spending on climate change initiatives to increase over the next two years, Canadians ranked 12% higher in this regard. And the investment will be significant, with nearly half of Canadian respondents planning to spend between 0.5% to more than 5% of their revenue on climate change initiatives. For a US$1 billion company, this represents an anticipated spend of US$5 million to US$50 million annually. Canadian companies are taking a comprehensive approach, expanding their climate change efforts beyond the enterprise, through their entire supply chain. Forty-three percent of respondents say they are working directly with their suppliers to help them reduce their carbon footprint, while another 29% say they have begun such discussions.
Globally, the survey findings are predominantly consistent in all participating countries, with some additional trends emerging across all countries surveyed:
The report is based on a survey of 300 global corporate executives across 16 countries. Ernst & Young commissioned the survey to provide a status update on corporate responses to climate change issues in 2010, the half-way point in the first commitment period of the Kyoto Protocol.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 144,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities to achieve their potential. For more information, please visit ey.com/ca.