TORONTO – Small and medium-sized businesses should start thinking about integrating climate plans into their operations to stay competitive, says the director of BMO’s Climate Institute.

According to Susan McGeachie, large companies are increasingly reviewing the greenhouse gas emissions profile of their suppliers, which presents both risks and opportunities for smaller players.

“It’s always been on the radar, but over the last two years it’s become really clear that the majority of their shows are in their value chains.”

His comments come as the institute released a survey of more than 600 SME managers in Canada and the United States on Wednesday. According to the results, 69% of respondents expect climate change to disrupt their business in the next five years, while only 24% of Canadian companies have a plan to address it.

The survey, the first iteration of what is expected to be an annual exercise, aimed to provide a baseline to track progress and get companies thinking about how they plan to respond to climate change challenges, Ms McGeachie said.

In her opinion, large companies are not yet parting with their suppliers because of their climate inaction, but the trend is changing towards higher expectations.

At the moment, much of the effort is just getting better data to help companies understand their emissions profile. Setting up a new measurement system can be costly, but automated elements are in the works, McGeachie said.

Some companies are also willing to help suppliers reduce emissions by investing in new technologies together, she noted.

“Big companies are actually strategically looking for solutions to invest in and ways to collaborate and collaborate with their partners.”

About 21% of survey respondents said investor expectations influenced their decision to adopt climate change policies, but most Canadian companies ranked labor shortages and supply chain challenges as more important concerns.

Only 9% of respondents in Canada said they felt the government supported their efforts to develop a climate plan.

According to the Bank of Montreal, SMEs make up about 98% of all businesses in Canada and employ about 70% of workers.