According to a study by the Conference Board of Canada with Export Development Canada (EDC), the country’s SMEs have some catching up to do if Canada wants to achieve carbon neutrality in 2050.

This report, released Friday, shows that the majority of these companies have taken only tentative steps to reduce their greenhouse gas emissions. Only 18% of Canadian SMEs surveyed measure their greenhouse gas emissions and of those, only 15% have carbon neutrality goals. The measures taken are limited to measures described by the authors as “simple”, namely recycling and reducing waste and energy consumption.

“The vast majority of SMEs surveyed are early in their emissions reduction journey, which could weaken their competitiveness in an increasingly green economy,” says Stuart Bergman, chief economist and vice president at EDC, in a press release.

“Compliance with climate change regulations is not only critical for trading in global markets, but also critical for their own viability, especially as sustainability becomes a business imperative,” he adds.

money and education

Given that 98% of the country’s companies are SMEs and that they produce about 30% of the country’s greenhouse gases, it is illusory to believe that Canada can successfully transition to carbon neutrality without a significant contribution from these companies.

“SMEs represent untapped potential on the path to a carbon-neutral future,” says Michael Burt, vice-president of the Conference Board of Canada. However, their ability to participate in Canada’s carbon reduction efforts is often overshadowed by the emphasis placed on large corporations, depriving SMEs of the resources and support they need to drive the green transition.

According to the survey of 381 SMEs across the country, financial constraints and limited resources are the biggest obstacles they must overcome to make the transition to carbon neutrality. The lack of knowledge about reducing emissions and the regulatory framework also represent hurdles.

Therefore, SMEs believe that financial support and more training are needed to help them implement a greenhouse gas reduction strategy.