Canadian business leaders are increasingly confident that formal climate and resilience planning is improving performance and operational outcomes, according to a new survey from BMO Financial Group. The findings suggest companies are moving climate considerations from planning stages into core business strategy as extreme weather events, cost pressures and artificial intelligence reshape decision-making.
The 2026 BMO Climate Institute Business Leaders Survey found 78 per cent of Canadian business leaders say their organization has or is developing a climate plan, up from 66 per cent in 2025. The survey, conducted in January 2026 among 370 senior Canadian decision-makers, indicates a shift from questions about whether to pursue climate planning toward how it supports competitiveness and long-term performance.
Nine in 10 leaders with formal climate strategies say they are confident those efforts are improving business outcomes. Overall confidence that climate and resilience strategies are improving business performance reached 88 per cent in Canada, up from 85 per cent in 2025.
The survey also points to growing integration of climate considerations into day-to-day operations and financial planning. Thirty-two per cent of companies now have a formal approach to tracking and managing supply-chain emissions, up from 24 per cent in 2023 across North America, with the Canadian figure at 30 per cent, up from 20 per cent in 2023. In addition, 38 per cent of companies are integrating environmental considerations into financial decision-making, compared with 25 per cent in 2023 across North America and 41 per cent in Canada, up from 22 per cent in 2023.
Canadian business leaders are also linking climate planning to operational efficiency and profitability. According to the survey, 27 per cent of North American respondents and 25 per cent of Canadian respondents said their company can operate more profitably by addressing climate change, while 30 per cent in North America and 27 per cent in Canada said they can operate more effectively.
Despite increased momentum, the survey found cost pressures remain the most significant barrier to advancing sustainability and resilience initiatives, cited by 38 per cent of Canadian respondents. Businesses continue to report sensitivity to carbon pricing and the cost of low- and zero-carbon goods and services. Sixty-eight per cent said carbon pricing is affecting their business now or will soon, compared with 69 per cent last year and 68 per cent the year before. Sixty-seven per cent said they are affected by the cost of low- and zero-carbon products and services, down from 72 per cent in 2025.
At the same time, 84 per cent of respondents said they are interested in financial incentives tied to sustainability or resilience outcomes, pointing to continued demand for financing mechanisms that support climate-related investment.
Extreme weather remains a central concern for Canadian businesses, particularly following Canada’s second-worst wildfire season on record in 2025. The survey found leaders prioritizing extreme weather risks are more likely to report exposure to rising energy costs, infrastructure strain and carbon pricing impacts, and are more likely to use artificial intelligence to support resilience planning.
Artificial intelligence is becoming more widely embedded in business operations and climate strategy. The survey found 57 per cent of Canadian organizations are using AI in daily operations and 55 per cent are using it in climate planning, while 64 per cent expect to increase AI investment over the next year.
Across specific applications, respondents said AI could be helpful in several areas of climate-related planning, including:
- Development of climate plan 75%
- Plan to deal with reputational issues around climate issues 71%
- Development of concepts for green products in my industry 70%
- Planning ways to be resilient in the face of extreme weather events 69%
Regional differences also shaped how businesses are approaching climate risk and resilience.
In Western Canada, 67 per cent of business leaders said they are concerned about extreme weather events, with 61 per cent saying such events will affect business soon and 31 per cent saying they are already being affected. Infrastructure is also a concern, with 81 per cent citing deteriorating or outdated infrastructure, including 69 per cent who expect impacts soon and 23 per cent who already report effects.
In Ontario and Quebec, respondents pointed to regulatory complexity, energy costs and supply chain disruption as key pressures. In Ontario, 87 per cent expressed concern about government policies and energy costs, compared with 77 per cent and 75 per cent respectively in Quebec. Supply chain bottlenecks were cited by 77 per cent of Ontario respondents, compared with 56 per cent in Quebec.
In Atlantic Canada, businesses reported flooding, storms and coastal resilience as dominant planning concerns, while Prairie region respondents highlighted energy transition issues, weather volatility and commodity exposure.
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