Canadian Businesses Prepare for Climate Emergencies
As wildfire seasons intensify across North America, a recent KPMG survey reveals that Canadian business leaders are increasingly concerned about the risks posed by urban climate disasters. The survey of 351 business executives found that over 90% expect extreme weather to impact their operations this year, with many already experiencing disruptions.
Roopa Davé, national climate risk leader at KPMG in Canada, noted a significant shift in how business leaders view climate risks. “Two years ago, extreme weather was considered a possible factor in risk management. Now it’s a central consideration,” she explained. The rising frequency and severity of weather events have made all regions vulnerable, from remote forests to urban centers.
Key Findings from the KPMG Survey
- 91% of business leaders have increased concern about extreme weather following recent wildfires.
- 61% described themselves as “extremely concerned,” with 43% taking precautions.
- 93% expect extreme weather to affect their companies this year.
- Over half reported growing concern compared to last year.
The survey highlighted significant impacts from last year’s weather events:
- 68% reported reduced profits, with 30% seeing a 6-10% decline.
- 65% experienced operational disruptions.
- 60% noted impacts on employee productivity.
- 52% faced supply chain interruptions.
- 47% saw rising costs.
- 43% reported physical damage to facilities.
In response, companies are taking proactive measures:
- 53% are investing in infrastructure modifications to withstand extreme weather.
- Nearly 80% are investing in data, analytics, and technology to manage climate risks.
- Two-thirds have multi-year climate adaptation plans.
- 62% have completed climate risk assessments.
- 67% developed specific emergency plans following last year’s weather events.
Leon Gaber, national lead for KPMG’s Critical Infrastructure Resilience and Emergency Management practice, emphasized the importance of ongoing updates to emergency plans and the increasing use of technologies like AI, sensors, drones, and digital twins to improve responses.
Insurance and Climate-Related Losses
Statistics Canada data shows that insurance payouts for catastrophic weather have increased significantly over the past 40 years. Between 1983 and 2008, payouts averaged $400 million annually; since 2009, the average has risen to nearly $2 billion per year. In 2022 and 2023, payouts reached $3.4 billion and $3.1 billion, respectively. Four major climate events in 2024 alone resulted in over $7.1 billion in insurance payouts.
The Intact Centre on Climate Adaptation estimates that for every dollar in insured losses, governments, businesses, and individuals bear $3 to $4 in uninsurable damage. Currently, 63% of organizations carry some insurance coverage for weather-related impacts, but many are seeking to expand it. Sixty-one per cent are reviewing their insurance policies, while 31% reported cancellations due to climate risks.
The KPMG survey was conducted between April 16 and May 6, 2025, with business owners and executives from 351 Canadian companies ranging in annual revenue from $10 million to over $1 billion.
