More Canadian businesses developing climate strategies, using AI to plan: BMO survey

A new BMO Climate Institute survey reveals growing momentum among Canadian businesses to address climate risks. Seventy-eight percent of surveyed leaders—representing 370 mid- and large-sized companies—said their organizations already had or were developing climate plans, up from 66% in 2025. Over 90% expressed confidence that these strategies were enhancing business performance, particularly as extreme weather events pose increasing threats. The survey, conducted in January 2026, highlights a shift in financial decision-making, with 41% of leaders now integrating environmental factors, double the 22% reported in 2023. However, 38% cited cost as the primary obstacle, noting concerns over carbon pricing and the expense of low- and zero-carbon solutions. Sixty-eight percent said carbon pricing was already impacting their operations, while 67% reported challenges from the cost of sustainable products and services. For the first time, the survey explored AI adoption for climate planning. Fifty-seven percent of businesses use AI in daily operations, with 55% applying it specifically to climate-related strategies. Nearly two-thirds anticipate increasing AI investments in the coming year. Melissa Fifield, head of the BMO Climate Institute, emphasized the value of tracking these trends to better support clients as risks evolve. The findings suggest a cautious but determined approach among Canadian businesses, balancing sustainability goals with financial constraints. While progress is evident, cost remains a critical hurdle, particularly for smaller enterprises navigating the transition to low-carbon practices.