Survey Analysis: Companies Taking the Most Climate Action See Business Value
What makes a company a leader when it comes to responding to the impacts of climate change?
How are leaders different from other companies?
What lessons do leading companies have for other businesses?
To address these questions, we used results from the third BMO Climate Institute Business Leaders Survey to define leading companies in the U.S. and Canada with a set of four criteria, and we explored the profile of this cohort. Our criteria included companies that:
Are concerned about the impact of climate change on the future of their business;
Already have a plan in place to address climate change;
Are confident that their climate plans are making a difference;
Have climate strategies in place for at least four of the 12 actions asked about in the survey
Methodology
Conducted by Pollara on behalf of the BMO Climate Institute, this online survey interviewed 700 business leaders in the U.S. and Canada from companies with at least five employees. Business leaders are those who are in a senior position at their company and who identify themselves as senior decision makers. Survey research took place February 10 to February 21, 2025.
This article focuses on how survey respondents that fit these criteria--we call them Climate Leaders--compare with other companies in the survey. The research shows that Climate Leaders are spurred to take action mainly because they want to support their business, and they are more likely than other companies to see the business impact of climate change happening sooner. More highlights are below.
Climate Leaders Focus on Business Impact
Climate Leaders are often motivated to take climate actions because they understand the impact on their business, and that sets them apart from other companies. More than two-thirds of Climate Leaders (68%) say they are inclined to take steps to address climate change for the good of their business, much higher than the 50% of other respondents who say the same thing.
Compared with other companies, Climate Leaders are more likely to draw on their customers’ perspectives as they implement climate plans and pursue opportunities. Nearly half of Climate Leaders (48%) say customer expectations are why they are taking climate actions, much higher than the 34% of other companies.
Climate Leaders are more likely to believe their companies operate better with climate plans in place. A third of Climate Leaders (33%) say their companies can be more profitable by addressing climate change, higher than 22% among other companies. In addition, 38% of Climate Leaders say their companies can be run more effectively with established climate plans, 11 percentage points higher than other companies.
Similar to other companies, Climate Leaders are also focused on the social and environmental impacts of climate change, with 56% saying they are taking action to support the environment, compared with 55% of other respondents.
For Climate Leaders, Business Impact Will Occur Sooner Rather than Later
Climate Leaders tend to expect climate change and market adaptations to its impact will affect their business more quickly than other companies. When asked in the survey about a dozen different climate-related external factors, Climate Leaders are much more likely than other companies to say either they are having an impact now or they will have an impact within three years.
For example, 91% of Climate Leaders say higher costs for low- or zero-carbon products and services are having an impact now or will within three years, sharply higher than the 64% of other companies.
Higher energy costs (88% vs 78%), demand for "green" products (86% vs 61%), carbon pricing (85% vs 60%), and energy supply interruptions (85% vs 55%) were other areas where a significantly higher share of Climate Leaders compared with other companies either say they are affecting their businesses now or will be within three years.
Lack of Data is the Largest Barrier for Climate Leaders
For Climate Leaders, the most frequently cited barrier to developing an effective climate plan is a lack of data to set informed targets and to track progress. A quarter of Climate Leaders say this is a significant barrier vs 17% of other survey respondents.
Costs are also a concern for Climate Leaders but not in the same way it is for other companies. The survey showed 22% of Climate Leaders cited cost as an obstacle to developing effective climate action plans, lower than the 28% of other companies.
The survey results suggest that companies early in the process of developing climate strategies should consider how to gain access to the right sources of data to help set informed sustainability goals. Relevant data will also help companies accurately monitor the results of climate-related programs and initiatives.
Results from the survey show that Climate Leaders are taking more actions to address climate change because they are driven by an understanding of the impact on their business. A lesson for companies still developing their climate plans is that Climate Leaders are not just protecting their businesses from risks. Some see climate actions as helpful for their companies to maintain profitability and operate effectively and thrive into the future.
What to read next:
