BUSINESS TRANSITION BAROMETER
2ᵉ edition
The most important survey providing strategic data on
businesses' climate action in Quebec
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Business Transition Barometer 2023
The Business Transition Barometer launched by Québec Net Positif is the very first study to focus specifically on climate action by businesses, including SMEs.
Thanks to the Barometer, it is possible to access representative and exhaustive data on the level of commitment of Quebec businesses to climate action. The Barometer debunks the myths surrounding the transition to a low-carbon economy, measures the current level of commitment of Quebec businesses to climate action, and tracks the evolution of their climate commitment over time.
Scroll down to find out more.
HIGHLIGHTS 2023
Customers are the main source of pressure prompting companies to reduce their greenhouse gas emissions (33%), a significant increase compared to 18% in 2022.
33 %
18 %
2023
2022
35 %
35 %
35 %
40 %
2023
2022
2023
2022
The two most important triggers for corporate climate action
Concerns and ideas of employees
and managers
The global environmental situation
/ climate crisis
Significant gap between willingness and climate actions implementation
Willingness
2023
2022
2023
2022
2023
2022
Capability
Taking action
82 %
84 %
68 %
58 %
57 %
52 %
Believe it is urgent to reduce GHG emissions
Feel well-equipped to act
Implement at least one climate action within their operations
Main benefits of implementing climate action
39 %
2023
34 %
2022
36 %
2023
42 %
2022
32 %
2023
43 %
2022
Strengthening brand image and reputation
Employees' sense of pride and belonging
Creation and offering products, solutions, and services that meet new market needs and expectations
NEW TRANSITION INDEX
The new Transition Index provides an overview of businesses' commitment to climate action. The average Transition Index for 2023 is 32.4, which means that Quebec businesses are implementing less than a third of desirable climate actions in their operations, value chains, organizational culture and to adapt to climate change.
35 %
25 %
21 %
11 %
7 %
Less than 20
20 - 30
31 - 49
50 - 70
71 and more
32,4
Average index
of transition
Quebec businesses implement less than a third less than a third of desired climate actions.
OUR RECOMMENDATIONS
1. Encourage more and more companies, including SMEs,
to rely on in-house or external environmental expertise
The Transition Index for businesses that say they "rely on internal or external environmental expertise" is 58.2, compared with 25 for businesses that say they "do not rely on internal or external environmental expertise". As a result, businesses with access to expertise implement more than twice as many climate actions as those without.
Relying on environmental expertise is the key factor that explains the implementation of climate actions within Quebec companies of all sizes, in all sectors and in all regions.
In particular, companies with at least 1 full-time employee and/or an external advisory committee are implementing more climate actions, and are more likely to be aligned with a likely transition pathway in the face of the accelerating transition to a low-carbon economy.
2. Promote and strengthen the strategic role of executives and boards of directors
Managers' commitment is directly linked to the implementation of climate actions and all aspects of alignment with a transition pathway.
Knowledge of the company's significant sources of GHG emissions, even without having carried out a complete GHG inventory, is directly linked to the implementation of climate actions.
3. Value the role
of employees and managers at all levels
Along with the climate crisis, it is the ideas and concerns of employees and managers that are the two main triggers for companies to take action.
4. Promote the importance of resilience and adaptation to climate change
In the face of increasing extreme weather events, to be considered "aligned with a likely transition pathway", companies need to be aware of the main risks inherent in climate change and the transition to a low-carbon economy across their value chain, and put in place transition plans to be prepared to deal with them.
5. Establish standards and a clear, predictable legal framework for sustainable, responsible marketing and communications
Customers are the main source of pressure for companies to reduce their GHG emissions. In addition, corporate brand and reputation is the main benefit declared by companies that take action.
At the same time, 80% of Quebec executives are unable to explain greenwashing in their own words.
In this context, there is a real risk that companies will respond to customer pressure and try to generate brand benefits from "green" products and solutions, without basing their public claims on facts or reliable data.
Companies with commitment and integrity want - and need - to remain a highly credible source of information about the performance of their operations, products and services.
It's time for Quebec and Canada to follow in the footsteps of the many international jurisdictions that already provide a framework for environmental declarations.
A clear and predictable legal framework will enable companies to innovate and maintain relationships of trust with citizens, and enable customers to make informed choices in line with their values and interests.
6. Increase
climate literacy across the business ecosystem
60% of Quebec executives are unable to explain carbon neutrality in their own words.
87% can't explain what decarbonization means, and 86% can't explain what direct and indirect greenhouse gas (GHG) emissions are. What's more, 50% of Quebec executives are unable to explain biodiversity in their own words.
To succeed in our desire for the whole economy to transition to a low-carbone economy, it is crucial for all executives to be equipped to take part in a constructive dialogue on the subject. It is our collective responsibility to help increase climate literacy within Quebec's business ecosystem.
LEARN MORE
To find out more, read Les Affaires' coverage of the Barometrer 2023 and watch the webinar presenting the results of the Baromètre 2023, hosted by Anne-Josée Laquerre and featuring panelists Grégoire Baillargeon and Stéphane Drouin.
To view the full Business Transition Barometer 2023 study, download the full report
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How to read the mappingThe mapping designed by the Québec Net Positive team highlights the growth sectors and the main existing and emerging levers within the low-carbon economy in Quebec. This overview is intended to help develop a common vision of the dynamics of the transition within the Quebec economy and to facilitate the identification and implementation of synergies. The legend allows you to quickly identify the different elements of the mapping: CURRENT DIRECTIONAL TRENDS The gray boxes at the top of the growth sectors and the levers summarize the main directional trend of the transition pathway that seems to be emerging for that specific economic sector or lever These trends in transition pathways are identified from academic research, industry association publications, government goals, or other credible sources STANDARDS & PERFORMANCE INDICATORS The light-colored boxes closest to the grey boxes present standards and measurement indicators - most of them specific to Quebec - for each of the key sectors and levers of the transition. In particular, the map lists the main barometers that allow us to observe the evolution of various aspects of the transition to a low-carbon economy in Quebec. GROWTH SECTORS The growth sectors presented at the top of the map provide an overview of the sectors that are best positioned to seize new business opportunities from the transition to a low-carbon economy and prosper during the transition. The energy sector is positioned at the heart of the growth sectors, thanks in part to the fact that Quebec is one of the only jurisdictions in the world to produce electricity that is close to 100% renewable, an asset that companies in all sectors can capitalize on to accelerate their transition. LEVERS & TRANSITION SIGNALS At the bottom of the map are the main sectors that play the role of key levers and from which pressure as well as financial and human resources emerge to help accelerate the transition businesses across all economic sectors. The Finance sector is positioned at the heart of the levers because Quebec is committed to becoming a world-class financial center in sustainable finance and play a leading role at the heart of the transition. Québec Net Positive is also one of the founding members of the Climate+Positive Investment Alliance (C+PIA) that is calling on investors to go beyond Net Zero to Net Climate Positive as quickly as possible to truly solve climate change and align with the latest science.
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About the MappingThe mapping of the low-carbon economy in Quebec is a visual representation that aims to: Highlight the growth sectors and the main existing and emerging levers on which Quebec can rely to create wealth and sustainable jobs, while accelerating its transition to a low-carbon, more just, prosperous and resilient economy. Equip key stakeholders with an actionable tool to simplify the identification of challenges and drivers for the transition and facilitate stakeholders engagement. Foster the integration of the transition perspective into business, investment, infrastructure and economic development strategies. The mapping is based on a database and qualitative information compiled by the Québec Net Positive team. It is presented in the form of an interactive .PDF document giving access to a glossary of key terms, available in French and English, to help foster a constructive dialogue around a common language of the transition.
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October 2022: Overview of major updatesIn order to reflect the transition to a low-carbon economy within the Quebec economy, the October 2022 update includes additions or improvements to 194 boxes in the map, including: For the first time, we have been able to identify directional trends for transition pathways that are emerging for each of the growth sectors and levers In this update, we have added a number of barometers and measurement indicators specific to Quebec, related to certain growth sectors and levers, which allow us to measure the state of transition in Quebec from different angles, as well as local, national and international reference frameworks that have an influence on the transition pathways of Quebec businesses The notion of "governance" has been added to the talent lever, in order to represent the acceleration of the mobilization of a large number of stakeholders, sectoral associations and business groups towards the integration of ESG aspects in corporate strategy and operations, including the fiduciary duties of boards of directors and management team in the face of climate change The visual of the manufacturing sector has been updated to reflect the transition dynamics around the value chains in that sector December 2021 – Updates Overview June 2020 – Read the mapping launch press release