TORONTO — Confidence is growing among Canadian business leaders in actions meant to reduce climate risk, a new report has found.

The latest BMO Climate Institute Business Leaders Survey said 78 per cent of surveyed leaders reported their companies already had or were developing a climate plan, up from two-thirds of organizations last year.

More than 90 per cent of respondents — a slight uptick over 2025 — expressed confidence that these strategies were improving business outcomes, especially at a time when extreme and unpredictable weather has become a leading climate-related concern for businesses.

This year’s survey was conducted in January 2026 among 370 Canadian business leaders, mostly from mid- and large-sized commercial enterprises.

“At BMO we value this type of research because it gives us a clear, data-driven view into how business leaders are responding to climate realities,” said Melissa Fifield, head of the BMO Climate Institute, in a news release.

“By tracking these shifts year over year, we can better support clients as expectations and risks continue to evolve.”

In Canada, 41 per cent of leaders said their companies were integrating environmental considerations into financial decision-making, up from 22 per cent in 2023.

But 38 per cent cited cost as the biggest obstacle to advancing sustainability and resilience goals. The survey suggests there remains a sensitivity toward carbon pricing and the cost of low- and zero-carbon products and services.

The poll found 68 per cent of respondents thought carbon pricing was affecting their business now or would soon, while 67 per cent reported being affected by the cost of low- and zero-carbon products and services.

For this year’s survey, BMO said it also asked respondents for the first time how they are using artificial intelligence to help plan for climate events.

Around 57 per cent of Canadian organizations were using AI in daily operations and 55 per cent were implementing those tools specifically for climate planning.

Nearly two-thirds expected increased AI investment over the next year.

This report by The Canadian Press was first published May 19, 2026.

Sammy Hudes, The Canadian Press