Canadian leaders ramp up weather emergency readiness amid wildfire woes

With wildfire season ramping up in Canada and as the cleanup efforts continue in Los Angeles County four months after wildfires devastated entire communities, new research by KPMG in Canada reveals that 91 per cent of Canadian business leaders are concerned about the potential for an urban climate disaster in Canada.

A similar number – 93 per cent – worry their business will be impacted this year by extreme weather, with most saying that their operations were damaged or disrupted last year. 90 per cent now factor into their plans an expectation that extreme weather “could – and will – happen at any time” and 68 per cent are preparing for a climate-related weather emergency, said the company.

Roopa Davé

“As wildfires rip through parts of Manitoba and northwestern Ontario, and after what we witnessed in L.A., it no longer matters where you live – whether it’s in Canada’s remote boreal forest or in the middle of a major city – the growing intensity and frequency of extreme weather events makes everyone vulnerable,” said Roopa Davé, a Vancouver-based partner and National Climate Risk Leader, KPMG in Canada. “It was heartbreaking to see wildfires across our country two summers ago destroy a total area larger than England, and we all remember the tragedies that unfolded in Jasper, Lytton, Fort McMurray, and Slave Lake, but the large-scale catastrophic destruction in L.A. – the most-populous county in the U.S. with nearly 10 million people – left everyone shaken.

“Our new survey shows a significant trend in concern from CEOs in the two years since we started surveying the impacts of climate change on Canadian businesses. In 2023, they viewed extreme weather as a possible factor in their operational and risk plans. But today it’s absolutely a must-plan-for reality. We now see business leaders actively take steps to protect their companies and employees, ranging from updating continuity plans and crisis management protocols to adopting climate-modelling data analysis and tools, retrofitting buildings, investing in renewable energy sources and educating employees on better preparedness and response.”

• 91 per cent of 351 Canadian business leaders say that they are more worried about extreme weather affecting their business operations after the catastrophe in L.A., with over two-thirds (68 per cent) say they are preparing for such a calamity
  • 61 per cent say they are “extremely concerned”, of whom 43 per cent are taking precautions
  • 31 per cent are “somewhat concerned”, of whom 25 per cent are taking precautions
• 93 per cent are concerned their company will be impacted by extreme weather this year
  • 52 per cent are more concerned
  • 28 per cent are as concerned as they were last year
  • 13 per cent are worried but less concerned, which indicates the steps they’re taking to adapt and build resilience
• 90 per cent factor into their plans an expectation that extreme weather “could – and will – happen at any time”
• The impacts of extreme weather events last year were:
  • 68 per cent saw their profits reduced
    • 30 per cent say profits were reduced by 6-10 per cent
    • 14 per centsuffered 11-25 per cent reduction in profits
    • 6 per cent suffered more than 25 per cent in reduced profits
    • 18 per cent say profits were reduced by 5 per cent or less
  • 65 per centhad their operations directly impacted (e.g., shut down operations, or suffered loss of power, water supply, communication and other utilities that impaired operations)
  • 60 per cent say employees were directly impacted (e.g., lost productivity) last year
  • 52 per cent experienced disruptions in their supply chains
  • 47 per cent say their costs rose significantly
  • 43 per centsuffered damage to their physical location (e.g. store, factory, physical assets, etc.)

Credit: Pixabay

KPMG said the survey finds that 53 per cent are investing in infrastructure modifications to withstand extreme weather. This might include retrofitting buildings to be more heat-resistant, embracing adaptive architecture, or incorporating permeable materials and green infrastructure to manage stormwater runoff and reduce flooding, says Ms. Davé.

78 per cent are investing in data, analytics and technology solutions to identify, monitor or mitigate climate risk.

Leon Gaber

“The increased likelihood and severity of extreme weather events means we can’t let our guard down,” said Leon Gaber, a Victoria-based partner and National Lead for KPMG in Canada’s Critical Infrastructure Resilience and Emergency Management practice. “Whether disaster strikes in remote areas or in urban centres, companies and governments must continuously evaluate and update emergency planning and procedures to incorporate lessons learned and best practices.

“By using data and advanced technologies such as artificial intelligence, remote sensors, drones and digital twins, companies can enhance their ability to forecast climate-related events, assess their effects on operations, and respond faster and more effectively.”

According to the KPMG survey, two-thirds of business leaders say they have a multi-year climate adaptation plan with short-, medium-, and long-term actions tailored to their business operations to make their company more resilient, and 56 per cent are collaborating with climate experts to improve their preparedness for long-term climate changes. 62 per cent have performed a climate risk assessment to identify climate hazards and 66 per cent plan to do a climate risk assessment within the next two years.

Mario Toneguzzi

Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.