Federal government advisors are warning that most Canadian businesses are unprepared for the inevitable effects of climate change. This is the crux of a report released by the National Round Table on the Environment.
Previous analysis done by the Round Table shows that climate change will siphon $5 billion a year from the Canadian economy by 2020, costs will keep soaring and reach between $21 billion and $43 billion a year by 2050.
As reported in Global News, The National Round Table talked with businesses in Canada to see what they are doing to manage climate change. They also looked at companies that are planning for climate change both in Canada and around the world.
Despite the far reaching impacts of climate change, neither business nor government has the plans in place to deal with the losses. Roundtable president David McLaughlin indicated that both business and governments need to rethink the way they manage the risks associated with climate change. “We say climate change is a material risk,” he said in an interview. “You’ve got a disconnect between the way businesses run and think about their business…and in terms of the climate,” McLaughlin added.
The report urges securities regulators to increase their enforcement of disclosure guidelines, to make sure companies are showing investors what they are doing about climate change. The researchers also recommend that companies review their infrastructure and assess the impact climate change will have on their markets, their products and services.
McLaughlin underlined the threat saying, “Climate change is so pernicious in the way it affects business and the way it affects the economy….that businesses have to look right across their operations and see where climate change has an impact, and look and see what they can do about it.”