QNP unveils its new Corporate Transition Index
Second edition: Quebec Businesses Transition Barometer
MONTREAL, Nov. 8, 2023 2023 –QNP unveils today the results of the second edition of the Quebec Business Transition Barometer the most comprehensive survey on the climate action of companies in Quebec, which now includes a new Transition Index. To carry out this important study, QNP commissioned the research firm Léger, which conducted the survey with 596 leaders of Quebec companies.between August 18 and September 13, 2023.
The new Transition Indexprovides an overview of companies’ 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 the desirable climate actions in their operations, value chains, organizational culture, and to adapt to climate change. If a business did everything it could in these four key components to be perfectly aligned with a low-carbon transition pathway, its score would be 100. The Transition Index reveals that 7% of Quebec companies have an index of 71and more; 11% between 50 and 70; 21% between 31 and 49; 25% between 20 and 30; and 35% under 20. While the Transition Index highlights the scale of the challenges, this second Barometer outlines the winning conditions for progressing towards a low-carbon economy.
“Thanks to the Barometer and the new Transition Index, it is now possible to trackthe progress of climate action implementation by companies across Quebec,from the smallest to the largest, including SMEs. The results reveal concrete avenues to help businesses successfully engage in the significant ongoing economic transformation,” emphasizes Anne-Josée Laquerre, General Director and co-initiator of QNP.
Key highlights include:
- La culture organisationnelle et le facteur humain constituent des leviers incontournables pour s’engager avec succès dans la transition. Cette composante est celle qui a le plus de poids pour expliquer la mise en œuvre d’actions climatiques au sein des entreprises. Comparativement à l’Indice de transition moyen de 32,4, l’Indice moyen est significativement plus élevé chez les entreprises qui comptent sur les facteurs suivants :
- Internal or external environmental expertise (58.2), compared to the index of companies that do not rely on such expertise (25.0)
- Committed management team (41.3), aware of risks (39.0), and especially aware of the benefits and business opportunities of the transition (42.8)
- Committed board of directors (49.6), aware of risks (47.1), and aware of the benefits and business opportunities of the transition (49.1)
- Customers are the main source of pressure prompting companies to reduce their greenhouse gas emissions (33%), a significant increase compared to 18% in 2022.
- The two most important triggers for organizational climate action are the concerns and ideas of employees and managers, on a par with the global environmental situation/climate crisis (35%).
- Business leaders are more aware of the impacts and risks of climate change and the accelerating transition to a low-carbon economy. Risk perception has almost doubled in 2023, with 23% of respondents stating that climate change and the acceleration of the transition present a great deal or quite a bit of risk compared to 12% in 2022.
- The gap between willingness and climate actions implementation persists.While 82% of business leaders believe it is urgent to reduce GHG emissions, 68% feel well-equipped to act, and 57% say they are implementing at least one climate action within their operations.
- Among climate actions implemented in the operations, the study reveals an upward trend in the optimization of energy management(30% vs. 22%) as well as transport optimization(29% vs. 22%). These aspects constitute the two most significant sources of greenhouse gas emissions in the Quebec economy.
“Climate change and its social and economic repercussions are undoubtedly one of the most important issues of our time. Our economy and businesses must adapt to new realities, and for that, they need to rely on reliable data to measure their progress and the evolution of their strategy. The QNP barometer is thus an essential tool. At BMO, supporting our clients and the entire economic ecosystem of Quebec in this transition is a priority. It was therefore only natural for us to support this project.” Grégoire Baillargeon, President, BMO Financial Group, Quebec.
QNP thanks its partners: BMO and Investissement Québec; its collaborators: the Business Development Bank of Canada (BDC), Cascades, Hydro-Québec, and PME Montréal Est-de-l’Ile; as well as the FTQ Solidarity Fund and the experts CASACOM, Ciblexpert, and Futur Simple for their support.
For more information
- Webinar of results rebroadcasted: click here
- Download the 2023 Quebec Business Transition Barometer report: cliquez ici
- Find out more about our Sector and Regional Barometers: contact us
- This press release was published on the news wire.
About Québec Net Positif
QNP is an independent non-profit think tank whose mission is to accelerate the transition to a low-carbon and “net positive” economy. Supported by the McConnell Foundation, its mission is to raise awareness, mobilize and equip businesses to seize new business opportunities, go beyond mitigating risks, and activate their full potential to create positive impacts on society and the environment.