Nine in 10 business leaders in the United States and Canada who have or are developing climate strategies are confident in their actions to mitigate climate-related risks, as they focus on improving their resilience and competitiveness, according to the fourth edition of a survey commissioned by the BMO Climate Institute.
Nearly three-quarters (73%) of respondents say they have or are developing plans to address climate-related risks and opportunities, up from 69% in 2025.
What’s more, a significant majority of organizations in 2026 also see AI as helpful for developing climate plans, understanding risk exposure, and preparing for extreme weather events. While barriers such as cost and talent shortages are currently preventing widespread adoption, 62% of survey respondents expect their companies’ investment in AI to grow in a year.
“An overall rising trend in confidence has coincided with a view among some companies that taking climate action has a positive commercial impact,” says Melissa Fifield, head, BMO Climate Institute.
Key takeaways:
· Overall confidence rose for the second consecutive year, reaching 91% in 2026, up from 88% in 2025 and 84% in 2023. The results signal a clear shift in business thinking—from whether to act on climate-related risks and opportunities to how climate action supports performance and competitiveness.
· Nearly one-third of companies (32%) say they have a formal strategy for tracking and managing supply chain emissions, up 8 points from 24% in 2023. Furthermore, 38% of respondents say their climate strategies take environmental impact into account when making financial decisions, up 13 points from 25% in 2023.
· Top 5 concerns when thinking about the impact of climate-related risks on business are extreme weather (28%), regulatory requirements (16%); supply/demand of materials (15%); operational disruptions (14%); and greenhouse gas reductions (9%).
· Factors that could have an impact on climate actions this year are regulatory changes (14% expect an increase); pressure from customers (43% expect an increase); and pressure from competitors (38% expect an increase).
· Perceived barriers to developing an effective climate plan are cost, data quality, internal expertise, competing priorities and awareness.
· Canadian businesses are more sensitive to carbon pricing and higher costs for low or zero-carbon products and services than their U.S. counterparts.
· Three-fifths of respondents say AI is already used in daily operations or climate planning, either as a core comoponent or when practical.
