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NORTH AMERICA
CANADIAN BUSINESSES SAY THEY WON ’ T REACH CLIMATE GOALS WITHOUT MORE GOVERNMENT SUPPORT
" More than 84 % indicated that they are using existing government incentives to reduce their environmental footprint , but to stay competitive , they believe it is vital that Canada keeps pace with the new green investments and tax measures being adopted in the US . With the right supports and tools , Canadian businesses can play a key role in driving clean growth , creating sustainable jobs and carving out a unique place for Canada in the new global economy ."
Key survey findings
Most Canadian business leaders are committed to integrating environmental , social and governance ( ESG ) practices into their business strategies but say they need more help from the government if Canada is to transition to a greener economy , finds a new KPMG survey .
The survey of 505 medium-sized enterprises has revealed that most believe the government needs to do more to compete with new US and European Union green tax legislation , with eight in 10 ( 80 %) calling for additional tax incentives and investment tax credits to make it feasible for their company to adopt clean technologies and clean energy sources .
" Canada ' s business leaders are ready to make the green transition but need the government to create a more supportive environment , including further tax relief to help them transition away from carbonintensive products and invest in clean energy and net zero technologies ,'' said Lucy Iacovelli , Canadian Managing Partner , Tax , KPMG in Canada .
• Over four-fifths of respondents ( 82 %) believe smalland medium-sized enterprises are key to the green transition in Canada
• The majority ( 89 %) say they have already integrated ESG practices into their business strategies
• More than three-quarters of those surveyed ( 84 %) stated their company currently uses government incentives to reduce their environmental footprint
• The overwhelming majority ( 80 %) think their company needs more consumer incentives for Canadians to adopt clean energy products
Prolonged economic volatility a key factor
KPMG ' s survey reveals 84 % think inflationary pressures will last longer than expected , stretching into 2024 . Most ( 81 %) peg this continued volatility , in part , on the green energy transition as well as supply shocks caused by deglobalisation and rising political pressures .
" While committed to a green future , high inflation and rising interest rates are making the transition and the required investments increasingly more expensive for business ," added Mary Jo Fedy , KPMG ' s National Enterprise Leader .
" With the economic volatility likely to drag on into the foreseeable future , most want government investment to increase significantly in order to develop the clean technologies and solutions that businesses need to meet Canada ' s climate commitments .” �
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