Climate strategy is now a core HR imperative in Canada

Nearly eight in 10 Canadian business leaders now have or are developing a climate plan — and HR teams are being asked to lead the charge, according to a new BMO Climate Institute survey.

The 2026 BMO Climate Institute Business Leaders Survey found that 78 per cent of Canadian business leaders say their organization has or is developing a climate plan, up from 66 per cent in 2025. More striking still is the conviction that comes with that commitment: overall confidence that climate and resilience strategies are improving business outcomes has risen to 91 per cent across North America in 2026, up from 88 per cent in 2025 and 84 per cent in 2023, according to the survey.

The need for organizations to boost their climate strategy is increasing. The National Oceanic and Atmospheric Administration (NOAA) and the World Meteorological Organization have announced that El Niño — a periodic climate pattern that develops in the tropical Pacific that affects global weather patterns — has developed, and they’re predicting that it will intensify to a moderate or strong level this fall. The pressure on organizations to plan for disruption is increasing with climate change, and for HR leaders in Canada, the question is no longer whether climate strategy belongs in the boardroom — it’s how quickly they can embed it into workforce planning, talent development, and long-term organizational resilience.

For Melissa Fifield, Head of the BMO Climate Institute, the survey numbers reflect a fundamental change in how organizations are relating to climate risk.

“High-performance organizations are investing proactively for the long term,” says Fifield. “They are investing in climate solutions over the long term, versus more reactive responses, which can help prevent loss and help avoid costs over time.”

Why HR is now central to climate planning

The BMO survey, conducted in January 2026 among 370 senior Canadian decision-makers from mid- and large-sized commercial enterprises, points to a structural shift — one that places human resources professionals at the centre of climate preparedness, not on its periphery, according to Fifield.

She identifies three workforce dimensions that HR leaders must now address. The first is talent investment: training employees to build expertise in climate planning, or recruiting that expertise externally, she says. The second is operational workforce planning — preparing for the disruptions that extreme weather can impose on employee safety and the ability of workers to reach job sites. The third, and perhaps most significant for HR, is employee expectations.

“Increasingly, employees expect their companies to have a plan,” says Fifield. “I think most employees expect their company to have a business continuity plan, and we're seeing these climate action plans converge with broader business strategy and business continuity plans as well — employees see that as a sign of a well-managed and stable company and a stable employer.”

Sustainability as a competitive advantage

That convergence is playing out in real organizations across the country. Claudia Ursache, Human Resources Director at MTU Maintenance Canada in Richmond, BC, says sustainability has become a genuine competitive advantage — particularly in the aerospace maintenance, repair, and overhaul sector in which MTU operates, where reducing hazardous waste, recycling engine components, and cutting emissions from operations are not abstract goals but operational realities.

“In many industries, sustainability has become a competitive advantage rather than just a compliance exercise,” says Ursache. “It's not only about reducing waste or carbon emissions — it's about building a resilient organization that can thrive for decades while meeting the expectations of customers, employees, and investors.”

For HR leaders navigating recruitment and retention challenges, Ursache's point carries strategic weight. Climate and sustainability commitments are increasingly a factor in attracting talent, especially among younger workers, she adds.

“Younger generations especially — it's important to them,” says Ursache. “They want to work for companies that are conscious about the climate and are working toward a world that’s sustainable.”

The cost argument is shifting

One of the most persistent barriers to climate investment has been cost, according to the BMO survey. In Canada, 41 per cent of leaders say their companies are integrating environmental considerations into financial decision-making, nearly double the 22 per cent in 2023. Yet the survey also found that nearly four in ten business leaders still cite cost as the biggest obstacle to advancing sustainability and resilience goals.

That view on costs is increasingly at odds with reality, says Fifield. “I think actually the reverse of that perception is true, which is that costs for many of these climate solutions are maybe less than business as usual,” she says. “In the face of volatile energy prices in particular, we're seeing that investments in climate solutions and renewables — these are decisions that organizations are making because they’re a driver of profitability and cost reductions, and they also happen to have climate benefits as well.”

For HR leaders making the internal case for climate-related workforce investment, that reframe matters. The return on investment isn’t only environmental — it’s operational, financial, and reputational. HR professionals who understand the intersection of workforce strategy and organizational resilience are well-positioned to lead that conversation with the C-suite.

AI is entering the climate planning toolkit

The 2026 survey also marks the first time the BMO Climate Institute asked business leaders about the role of artificial intelligence (AI) in climate planning. More than half of organizations are now using AI in climate planning, with seven in 10 leaders viewing AI as helpful for developing their climate plans, designing green products, planning resilience for extreme weather, and handling reputational issues.

Fifield says the response from business leaders has been pragmatic rather than idealistic.

“What the results told us is that AI is viewed by business leaders as a practical tool to help better understand and manage complex risks, including those like extreme weather,” she says. “The majority of business leaders are telling us that they see AI as an enabler — it's helping to enable efficiency, resilience, and more informed decision-making when it's applied well and responsibly.”

From strategy to culture: the mindset shift

The overarching message from both the BMO survey and practitioners on the ground is one of integration. Climate planning can no longer be treated as a separate stream managed by a sustainability officer in isolation. It must be woven into performance frameworks, executive incentives, change management, and day-to-day decision-making.

For Fifield, the survey signals a shift from questions about whether to pursue climate planning toward how it supports competitiveness and long-term performance. “What we're seeing from these results is that not only are companies and business leaders increasingly having plans, but their confidence that those plans are actually driving performance improvements is rising,” she says. “It's a holistic view on company performance that includes things like really thoughtful workforce planning.”

With El Niño expected to strengthen through the coming months — it could be the strongest this century and make 2027 the hottest on record, according to the NOAA — and Canada's wildfire and extreme weather risk remaining elevated, the organizations that have built climate literacy into their cultures — and into their HR strategies — will be better placed to absorb disruption, retain talent, and compete for the long term.