ESG Are Becoming a Reflex for Canadian Business Leaders

A recent survey revealed that Canadian SMEs perceive ESG challenges as business opportunities that will improve their performance.

As a business leader, you’re facing concrete challenges in 2025 such as pressure on margins, a shortage of skilled workers and increasingly demanding requirements from clients and partners. However, you’re not alone!

A recent survey showed that environmental, social and governance (ESG) factors are being integrated into organizational strategies as an opportunity to boost performance and reduce risks. While preconceived notions may suggest that these factors are an additional constraint, business leaders view them as an opportunity.

An ESG strategy viewed as a solution

The latest figures from Grant Thornton’s International Business Report (IBR) are very clear. A total of 44% of medium-sized Canadian companies plan on increasing their investments in ESG in the next 12 months.

Indeed, this is neither a trend nor a response to new legislation. It’s a conscious business choice to invest in the future.

But why? Because business leaders want concrete results and realize that ESG criteria will allow them to reach their goals.

• 48% estimate that ESG strategies will improve their long-term profitability.
• 41% view them as a way to reduce their costs.
• 41% consider ESG strategies an asset to attract and retain talent, a crucial issue in the current context.
• 45% use them to bolster their supply chain or resilience.

Beyond these benefits, SMEs place innovation at the centre of their ESG strategies. Investments are made in developing new sustainable products to meet the latest market demands and stand out from the competition (28%) or in focusing on digitization to boost efficiency (27%).

In this way, even when faced with changes in regulatory requirements and political pressure, organizations continue their efforts in the knowledge that they’re preferable and profitable.

• Close to 40% state that they remain strongly committed to sustainability despite any external changes.
• Only 22% intend to pause or stop working on their ESG reports.

And on an international level?

Incidentally, our neighbours to the south are the most enthusiastic G7 nation with regard to corporate ESG investments and the majority (57%) anticipate long-term profitability. Their strategies appear to be significantly more proactive and integrated into growth such as launching new sustainable products (41%), and business valuation aspects, including exit options and attractiveness to investors (41%).

In Europe, there is sustained momentum in response to legislation, market pressure and societal demand.

Thus, while Canadian organizations are clearly committed to integrating ESG criteria into their strategies, they must accelerate their structuring, innovation and transparency efforts to remain competitive when dealing with increasingly demanding North American and European markets.

For more information on this topic, refer to the IBR.

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