While the recent international climate conference COP30 may serve as a rallying point for global climate commitments, turning those aspirations into reality will require shared responsibility across governments and industry, with business leaders playing a critical role in driving meaningful action. That was the central message from three sustainability experts during the recent Impact Live webinar, "Leading through climate complexity," hosted by Ivey Business School and moderated by Dean Julian Birkinshaw, MBA ’91, PhD ‘95.
As governments continue to negotiate incremental progress at climate conferences, companies face mounting pressure to act decisively on emissions reductions, climate resilience, and strategic transformation. The panelists, Tom Ewart, HBA ’05, AVP Sustainability at Co-operators; Teanne von der Porten, MBA ’05, Executive Director of Sustainability and Climate Services at KPMG; and Robert Klassen, MBA ’89, Ivey's Associate Dean of Research, outline both the urgency and the practical pathways forward for organizations navigating this complex landscape.
The imperative for action
The necessity for immediate action is underscored by the risks businesses face during a period of global volatility. Von der Porten emphasized that companies must recognize climate change as a strategic risk rather than a peripheral issue. "Electricity demand is surging, emissions are rising, and the world is drifting off of course," said von der Porten. "For corporates, this new course isn't just a risk that's off on the side, it's a strategic one that we need to plan for." This urgency is reflected in Canada's commitment to achieving its Net Zero goals by 2050, objectives that remain critical and require action from all sectors.
If the world continues on its current trajectory with existing policies and pledges, global temperatures are projected to rise by approximately 2.5°C, exceeding the Paris Agreement's 1.5°C target. These higher temperatures pose significant threats to businesses, including disrupted supply chains, damaged infrastructure, and increased operational costs.
Ewart highlighted the financial implications already happening. "Last year was a record-breaking year for insured losses in Canada, which surpassed $9 billion. That's just what's insured. A significant more was lost in total economic damages," he stated. "The trend is scary, it's going in the wrong direction, and ignore these rising risks at your own peril."
The leadership challenge
For business leaders attempting to balance sustainability commitments with shareholder expectations and competitive pressures, the path forward requires both ambition and pragmatism. Von der Porten acknowledged this tension, noting that setting appropriate targets depends on understanding: "…here's what the peers in your industry are doing, here's where you are. Do you want to be above the pack? Do you want to be with the pack? Or do you want to be a laggard?”
Klassen emphasized that innovation must be central to any climate strategy, but cautioned that "innovation is a long-term game for most companies, often involving partners, often involving working within public policies." The challenge, he explained, is "to identify what is the most important lever for your firm" rather than attempting to address every dimension of climate risk simultaneously.
Ewart suggested reframing the conversation for skeptical stakeholders. "If that's who you're talking to, avoid such terms," he advised. "Start talking less in terms of climate risk and more in terms of catastrophic risk, for example, or talk about protecting asset values or unlocking free cash flow."
Practical pathways forward
The panelists offered concrete recommendations for companies ready to move beyond commitments to implementation. Von der Porten's prescription was direct: "Number one, you have to measure and understand your sources of emissions. And the second thing is then to make a plan."
She outlined major emission categories requiring attention, such as, supply chains, energy procurement and management, product and service innovation, and sector-specific sources like travel for professional services firms. For companies seeking transformation opportunities, she pointed to circular economy approaches, noting examples of retailers "looking at their waste streams and seeing how do we transform that into something new."
Ewart urged immediate attention to physical climate risks. "Spend some time assessing your vulnerabilities to flooding, extreme heat, wildfire, severe storms, and hail," he said. "Assess the vulnerabilities, not just to your own assets, but throughout your value chain." He recommended seeking expert support, noting that "we tend to have a relatively low risk-literacy."
Klassen stressed that while international forums like COP30 remain important for maintaining dialogue, "this is not a problem that will be solved by one country or one sector." Instead, businesses operating across multiple economies "do see implications emerging in terms of their own business models," making corporate action both necessary and inevitable.
The consensus among the experts: the time for incremental adjustments has passed. Companies that treat climate change as a peripheral concern rather than a strategic imperative
will find themselves increasingly uncompetitive and facing difficult challenges, while those that act decisively can unlock new opportunities even as they manage mounting risks.
Watch the full discussion from Impact Live – Leading through climate complexity by visiting Ivey Impact or Ivey’s YouTube channel.
