TORONTO — Work on climate change has largely focused on preventing it from getting worse, but as a new RBC report points out, businesses are also starting to think more about potential spending on adaptation and preparation as the costs of disasters
TORONTO — Work on climate change has largely focused on preventing it from getting worse, but as a new RBC report points out, businesses are also starting to think more about potential spending on adaptation and preparation as the costs of disasters pile up.
The report says that extreme weather and natural disaster costs already totalled US$368 billion last year, 14 per cent above the long-term average since 2000, and that this year could match or exceed the total.
The costs are leading to more attention in boardrooms, with the report noting mentions of climate change on the rise and hitting new peaks in both U.S. and Asia, though in Canada talk has dropped in recent months.
RBC says companies in industries like utilities, insurance and industrial services have been talking more about the financial risks, but also about the potential tailwinds as they’re set to benefit from rising demand for their products and services that help in adaptation and resilience.
The report says that so far it’s still a challenge to finance bigger, longer-term adaptation efforts, which can include measures like burying power lines and building floodways, but that a study out this year found that every $1 invested in adaptation and resilience generates more than $10 in benefits over a decade.
The RBC report focused on U.S. companies that could benefit from the trend, but notes that Canadian companies including Nutrien, MDA Space Ltd., and some in the waste management and engineering sectors could also see increased demand.
This report by The Canadian Press was first published June 23, 2025.
Companies in this story: (TSX:NTR; TSX:MDA; TSX:RY)
Ian Bickis, The Canadian Press