Geography: a factor in businesses’ weather-related impacts and emergency preparedness

The latest data from the Canadian Survey on Business Conditions indicate that, in the second quarter of 2024, about one in seven (14.1%) businesses across Canada were impacted to some degree by natural disasters or weather-related emergencies in the 12 months prior to the survey. Of those, nearly 3 in 10 (28.8%) reported a high impact, while 37.3% reported a medium impact and 33.9% reported a low impact.

More than one in five businesses (22.4%) that were impacted by natural disasters or weather-related emergencies were not prepared for such events, while a roughly equal proportion (22.5%) was fully prepared. More than half of businesses (55.1%) were partially prepared.

In addition to its sector, size, and number of employees, the location of a business also influenced impact and preparedness rates.

Businesses in the Northwest Territories, Nova Scotia, Nunavut impacted the most

In the second quarter of 2024, nearly three in four businesses in the Northwest Territories (73.9%) and more than one-third of those in Nova Scotia (37.6%) said they were impacted by natural disasters or weather-related emergencies in the 12 months prior to the survey.

Meanwhile, in 2023, Nova Scotia and the Northwest Territories were among the areas whose populations were most affected by wildfires across Canada in what was the worst wildfire season on record. Wildfires and drought also blanketed a lot of territory in the western provinces, while flooding, an ice storm and a hurricane were among the extreme weather events to hit the eastern provinces.

Also above the national average (14.1%) were businesses in Nunavut (30.3%), Prince Edward Island (26.2%), Saskatchewan (22.0%), Yukon (20.8%), Alberta (18.8%), British Columbia (16.5%), and New Brunswick (15.2%).

Significant urban-rural differences

In the second quarter of 2024, nearly 1 in 4 (23.6%) rural businesses were impacted nationwide, compared with just over 1 in 10 (12.0%) urban businesses.

Urban businesses were more likely to report that they were fully prepared for natural disasters or weather-related emergencies (25.7%) than rural businesses (15.4%), while the proportions of businesses that were partially prepared were relatively close between urban (56.3%) and rural (52.4%) areas.

Close to one-third of rural businesses (32.1%) were not prepared for climate change events, compared with nearly one in five (18.1%) urban businesses.