Introduction For many businesses, climate change is no longer a distant environmental concern. It is already affecting how products are made, transported and delivered. In Canada, the 2026 wildfire season has already disrupted transportation and business operations. In July, wildfires in northwestern Ontario forced Canadian National Railway to suspend freight operations along part of a major cross-country rail route (Reynolds, 2026). CN rerouted some traffic through the Unite

“Firms ignoring the climate crisis will go bankrupt” – Mark Carney, then governor of the Bank of England, famously declared in 2019 (D., Carrington, 2019). In other words, those companies failing to move towards net zero emissions and failing to take climate risk into account will not survive. But what exactly is climate risk, how does it impact your business, and what measures can you take to build resiliency? Simply put, climate risk is financial risk related to our changi