When we think about finance’s role in the climate transition, large institutions usually come to mind first. Yet 99.4% of the 6,831 Québec businesses in the finance and insurance sector are SMEs.
A new study by Finance Montréal shows how these businesses can make decarbonization a competitive lever rather than just a constraint. The study was written for Finance Montréal by Rose des Vents, a sustainable finance consulting firm.
An underestimated collective weight
Brokerage firms, asset managers, financial services firms: taken one by one, the sector’s SMEs have a modest operational footprint. Taken together, they direct a significant share of capital, credit and risk coverage in Québec.
That is where the real stakes lie. In the financial sector, so-called “financed” emissions, tied to investment, lending and insurance activities, can be more than 700 times greater than operational emissions, according to CDP, the international environmental disclosure organization. Every capital allocation decision therefore has an impact that reaches well beyond the company’s walls.
Yet the gap between intention and action remains wide. According to the Québec Net Positif 2025 Business Transition Barometer, 84% of Québec businesses believe it is urgent to reduce their emissions, but only 22% have completed a GHG inventory, and 37% say climate issues are discussed by their board of directors.
As much about competitiveness as about risk
The study points out that climate change exposes the financial sector to physical and transition risks that affect asset values and counterparty solvency. In 2024, extreme weather events cost Canadian insurers $9.4 billion.
Above all, it highlights external pressure: the expectations of investors and large clients, who face stricter requirements themselves, are passed down to SMEs through value chains. The public framework is also taking shape. In April 2026, Ottawa announced the creation of the Taxonomy and Transition Council, and in June, Québec published its Feuille de route en finance durable (sustainable finance roadmap). SMEs that structure their approach now are getting ahead.
Two Montréal SMEs, two entry points
The study draws on two B Corp-certified Montréal portfolio managers that took different paths.
At Borealis GAM, climate is an integral part of the risk analysis of every security, just like profitability or capital structure. The firm relies on the TCFD and SBTi frameworks to assess the risks of portfolio companies and the credibility of their decarbonization plans.
“A company that adopts sustainable practices can build a more loyal client base, willing to pay a premium for the products and services it offers. Sustainability is therefore not only an environmental consideration: it is also an economic issue.”
Valérie Cecchini — Managing Partner, Borealis GAM
At Evovest, which specializes in quantitative strategies based on machine learning, the journey began with what the company controls directly: its own practices. Fully subsidized public transit, measurement and full offsetting of operational emissions, and an exclusion list of about one hundred securities. Its operational carbon neutrality target, set for 2030, was reached in 2025.
“For a services company, decarbonizing your operations is simple. I think it’s a mountain in people’s heads, but in reality, it can be done in a morning.”
Carl Dussault — Founder and CEO, Evovest
Six entry points for taking action
The study offers a practical framework that each business can adapt to its size and resources. It is not a mandatory sequence:
- Understand your main sources of emissions, paying particular attention to financed emissions.
- Anchor climate in governance, starting with the board of directors.
- Get the right support, internally or externally: 78% of businesses say they lack access to environmental expertise.
- Set decarbonization targets with interim milestones.
- Design a strategy suited to your resources.
- Track your results and report on your progress transparently.
The core message is clear: you don’t need all the answers to get started. An imperfect first calculation is better than an ideal method that never materializes.
This study is part of I.M.P.A.C.T. (Industries mobilisées pour l’action climatique et la transition), an initiative led by six Québec industrial clusters, including Finance Montréal, with financial support from the Government of Québec under the Action-Climat Québec program. It builds on Finance Montréal’s work to strengthen Québec’s position in sustainable finance.
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