Business on the Edge: Building Industry Resilience to Climate Hazards

World Economic Forum (2024) | Retrofitting, Information, Technology

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The nature and climate crisis presents mounting risks to business profitability, supply chains, and global stability. This report offers a strategic framework for business leaders to understand and respond to these threats with urgency. With emissions already in the atmosphere projected to reduce global GDP per capita by up to 29% by 2050, the stakes are high. The report quantifies the impact of seven climate hazards—extreme heat, drought, wildfires, water stress, tropical cyclones, coastal flooding, and fluvial flooding—on fixed assets across 20 industries, forecasting annual losses of up to $610 billion by 2035 and $1.1 trillion by 2055. Telecommunications and utilities are among the most exposed, facing earnings declines of over 20%.

Beyond asset-level risks, the report explores irreversible tipping points in Earth systems and their cascading effects on food, health, infrastructure, technology, and finance. Even under Paris-al…