Accelerating Business Action on Climate Change Adaptation

World Economic Forum (2023) | Retrofitting, Information, Technology

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At COP27, climate adaptation was elevated to a global priority, signaling a shift in urgency for both governments and businesses. While adaptation efforts have historically been led by public institutions and NGOs, the private sector is now facing mounting pressure to engage, driven by the accelerating impacts of climate change. Business involvement has been slow to develop due to a lack of understanding of physical climate risks, but that is now changing rapidly.

The business case for adaptation is compelling. Climate risks are already having an impact on performance, with leading companies reporting financial impacts equal to 10% of annual sales and 4% of market value. Concurrently, the adaptation economy offers considerable growth prospects, as demand for products and services that enhance climate resilience experiences significant surge. Businesses that act now can influence future operating environments and policy, positioni…