Businesses face growing threats from extreme weather and climate change: damage to facilities, loss of water or power supplies, higher costs, and disruption of supply and distribution chains.
In a major report, Weathering the Storm: Building Business Resilience to Climate Change , C2ES provides a detailed snapshot of the state of resilience planning among a cross-section of global companies and outlines steps companies can take to better assess and manage their growing climate risks.
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The report includes a comprehensive review of resilience practices among S&P Global 100 Index companies and detailed case studies of six companies in diverse sectors: American Water , Bayer , The Hartford Group , National Grid , Rio Tinto and Weyerhaeuser . It also draws on input from a technical workshop with representatives of a wide range of industries.
- Ninety percent of S&P Global 100 Index companies identify extreme weather and climate change as current or future business risks.
- Almost two-thirds (62 percent) say they are experiencing climate change impacts now, or expect to in the coming decade.
- Companies are most concerned about the direct impacts of extreme weather on property, production and supplies, and indirect impacts on operational costs, such as higher prices for commodities or insurance.
- Most companies are managing these risks through existing business continuity and emergency management plans. Only a few have used climate-specific tools to comprehensively assess risks.
- Most companies (75 percent) also see new opportunities from a changing climate, including drought-resistant crops, storm-resistant building materials, and weather-related insurance products.
- Create a clearinghouse for reliable, up-to-date data and analytical tools. Companies need user-friendly, localized projections of climate changes and models that link projections to impacts that matter most.
- Invest in public infrastructure resilience. Roads, bridges, ports, and other public resources used to transport goods and services to market must withstand extreme weather and climate impacts.
- Consider resilience needs in regulation. Companies in regulated sectors, such as water, electricity, and insurance need regulators to be forward-looking and open to companies making the case for more spending
- Set up voluntary, public-private partnerships. Bring together government and business expertise to improve resilience planning.
C2ES would like to acknowledge Bank of America for its collaboration and generous financial support.