Climate resilience is the capacity to survive, adapt, and succeed in the face of climate change and its direct and indirect impacts. It also encompasses the ability to capitalize on strategic opportunities presented by the shift to a lower-carbon and resource-constrained economy.
For organizations, the conversation on climate change is shifting to considerations of impacts on corporate performance. Companies need to ask: How are direct and indirect climate risks impacting our organizational performance?
Climate risks aren’t simple. In terms of direct impacts side, shifting weather patterns and extreme weather are one of the biggest risks organizations face. Extreme weather events are having rising economic impacts on business assets and continuity. For example, In the US, Hurricane Harvey in 2017 alone caused over $180 BN in damages.
In terms of indirect impacts, companies are facing new pressures from multiple fronts: competitors, regulators, customers, investors, and even suppliers. This can be seen through customer demand for sustainable brands, a commitment to the 2015 Paris Agreement impacting supply chains, competitors capitalizing on low-carbon innovation, and investors’ focus on low-carbon assets.