Organisational survival hinges on proactive climate risk assessment - CFOs and finance teams are key to steering this transformation
Businesses and other organisations are not prepared for weather-related disasters, with out-of-date business continuity plans failing to reflect the frequency of disruption of climate-related events, according to ACCA’s latest report Weathering the storm: building resilience against climate disruptions.
This new report paints a concerning picture of organisational preparedness, with only 20% of businesses and other organisations surveyed identifying climate-related risks across their operations. Even more troubling is that a mere 17% regularly rehearse their response to major disruptions, while 25% have no mechanisms in place to build resilience at all.
‘Spain's recent floods and intensifying hurricanes worldwide are harrowing reminders that climate change is not a distant threat; it’s reshaping lives and communities right now,’ said report author Emmeline Skelton, Head of Sustainability at ACCA. ‘Organisations must make climate adaptation a priority— not only to safeguard their operations but to protect the people and places at risk. Rising temperatures, more intense rainfall, and swelling sea levels make the evidence unmistakable: we must act now to build resilience and mitigate further harm.
‘The escalating environmental threats demand comprehensive preparation measures. Yet our survey reveals that climate adaptation planning is still not receiving the urgent attention it requires. It’s time for organisations to take decisive action to protect both their future and the communities they serve.’
However, resilience is not a priority for organisations with two-thirds of respondents not investing adequately to address the physical risks posed by climate change, and only 37% planning to increase spending in this area.
‘Organisations with a digital-first approach can’t overlook climate risks affecting their remote workforce,’ she added. ‘To ensure resilience, forward-thinking organisations need to proactively support remote workers with measures like power backups and health monitoring to stay prepared in an increasingly unpredictable climate.’...
more at ACCA
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