· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on The World Economic Forum or enjoy below:
🗞️ Driving the news: Climate resilience is no longer a future consideration—it's a present-day business imperative
• As the impacts of climate change escalate, from extreme weather to supply chain disruptions, the market for resilience solutions is surging
• Private investment in this sector is growing by over 30% annually in Europe, and experts now value the global market for climate adaptation at over $1 trillion, expected to quadruple by 2050
🔭 The context: Historically, climate adaptation was seen as the government’s responsibility, with businesses focusing mainly on mitigation and emissions reductions
• However, climate-driven risks—including heat-related productivity losses, asset degradation, and rising insurance costs—are now affecting business continuity and profitability across all sectors, from agriculture to telecoms
• Even companies in advanced economies face rising costs, with S&P Global 1200 firms projected to incur $1.2 trillion in annual physical climate-related losses by 2050
🌍 Why it matters for the planet: Investing in climate resilience reduces systemic vulnerabilities while delivering high financial returns—studies show a $2–$19 return for every dollar invested
• This includes investments in heat-resistant infrastructure, early warning systems, and sustainable agriculture
• Furthermore, many adaptation strategies also yield mitigation co-benefits, such as nature-based solutions that restore ecosystems while buffering climate impacts
• The transition to climate-resilient business models is crucial for both corporate survival and planetary health
⏭️ What's next: Forward-looking companies are embedding resilience into their core strategy, broadening leadership responsibility and in some cases creating new roles such as Chief Resilience Officers
• Venture capital in the adaptation space is outperforming the broader market, with strong investor interest in scalable solutions like climate risk analytics, drought-resistant crops, and resilient supply chains
• As the climate crisis deepens, firms that act early will secure competitive and financial advantages in a rapidly evolving market
💬 One quote: “Mitigation can drive innovation and reduce long-term costs; climate adaptation can help ensure operational continuity and open new market opportunities.” – Dr Sarah Kapnick, Global Head of Climate Advisory, JPMorgan
📈 One stat: In 2024, natural disasters caused $320 billion in economic losses and over $100 billion in insured damages, raising property insurance premiums by 10–20% annually
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