How climate resilience enhances business resilience
Beyond compliance and reputational matters, there are also effects on enterprises’ long-term viability
Climate resilience bolsters business resilience, as companies face increasing disruptive impacts due to climate change. In 2025, while 64% of respondents had climate transition plans, many showed no progress or regressed on previous commitments. Climate inaction could cost businesses 15% of their annualized revenue. However, only one-third of respondents assessed the financial impact of climate-related costs and inaction.
Despite progress in sustainability reporting and board-level oversight, gaps remain between commitment, disclosure, and execution. Companies often struggle with fragmented systems, inconsistent definitions, and limited visibility across value chains, particularly in areas like Scope 3 emissions and physical climate risk. Regulatory fragmentation adds complexity, as companies must respond to different disclosure requirements across markets.
To improve, companies should embed sustainability in core strategy, define how climate and sustainability affect growth and risk, and develop transition and resilience roadmaps with funding, ownership, and milestones. Operational practices must also become more forward-looking, using forward-looking scenarios and asset-level adaptation plans.
By treating sustainability as an enterprise-wide transformation, businesses can better manage climate-related risks and ensure long-term viability.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
