Businesses increasingly understand the importance of climate risk management, but many organisations continue to face challenges in converting awareness into effective resilience strategies, according to a report from Zurich Insurance.
The report highlights that companies are becoming more aware of the financial and operational impacts of climate-related events. However, barriers such as limited resources, lack of internal expertise and difficulties in implementing adaptation measures continue to slow progress.
Climate risks, including extreme weather events, flooding, rising temperatures and natural catastrophes, are increasingly affecting businesses through property damage, supply chain disruptions, operational downtime and higher costs.
While many organisations have started assessing their exposure to climate risks, the report indicates that developing practical resilience plans remains challenging. Companies often struggle to identify priority actions, allocate investment and integrate climate considerations into broader business strategies.
Zurich noted that smaller businesses may face greater difficulties because they often lack dedicated risk management teams, financial resources and access to specialised expertise required for climate adaptation.
The report emphasises the importance of moving from risk awareness to proactive resilience planning. Businesses can strengthen their preparedness through measures such as scenario analysis, climate risk assessments, infrastructure improvements, business continuity planning and stronger supply chain management.
Insurance also has an important role in supporting climate resilience. Beyond providing financial protection after losses occur, insurers can help businesses identify vulnerabilities, improve risk prevention measures and develop strategies to reduce potential impacts.
As climate-related losses continue to increase globally, organisations that integrate climate risk into strategic decision-making may be better positioned to protect assets, maintain operations and manage future uncertainties.
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