Businesses Scramble to Address Climate-Related Disruptions as ACCA Reveals Alarming Preparedness
A recent report by the Association of Chartered Certified Accountants (ACCA) has unveiled a concerning picture of organisational preparedness in the face of climate-related disasters, with many businesses and other organisations found wanting when it comes to adapting to the increasingly frequent and severe consequences of extreme weather events.
According to the report, titled "Weathering the storm: building resilience against climate disruptions", only 20% of companies and institutions surveyed identify climate-related risks across their operations, while a mere 17% regularly rehearse their response to major disruptions. Shockingly, 25% have no mechanisms in place to build resilience at all.
The report's findings are particularly disturbing given the recent examples of devastating floods in India, which are stark reminders that climate change is already reshaping lives and communities worldwide.
"Organisations must make climate adaptation a priority – not only to safeguard their operations but to protect the people and places at risk," warned Md. Sajid Khan, Director – India at ACCA. "Rising temperatures, more intense rainfall, and swelling sea levels make the evidence unmistakable: we must act now to build resilience and mitigate further harm."
Despite growing environmental threats, many organisations are not investing adequately to address climate-related risks. A staggering two-thirds of respondents reported that they were not investing enough to address physical risks, while only 37% plan to increase spending in this area.
However, forward-thinking businesses and finance professionals can take proactive steps to build resilience and mitigate harm. According to report author Emmeline Skelton, Head of Sustainability at ACCA, organisations with a digital-first approach must support remote workers with measures like power backups and health monitoring to cope with an increasingly unpredictable climate.
The report's findings are alarming, but ACCA has provided valuable toolkits for finance teams to build skills in resilience areas such as scenario testing, crisis management planning, and business continuity plans. The organisation will also be sharing its research and guidance on sustainability issues at the upcoming COP29 climate summit in Azerbaijan.
As the threat of climate-related disruptions continues to grow, it is more essential than ever for businesses to take decisive action to protect their future and the communities they serve.