Businesses Warming Up to Reality as Climate Change Disrupts Operations
A recent survey by ACCA, a global professional body for accountants and leaders, has highlighted the alarming lack of preparedness among businesses and organizations in addressing weather-related disasters and climate change. The report, "Weathering the Storm: Building Resilience Against Climate Disruptions," reveals that only 20% of respondents identify climate-related risks across their operations, while a staggering 25% have no mechanisms in place to build resilience.
The survey was conducted among over 600 finance professionals worldwide and found that power outages were the top concern for organizations in Africa (54% of respondents), with supply chain breakdowns being a leading worry for North Americas (41%) and employees' health issues emerging as a significant risk area (39%).
The report's authors warn that climate change is no longer a distant threat but a harsh reality that businesses must adapt to. "Organizations must make climate adaptation a priority, not only to safeguard their operations but to protect the people and places at risk," said Md. Sajid Khan, Director – India at ACCA.
However, the survey reveals that few organizations are taking adequate measures to address this issue. Two-thirds of respondents do not invest enough to mitigate physical risks posed by climate change, with only 37% planning to increase spending on this area.
To build resilience, forward-thinking organizations need to proactively support remote workers with measures like power backups and health monitoring, as suggested by report author Emmeline Skelton, Head of Sustainability at ACCA. The survey highlights the importance of CFOs and finance teams in championing transparency in emissions targets and transition plans, which can help reduce carbon footprints and advance net-zero goals.
The report will be shared during the COP29 climate summit in Azerbaijan, along with toolkits for finance teams to build skills in resilience areas like scenario testing, crisis management planning, and business continuity planning.