A significant gap in climate preparedness looms over global businesses, with only 20% having identified climate-related risks.
- The recent report from ACCA highlights a widespread lack of resilience against climate disruptions, pointing to outdated continuity plans.
- An alarming 17% of organisations rehearse responses to major disruptions, while 25% have no resilience strategies.
- Environmental threats require urgent investment, yet two-thirds of respondents do not prioritise addressing physical risks.
- Finance professionals are seen as crucial in spearheading sustainable strategies and transparency in emissions targets.
Businesses across the globe face a troubling gap in climate preparedness, with merely 20% of entities having identified climate-related risks within their operations, according to the ACCA’s latest report. This lack of preparedness is evident in the out-of-date business continuity plans that fail to accommodate the increasingly frequent climate-related disruptions.
Alarmingly, only a small fraction of organisations regularly rehearse their responses to significant disruptions. A mere 17% engage in such practices, while 25% lack any mechanisms designed to foster resilience. This scenario paints a concerning picture of global unpreparedness in the face of environmental threats.
The report underscores an urgent need for organisations to invest in addressing the physical risks posed by climate change. However, two-thirds of survey respondents indicated a lack of investment in this area. Despite the evident threats posed by rising temperatures, intense rainfall, and swelling sea levels, climate adaptation has not been prioritised.
Finance professionals are pivotal in leading the charge towards sustainable business practices. By endorsing transparency in emissions targets and promoting risk-based planning, finance teams are instrumental in reducing carbon footprints and advancing net-zero objectives. Such efforts are essential in supporting an inclusive and climate-resilient future.
Skelton emphasises the necessity for forward-thinking organisations to adapt to the risks impacting their remote workforce. Effective measures such as power backups and health monitoring systems are vital in ensuring resilience for remote employees amidst a rapidly changing climate.
The ACCA highlights a critical need for immediate and strategic actions to improve climate resilience across global businesses.
