Businesses and other organisations are not prepared for weather-related disasters, with out-of-date business continuity plans failing to reflect the frequency of disruption of climate-related events, according to ACCA’s latest report Weathering the storm: building resilience against climate disruptions.
This new report paints a concerning picture of organisational preparedness, with only 20% of businesses and other organisations surveyed identifying climate-related risks across their operations. Even more troubling is that a mere 17% regularly rehearse their response to major disruptions, while 25% have no mechanisms in place to build resilience at all.
‘The recent floods across India from Assam and Tamil Nadu to Bengaluru are harrowing reminders that climate change is not a distant threat; it’s reshaping our lives and our communities right now,’ said Md. Sajid Khan, Director – India at ACCA. ‘Organisations must make climate adaptation a priority— not only to safeguard their operations but to protect the people and places at risk. Rising temperatures, more intense rainfall, and swelling sea levels make the evidence unmistakable: we must act now to build resilience and mitigate further harm.
‘The escalating environmental threats demand comprehensive preparation measures. Yet our survey reveals that climate adaptation planning is still not receiving the urgent attention it requires. It’s time for organisations to take decisive action to protect both their future and the communities they serve.’
However, resilience is not a priority for organisations with two-thirds of respondents not investing adequately to address the physical risks posed by climate change, and only 37% planning to increase spending in this area.
‘Organisations with a digital-first approach can’t overlook climate risks affecting their remote workforce,’ report author Emmeline Skelton, Head of Sustainability at ACCA. ‘To ensure resilience, forward-thinking organisations need to proactively support remote workers with measures like power backups and health monitoring to stay prepared in an increasingly unpredictable climate.’
Data for the report came from ACCA Global Economic Conditions Survey of over 600 finance professionals around the world and illustrates these concerns vividly. Power outages topped the list of climate-related disruptions in Africa (54% of respondents), while North America’s leading worries included supply chain breakdowns (41%) and employee health issues (39%).
CFOs and finance teams are essential to building climate resilience through risk-based planning and sustainable business strategies. By championing transparency in emissions targets and transition plans, finance professionals play a critical role in reducing carbon footprints and advancing net-zero goals, ultimately supporting a fair, inclusive, and climate-resilient future.
ACCA will be sharing the findings of this report, and other research and guidance it has produced on a range of sustainability issues, at the COP29 climate summit in Azerbaijan.
The report includes tool kits for finance teams to build skills in resilience in areas of scenario testing, crisis management planning and business continuity plans. It also lists key actions business and governments must take to build resilience and address climate-related risks.
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