Last month, I wrote about a shift in sustainability language. Increasingly, we’re hearing the word “resilience” used in relation to corporate ESG. Now, new survey data provides insight into the conditions driving that shift. The economy is no longer bracing for the climate crisis; it’s facing the opening salvos of climate change. New research from Sweep and Capgemeni surveyed 1,000 senior leaders across five regions in North America and Europe. They found that the vast majority are already registering some climate-related loss:
“Disruption is being driven by both physical and transition risks, which are accelerating simultaneously. Organisations therefore face greater exposure today.
- 94% have experienced financial loss from climate-related supply chain disruption in the past 24 months
- 30% have absorbed losses above $1 million as a direct result
- 85% of organisations agree they must transform for the low-carbon economy
- 86% see transformation as a growth opportunity rather than an expense”
Disruptions are now commonplace enough to be measurable on the balance sheet, and those figures are only going to rise as the global climate becomes less stable. The role of sustainability appears increasingly twofold. First, the resilience element. This is the management of climate-related risks themselves. Second, supporting the ongoing transformation to the low-carbon economy. This piece is equally crucial, though less directly measurable. Climate-related risks can be managed and mitigated through resilience planning, but they cannot be completely avoided. If we’re going to have a functioning global economy in fifty years, then we have to prioritize transition now. However, the survey also finds that leaders don’t have the data they need to make informed decisions:
- 79% say their sustainability data is insufficient to inform strategy today
- 36% strongly agree their sustainability data is insufficient, up from 17% in 2024
- 51% average audit-readiness across organisations
To combat climate-related loss and build resilient businesses, leadership needs actionable and robust data. Otherwise, we’re flying blind, and that makes it difficult to adapt to the changing world.
Our members can learn more about gathering ESG data here.
