Only 20% of businesses prepared for climate-related disasters, ACCA says

Only 20% of businesses and other organisations surveyed identified climate-related risks across their operations, ACCA has revealed. According to the latest report from the accounting body, “Weathering the storm: building resilience against climate disruptions”, businesses and other organisations are not prepared for weather-related disasters, with out-of-date business continuity plans failing to reflect the frequency of disruption of climate-related events. Meanwhile, a “mere” 17% regularly rehearse their response to major disruptions, while 25% have no mechanisms in place to build resilience at all. Emmeline Skelton, report author and head of sustainability at ACCA, said: “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. ACCA argues that CFOs and finance teams are “essential” to building climate resilience through risk-based planning and sustainable business strategies. In addition, 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. Data for the report came from ACCA Global Economic Conditions Survey of over 600 finance professionals around the world. 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%). Skelton added: “Organisations with a digital-first approach can’t overlook climate risks affecting their remote workforce. 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.”