A new report from the Association of Chartered Certified Accountants (ACCA) has revealed a concerning lack of preparedness among businesses and organisations for weather-related disasters, despite the increasing frequency of climate-related disruptions.
The report, titled “Weathering the storm: building resilience against climate disruptions,” found that only 20% of surveyed organisations have properly identified climate-related risks across their operations.
Even more alarming, just 17% regularly practice their response to major disruptions, while a quarter have no resilience-building mechanisms in place at all.
“Spain’s recent floods and intensifying hurricanes worldwide are harrowing reminders that climate change is not a distant threat; it’s reshaping lives and communities right now,” said Emmeline Skelton, Head of Sustainability at ACCA and author of the report.
The study, which analysed data from ACCA’s Global Economic Conditions Survey of over 600 finance professionals worldwide, revealed significant regional variations in climate-related challenges. In Africa, power outages emerged as the primary concern, affecting 54% of respondents. North American organisations reported supply chain disruptions (41%) and employee health issues (39%) as their main worries.
Despite these clear risks, the report highlights a significant investment gap in climate resilience. Two-thirds of organisations are not investing adequately to address physical risks posed by climate change, with only 37% planning to increase spending in this area.
The rise of remote work has added another layer of complexity to climate resilience planning. “Organisations with a digital-first approach can’t overlook climate risks affecting their remote workforce,” Skelton noted. She emphasised the need for proactive measures such as power backups and health monitoring systems to protect remote workers in an increasingly unpredictable climate.
The report emphasises the crucial role of CFOs and finance teams in building climate resilience through risk-based planning and sustainable business strategies. These professionals are identified as key players in advancing net-zero goals and ensuring transparency in emissions targets and transition plans.
ACCA plans to present these findings at the upcoming COP29 climate summit in Azerbaijan. The report includes practical resources for finance teams, including toolkits for scenario testing, crisis management planning, and business continuity plans, along with recommended actions for businesses and governments to address climate-related risks.
The findings underscore the urgent need for organisations to prioritise climate adaptation and resilience-building measures to protect both their operations and the communities they serve in an increasingly volatile climate landscape.
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