Climate change is no longer a distant threat—it’s impacting businesses today. In this blog, Dave Wagner shares why resilience is now a core leadership priority. He offers practical steps organizations can take to adapt, protect their people, and strengthen their operations against climate risks.
Climate change has transitioned from being a distant threat to a pressing reality, affecting businesses and communities worldwide. From hurricanes and wildfires to heatwaves and flooding, extreme weather events are increasing in both frequency and intensity. Organizations must now ask themselves a critical question: are we prepared to withstand the impacts of climate change?
Building resilience isn’t just about surviving a crisis—it’s about thriving in a world of uncertainty. Organizations that take proactive steps to address climate risks can safeguard their operations, protect their people, and maintain trust with stakeholders. Leadership plays a pivotal role in driving this transformation, ensuring resilience becomes a core part of the organizational strategy.
Why climate resilience is critical
The need for climate resilience is clear. According to the United Nations, economic losses from climate-related disasters exceeded $3 trillion globally between 2000 and 2019. The physical risks posed by climate change—from damaged infrastructure to disrupted supply chains—are undeniable. However, there are also reputational and regulatory risks to consider.
Stakeholders, including investors, customers, and employees, increasingly expect organizations to take climate change seriously. Regulatory bodies around the world are introducing new mandates requiring businesses to assess and disclose their climate risks. For example, the EU’s Corporate Sustainability Reporting Directive (CSRD) will require detailed climate reporting, pushing businesses to prioritize resilience.
Organizations that fail to act risk falling behind—not just operationally, but reputationally as well. By contrast, those that lead on climate resilience demonstrate their commitment to sustainability, earning trust and positioning themselves as forward-thinking leaders.
Key strategies for building climate resilience
Building climate resilience requires a multifaceted approach, integrating risk management, technology, and collaboration. Here are three strategies every organization should consider:
1. Conduct comprehensive risk assessments
Climate risks vary widely depending on geography, industry, and operations. A manufacturing plant located near a coast faces different risks than a tech company headquartered in a city prone to heatwaves. Organizations must identify and prioritize their specific vulnerabilities.
Risk assessments should extend beyond physical risks to include financial and reputational impacts. For instance, how would a prolonged drought affect supply chains, and what measures can mitigate those impacts? These assessments provide the foundation for informed decision-making and proactive planning.
2. Embrace scenario planning
Scenario planning allows organizations to prepare for multiple potential futures. By considering different climate scenarios, businesses can evaluate how rising temperatures, sea-level rise, or shifting weather patterns might impact operations.
For example, a retail company might simulate how a Category 5 hurricane would disrupt its logistics network and then develop contingency plans to maintain continuity. These exercises not only highlight vulnerabilities but also build organizational confidence in handling disruptions.
3. Invest in resilient infrastructure and technology
Technology plays a critical role in building resilience. From early-warning systems that monitor extreme weather to AI-powered analytics that predict supply chain disruptions, advanced tools can help organizations stay ahead of climate risks. Infrastructure investments are equally important. For example, flood-resistant buildings or renewable energy systems that ensure power continuity during outages can significantly reduce vulnerabilities.
The key is to treat these investments not as costs but as long-term safeguards. Resilient infrastructure protects assets and operations while enhancing the organization’s ability to adapt to future challenges.
The role of leadership in driving resilience
Resilience starts at the top. Leaders have the unique responsibility to ensure climate resilience is prioritized across their organizations. This involves fostering a culture that values sustainability, innovation, and adaptability.
1. Embedding resilience into strategy
Climate resilience should not be viewed as a standalone initiative—it must be integrated into the organization’s overarching strategy. Leaders can set clear goals, allocate resources, and measure progress to ensure resilience becomes part of the organization’s DNA. For example, setting a target to reduce greenhouse gas emissions by a specific percentage demonstrates a tangible commitment to sustainability.
2. Championing cross-departmental collaboration
Climate resilience is not the responsibility of one team or department. It requires collaboration across functions, from operations and IT to HR and communications. Leaders can break down silos, encouraging teams to work together on resilience initiatives. For example, IT teams can partner with operations to implement data-driven tools that monitor risks in real time.
3. Engaging stakeholders
Stakeholder trust is essential for organizational resilience. Leaders must communicate transparently about the organization’s climate risks, plans, and progress. This includes sharing updates with investors, employees, and customers, as well as engaging in meaningful dialogue to address their concerns and priorities.
Case studies: Resilience in action
Retail sector
A global retail chain facing increased flooding risks revamped its supply chain strategy. By conducting detailed risk assessments and integrating real-time weather analytics, the company identified vulnerabilities in its logistics network. It then established alternative transportation routes and pre-positioned inventory in safer locations. As a result, the company reduced delivery delays by 40% during extreme weather events.
Manufacturing sector
A manufacturing firm located in a hurricane-prone region invested in renewable energy solutions, including onsite solar panels and battery storage. When a major hurricane caused widespread power outages, the facility remained operational, minimizing downtime and ensuring employee safety. This proactive investment not only protected operations but also reinforced the company’s reputation for resilience.
The business case for resilience
Far from being a cost center, resilience is a strategic advantage. Research shows that companies that prioritize resilience often outperform their peers:
- Harvard Business Review found that resilient companies saw 18% higher shareholder returns over a decade.
- Edelman’s Trust Barometer reported that 64% of consumers are more likely to trust and stay loyal to brands that prioritize resilience and sustainability.
In addition to financial benefits, resilience also drives employee engagement and retention. People want to work for organizations that take their safety and well-being seriously.
Looking ahead: The future of climate resilience
As climate risks continue to escalate, the importance of resilience will only grow. Organizations that invest in resilience today will be better equipped to navigate the uncertainties of tomorrow. This isn’t just about protecting assets—it’s about safeguarding people, maintaining trust, and seizing opportunities in a rapidly changing world.
The path to resilience requires vision, collaboration, and commitment. By prioritizing climate resilience, organizations can turn challenges into opportunities, building a foundation for sustainable growth and long-term success.
Summary
Resilience isn’t a one-time fix—it’s an ongoing commitment. As Dave highlights, businesses that prioritize climate resilience can better withstand disruptions and gain a long-term competitive edge. Start assessing your organization’s climate readiness today and begin building a future that’s prepared for anything.