Not surprisingly, there is already a sizeable market to address these risks, standing at $1.1 trillion today and expected to grow rapidly (see Figure 1).49 Proven and practical solutions exist, with multiple sub-sectors reaching multi-billion-dollar markets, double-digit growth rates and attractive margins. Solutions such as waterproofing materials, flood diversion products, green roofs, advanced metering infrastructure and catastrophe risk analytics are already commercially viable and widely deployed. Meanwhile, early-stage solutions are gaining traction, especially in areas such as flood defence, immersion cooling, leak detection and microgrids for data centres. These technologies are being increasingly integrated into urban planning and infrastructure projects. Solutions at even earlier stages of development or deployment also show future potential. Examples include climate analytics, nanoparticles for heat-reflective windows, self-healing concrete, high-resolution weather forecasting, scenario-based climate modelling and localized risk analytics. Rising climate risks will catalyse new markets. In the years ahead, governments, corporations and municipalities will put resilience at the centre of their agendas to safeguard communities and economies. As climate events intensify, markets will expand into new geographies, much like wildfire management, which in just two years has rapidly grown in Europe following major fires in Greece and Portugal.50 The next wave of innovation is already taking shape, for example: Urban water management solutions are evolving to deliver more integrated, nature-based systems in response to the uneven distribution of precipitation (from torrential downpours and flash floods to prolonged dry spells and droughts).51 Advances in climate analytics, from AI-driven forecasting to satellite-enabled monitoring, are laying the foundation for predictive adaptation, giving governments, businesses and communities the foresight to act before climate disasters.52,53 In agriculture, breakthroughs in climate- resilient seeds are expected to accelerate, protecting food systems in regions most exposed to drought and heat.54 In construction, new generations of materials designed to withstand floods and extreme temperatures are emerging.55 The pace of innovation will only intensify. In a world that continues to warm, entirely new solutions – smarter, faster and more targeted – will appear, including some that cannot yet be imagined today. Green markets are no longer emerging; they are accelerating. Demand for low- carbon technologies, sustainable materials and climate-smart solutions is growing across every sector. The companies that respond now will be the ones that define the next wave of industrial and economic leadership. Feike Sijbesma, Founder and Co-Chair, Alliance of CEO Climate Leaders; Chair, Supervisory Board Royal Philips Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 23

Already a Multi-Trillion-Dollar Market 2025