Fixed asset losses per year as a proportion of EBITA under low and high emission scenarios, by industry (2035)FIGURE 7 Low emissons scenario High emissons scenario (additional losses)Utilities Telecommunications Travel Retail Agribusiness Media Infrastructure & transportation services Automotive Industrial equipment & machinery Chemicals Natural resources Food & beverages Software & platforms High-tech Energy Life sciences Non-food consumer goods20.7% 20.3% 20.2% 9.8% 8.9% 7.3% 6.9% 6.3% 6.0% 5.4% 5.2% 4.6% 4.3% 4.2% 2.9% 2.9% 2.0%23.6% 22.1% 21.6% 10.4% 9.5% 7.7% 7.3% 6.9% 6.2% 5.9% 5.8% 4.9% 4.7% 4.5% 3.4% 3.1% 2.1%Low High % EBITA Note: Industry average for 5,043 companies with available data; average EBITA 2021-2023. Sources: S&P Global Sustainable1, Accenture analysis. The scale and magnitude of fixed asset losses should concern business leaders. However, the World Economic Forum’s Alliance of CEO Climate Leaders highlights that companies that make adaptation and resilience investments report a very positive business case, ranging from $2 to $19 for every $1 invested across sectors.24 This prompts an important question as companies consider how fast to adapt: with rising climate hazards threatening to drive fixed asset losses and depress earnings, can they afford not to respond urgently and appropriately now? Moreover, this analysis paints an incomplete picture of the climate threats facing companies. For one thing, climate hazards pose risks to other areas of business activity such as the supply chain, employee well-being and consumer spending (see Chapter 3). Additionally, the data does not fully account for the increased frequency and severity of climate hazards as tipping points cascade. This report is accompanied by a series of Industry briefs that provide a more detailed view on the implications and recommendations for some of the most-impacted industries: utilities, telecommunications, travel, retail, agribusiness, media, infrastructure and transportation services. Business on the Edge: Building Industry Resilience to Climate Hazards 15

Business on the Edge 2024