Business on the Edge 2024

Images: Getty Images, Unsplash Disclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2024 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.Contents Foreword 3 Executive summary 5 1 The nature and climate crisis will hit fixed assets and threaten profits 7 1.1 Climate hazards are forecast to increase fixed asset losses 10 1.2 Extreme heat is the most potent climate hazard affecting 11 fixed assets across all regions 1.3 Telecommunications, utilities and energy companies face 13 steepest fixed asset losses in next decade 1.4 Climate-driven fixed asset losses pose a growing threat 14 to corporate profitability 1.5 Utilities, travel and telecommunications sectors face the 14 highest potential earnings shocks 2 Earth systems on the brink of tipping beyond the point of no return 16 2.1 Our planet’s life-support systems are severely threatened 17 2.2 Five Earth systems are at imminent risk of tipping today 17 2.3 Over 20 other Earth systems could be destabilized 24 2.4 Economic models fail to encompass the full scope 24 of Earth system tipping point risks 3 How climate hazards threaten socio-economic systems 25 3.1 Five socio-economic systems: building blocks 26 of a prosperous and inclusive world 3.2 Agriculture, food and beverages socio-economic system 27 3.3 Built environment socio-economic system 30 3.4 Technology socio-economic system 33 3.5 Health and well-being socio-economic system 36 3.6 Financial services socio-economic system 40 Conclusion and recommendations 45 Annexes 48 A1 Industry briefs 48 A2 Fixed asset loss quantification method 63 Contributors 67 Endnotes 70 Business on the Edge: Building Industry Resilience to Climate Hazards 2