Business on the Edge 2024

Key recommendations and business enablers FIGURE 23 Avoid economic lossIncrease revenue, cost savings & sustainability Protect communities & ecosystems Enhance resilience Capitalize on opportunities Shape collaborative outcomes 1 Develop a process and partner ecosystem to understand and map exposure to climate hazard risk at an asset level (including IT and IoT estates). 2 Integrate site-specific continuity, crisis management and recovery planning to mitigate exposure to water stress and extreme weather events. 3 Address single points of failure by increasing service delivery and supply chain options. 4 Develop contingency plans and practices to maintain workforce well-being and productivity through periods of extreme heat.5 Understand long-term trends and evolve local propositions to capture adjustments in consumption preferences and emerging needs. 6 Pivot R&D to reinvent core products, services and infrastructure with new materials, formulations and circular business models. 7 Build climate smart portfolio strategies to capitalize on climate risk mitigation opportunities as a strategic advantage, alongside deep decarbonization.8 Work across the value chain with private, public and grassroots stakeholders to develop system value frameworks that elevate economic, environmental and social interdependencies, engaging in local advocacy and assistance programmes. 9 Collaborate across the value chain to realize breakthrough solutions, for instance: –Circular business models to recycle, reuse and reduce scarce resources and extend product life. –Productivity and regenerative practices to increase food yields per unit of land and water that mitigate extreme weather risk. –Shared industry data and technologies to build and implement early warning systems that identify and mitigate damage. –Public-private financial models to protect natural assets and communities they support. 10 Take responsibility for tackling biodiversity loss and promote nature- based solutions and business models that help reduce climate-related risks. Business enablers – Activate within 24 months Integrate climate change adaptation with net-zero transformation, and mainstream climate risk considerations into business decision-making Make it the responsibility of the entire C-suite to understand the double materiality challenge and to establish it as a foundational element of systemic enterprise risk management.Conduct a detailed audit of core capabilities and processes Ensure climate resilience and adaptation percolates to every level of the organization and its ecosystem partners.Master the non- financial data for ESG intelligence and strategic foresight to understand new risks and opportunities presented by the climate crisis Invest in the required skills, technology and responsible use of AI to accelerate insights, decision-making and portfolio reinvention.Tie climate risk into every capital maintenance and investment decision Build resilience criteria with cost-benefit analysis into every capital investment decision to taper stranded asset risk, while promoting socio- economic opportunity at local levels. Sponsor and integrate evolving scientific insight with commercial models Improve the quality of analysis and interpretation shaping strategic and operational decisions, to account for cascading exogenous shocks. Work in partnership with the scientific community to develop more useful insights into potential local impacts in key regions. Business on the Edge: Building Industry Resilience to Climate Hazards 46