Business on the Edge 2024

Value chain implications of climate hazards Recommendations Avoid economic lossIncrease revenue, cost savings & sustainability Protect communities & ecosystems Enhance resilience Capitalize on opportunities Shape collaborative outcomes Integrate climate risks into planning and design. Conduct due diligence to identify climate-related vulnerabilities and prioritize investments. Incorporate resilient design principles and technologies. Integrate adaptation into maintenance regimes. Use resistant materials for structure reinforcement. Enhance communication and preparedness. Ensure that residents know how to shelter or evacuate during disasters. Use hazard maps, text alerts and evacuation routes. Develop alternative routes and renewable power systems for critical infrastructure. Use digital twins to simulate performance during disruptions.Develop green infrastructure projects, which minimize urban heat island effects and absorb rainwater to prevent flooding. Promote renewable energy integration. Invest in solar, wind and hydropower and energy storage solutions to ensure a stable energy supply for critical infrastructure. Develop smart transportation networks. Examples include electric vehicle infrastructure, intelligent traffic management systems and public transportation enhancements. Develop new expertise. Invest in training programmes and educational initiatives to develop new skills in climate- resilient infrastructure. Foster cross-sector coordination. Collaborate with energy, water and telecommunications sectors to identify interdependencies. Work with government agencies on policies that incentivize infrastructure retrofitting. Support environmental justice. Co-develop community infrastructure and ensure that climate resilience efforts, such as cooling centres or transportation routes, prioritize vulnerable populations and underserved areas. Address unique challenges and opportunities faced by developing countries through knowledge sharing, technical assistance and investment in climate-resilient infrastructure projects through multilateral development banks. Fluvial flooding Extreme heat Wildfire Tropical cyclone Coastal flooding Water stress DroughtWildfires and floods disrupt resources value chains, reducing the supply of crucial construction materials. Extreme heat and tropical cyclones reduce the performance of building materials and result in construction site damage or accidents. Tropical cyclones, floods & wildfires disrupt materials and equipment transportation, leading to supply chain and logistics delays.Wildfires, floods & tropical cyclones cause physical damage, leading to higher maintenance frequency and repair costs. Tropical cyclones lead to power outages and extreme heat causes increased energy demand and reduced energy efficiency. Extreme heat and droughts lead to soil subsidence, which reduces pavement and bridge integrity and weakens rail systems.Frequent wildfires, tropical cyclones & floods lead to higher insurance premiums, reduced coverage or retreat from risk- prone areas. Wildfires, tropical cyclones & floods drive lower funds availability and higher financing cost due to risk of default or insolvency. Tropical cyclones cause disruptions to transportation networks, resulting in increased financing needs for repairs and upgrades.Wildfires, tropical cyclones & floods amplify the risk that ageing infrastructure will be damaged or collapse, posing health risks. Wildfires, tropical cyclones & floods require safe handling of materials in hazard-prone areas, increasing waste management costs. Floods can cause contamination of waste disposal sites, resulting in higher clean- up costs and potential environmental penalties.Materials manufacturing & constructionUsage, maintenance & renovationInsurance & financing End-of-life Business on the Edge: Building Industry Resilience to Climate Hazards 54