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 Develop climate-resilient infrastructure. Reinforce and upgrade manufacturing facilities, research labs and distribution centres to withstand climate impacts. Introduce climate intelligence. Use science-backed climate intelligence to forecast climate risk and improve transparency and traceability to ensure robust supply chains during climate disruptions. Use big data and AI to predict disease outbreaks and manage healthcare resources more efficiently. Invest in renewable energy sources. Transition away from fossil fuels to reduce direct emissions and enhance energy security against climate-related disruptions.Boost innovation in emerging diseases. Increase R&D into emerging infectious diseases to develop vaccines and reduce the likelihood of outbreaks. Innovate in product development. Develop more heat-stable medications and packaging to ensure products reach remote locations without deteriorating. Improve cold-chain supply networks in low- and middle-income countries. Leverage digital health technologies. Expand the use of telemedicine and remote monitoring technologies to provide healthcare access in climate- affected regions.Incentivize suppliers to enhance climate resilience. Engage upstream and downstream partners in climate risk assessments. Co-develop adaptation and resilience strategies to strengthen the value cha in. Collaborate with governments to protect vulnerable populations. Ensure underserved populations have affordable access to essential medicines, particularly in regions most affected by the climate crisis. Support community resilience. Invest in public health campaigns to make people aware of the climate risks, helping to safeguard against potential patient surges. Extreme heat, droughts and wildfires lead to biodiversity loss, which compromises the discovery of new pharmaceuticals. Tropical cyclones and extreme heat cause power outages, which leads to disruptions to medical equipment and laboratories. Tropical cyclones lead to laboratory and clinical trial site closures, which extend R&D process timelines and increase costs.Tropical cyclones and wildfires damage manufacturing facilities and equipment resulting in business interruption and repair costs. Tropical cyclones and extreme heat cause power outages, disrupting manufacturing processes and plant operations. Water stress threatens drug production as it involves water- intensive processes to ensure product safety.Tropical cyclones and floods disrupt distribution networks, requiring repairs and extending downtime, leading to financial losses. Extreme heat disrupts the cold chain for safe storage and transportation, which can result in high wastage costs. Climate hazards create demand for medicines in new markets, requiring companies to ensure adequate resources and logisticsTropical cyclones and wildfires push healthcare systems to shift to emergency-focused, lower-margin products, reducing revenues. Tropical cyclones and floods disrupt delivery routes, causing delays in dispensing medications and higher logistics costs. Climate hazards place stress on healthcare systems, diverting resources away from sales and marketing activities.Drug discovery & researchManufacturing Distribution Dispensing Extreme heat Wildfire Tropical cyclone Coastal flooding Fluvial flooding Water stress Drought Business on the Edge: Building Industry Resilience to Climate Hazards 56