Value chain implications of climate hazards Tropical cyclones and extreme heat cause power outages and physical damage, causing downtime that results in lower productivity and financial losses. Increased frequency and intensity of tropical cyclones and floods leads to infrastructure damage and logistics disruptions. Climate hazards interrupt the supply of critical components sourced or assembled in vulnerable regions, delaying production timelines and limiting product availability.Tropical cyclones and floods damage transmission towers, cables and other vital infrastructure resulting in immediate repair costs. Extreme heat leads to increased energy consumption for cooling systems of telecom towers and data centres, raising operational costs. Drought conditions affect the structural integrity of cables and underground wiring if soil becomes too dry and shifts, increasing the risk of cable damage or disconnections.Extreme heat disrupts data centre cooling systems, causing power outages, equipment failures and connectivity issues, which affects service delivery and customer satisfaction. Smoke and ash from wildfires can scatter or absorb signals, especially in high-frequency bands, leading to reduced signal strength, coverage and increased latency. Climate hazards lead to inconsistent service delivery, which impairs usage and could lead to penalties or compensation claims from affected customers.Telecom equipment manufacturingInfrastructure operations & maintenenceService provisioning Recommendations Avoid economic lossIncrease revenue, cost savings & sustainability Protect communities & ecosystems Enhance resilience Capitalize on opportunities Shape collaborative outcomes Conduct comprehensive risk assessments. This includes identifying and evaluating climate risks to fixed assets by location; mapping supply chain vulnerabilities and understanding disruption potential; and estimating likely losses to company infrastructure and supply chains due to climate hazards. Diversify network pathways. Ensure back-up equipment and alternative routes for data transmission at critical locations to maintain connectivity when components fail due to extreme weather events.Develop tech-powered solutions. Leverage AI and other emerging tech to create products and services tailored to climate-related challenges; for example, early warning systems, remote monitoring, telehealth, real-time alerts, satellite mobile telephony and remote working support. Strengthen infrastructure. Upgrade infrastructure by climate-proofing above-ground transmission components – such as masts, antennas and overhead wires – to meet growing demand for connectivity even as climatic events increase in severity. Engage with stakeholders. Work with customers, regulators and others to understand different climate risk perspectives. Collaborate with local governments and utility companies. Enhance the resilience of key infrastructure in climate-impacted areas. Develop monitoring capabilities. Use technology to improve climate monitoring in vulnerable regions. Collaborate with industry partners. Share cross-sector resources and expertise to improve overall disaster preparedness. Invest in shared infrastructure to boost connectivity in remote and underserved areas.Fluvial flooding Extreme heat Wildfire Tropical cyclone Coastal flooding Water stress Drought Business on the Edge: Building Industry Resilience to Climate Hazards 58

Business on the Edge 2024