Climate Adaptation Unlocking Value Chains with the Power of Technology 2025

Follow the adaptation cycle using technology Frontier technologies, such as AI, help organizations adapt to climate risks in more ways than one, through anticipating impacts, responding swiftly and building long-term resilience. If used simultaneously, these technologies amplify each others’ impact and allow smart executive decision-making by enabling standardized communications, risk measurement and data sharing. As described in the World Economic Forum’s January 2024 publication, Innovation and Adaptation in the Climate Crisis: Technology for the New Normal,18 technology has become central to building resilience, propelling innovation and creating new capabilities for leaders and communities. Advanced technologies, such as the internet of things (IoT), drones and satellites, all equipped with AI, have emerged as critical tools for climate adaptation. They can be used independently or together and provide companies with capabilities that extend from predictive decision-making to modifying behaviour. Business leaders can leverage these technological capabilities to address the three stages of the adaptation cycle: –Comprehending risks and opportunities. AI, Earth observation (EO), IoT and drones have transformed how leaders gather, process and analyse information. These technologies provide intelligence on how the Earth is changing at the planetary level and how companies and communities will feel the impacts. –Building resilience against future impacts. AI has built resilience into critical infrastructure, such as flood management systems, through optimization and real time maintenance. EO and IoT have brought a new degree of precision to resilience tools such as early-warning systems. –Responding when climate impacts hit. EO, along with drones, can provide a view of hard- to-reach areas in the aftermath of an extreme event. Drones can be used to make deliveries of emergency aid as well as support search and rescue operations, especially since their AI capabilities improve situational awareness. Data-driven insights are the foundation of successful climate adaptation strategies. Better access to climate and value chain data ensures more efficient planning, targeted resilience efforts and faster adaptation when risks materialize. Leaders must collaborate to ensure data and technology accessibility and then act on it to drive meaningful change. Adaptation is first an information problem, because leaders have to understand the forces of change to design solutions. Andrew Zolli, Planet Labs Frontier technologies are powering climate adaptation efforts FIGURE 5 Advanced technologies are entering the mainstream… Artificial intelligence (AI) Drones Earth observation (EO) Advanced computing Inter net of things (IoT) Augmented and virtual reality (AR/VR) 2 31 E.g. AI-power ed climate & weather models E.g. supply chain optimization functions E.g. advanced early-war ning systems…which power climate adaptation efforts1 Buildresilience Adaptation cycleagainstfutureimpacts whenimpactshitResponddynamicallyandopportunities 2 3Comprehendrisks 1…working in concert to deliver key capabilities… Gather , complete and process data Strengthen planning & decision-making Optimize processes in real time Power discovery processes Nudge adaptive and risk- reducing behaviour Source: World Economic Forum. (2024). Innovation and Adaptation in the Climate Crisis: Technology for the New Normal.