Climate Adaptation Unlocking Value Chains with the Power of Technology 2025

The challenges of climate change are no longer conceptual. The immediate and cascading impacts of extreme weather events and the economic and supply chain disruptions they cause are tangible threats. The question before business leaders is no longer whether climate change will disrupt their organizations, but how best to anticipate and prepare for the climate crisis that is occurring now and will only worsen. To enable a resilient future, business leaders must take the following steps to set up collaboration platforms for adaptation in their value chain (see Figure 12). Six actions to set up value chain-wide collaboration platforms FIGURE 12 Source: BCG analysis. Six actions to set up value chain-wide collaboration platforms C ome together Engage on climate adaptation by creating or joining a forum within your value chain.1Align under a common North Star Define value at stake to create a shar ed purpose for adaptation between value chain stakeholders.2 Set clear standar ds Standar dize adaptation with a common language and metrics shar ed across the value chain.3 Invest in tech foundations Invest in innovation and infrastructur e to develop and host data insights and open technologies.5Deploy locally and scale-up Involve local communities and stakeholders to scale-up adaptation solutions.6 Unlock and shar e data Align on a secur e data-exchange protocol with your value chain.4 Come together –Engage on climate adaptation by creating or joining a forum within your value chain. –Create a new forum or initiative within your value chain to address climate adaptation or actively participate in existing initiatives to scale-up your adaptation efforts. –Encourage collaboration by engaging other companies, governments and innovators across your value chain to join and co-develop scalable adaptation solutions. –Hold meaningful conversations about the nuance behind design of these systems, including who benefits, who may be excluded and potential intended and unintended consequences.Align under a common North Star –Define value at stake to create a shared purpose for adaptation between value chain stakeholders. –Measure your exposure to climate risks under various temperature scenarios and their impact on your assets, employees, operations and supply chain. –Inspire collective action by uniting all stakeholders – governments, business and communities – around shared climate goals to drive investment, responsibility and lasting impact. –Position your organization as a climate frontrunner, leading by example and charting the path for others to follow, while strengthening your brand and attracting purpose-driven talent. 1 2 Climate Adaptation: Unlocking Value Chains with the Power of Technology 35