Climate Adaptation Unlocking Value Chains with the Power of Technology 2025

Mobilize all stakeholders to maximize the impact of adaptation Collaboration is needed at every level. For example, a port authority aiming to safeguard its infrastructure from rising sea-levels must coordinate with local governments, shipping companies, financial investors and adaptation solution providers, transcending individual value chains. In planning and executing adaptation strategies, organizations must engage all stakeholders within their ecosystem. This coordination is especially critical in areas facing localized physical risks. Financial institutions, such as banks, insurers and investors facilitate investments and influence the system. Policy-makers, from national and local governments to multilateral institutions, provide financial incentives and set regulatory boundaries. Shaping agents, including NGOs, academia, public influencers and tech innovators help drive the transformation agenda by influencing behaviour. Local communities, including employees, citizens and Indigenous groups, must also be involved, as their insights are crucial to find a just and inclusive path forward, nourished by local wisdom and ancestral knowledge. It’s crucial to map priority value chains onto regions most vulnerable to climate change – areas that face the highest risks, like rising sea levels, fires and floods. These regions become ‘hubs of vulnerability’, where multiple value chains converge, requiring concentrated adaptation efforts to mitigate widespread impact across industries. Gail Whiteman, Hoffmann Impact Professor for Accelerating Action on Nature & Climate, University of ExeterGeographical diversification doesn’t mean climate diversification. Extreme weather events in one region, such as Australia, can have far-reaching impacts on supply chains in the EU and US. This is the butterfly effect. Himanshu Gupta, Chief Executive Officer, ClimateAIBy working together, companies can make adaptation more effective. Constanza Gómez, CEO of C-Minds, explains: “There is a higher probability of sustained success and thus sustained economic growth for larger corporations if the complete chain, including the smaller companies, are aligned with practices that will make them resilient to changes and aligned with new regulations. Economic stability depends on ensuring that sources of input are resilient to climate effects and comply with growing ESG measures.” Building resilience along a value chain does require investment, but when an organization and its stakeholders jointly deploy adaptation measures, their costs fall while everyone’s benefits increase. Climate Adaptation: Unlocking Value Chains with the Power of Technology 9