The Cost of Inaction 2024

Foreword Climate risks are no longer distant threats – they are materializing today, with impacts already felt across industries and regions. Companies and societies must now confront a new reality: the world we operate in today will look quite different tomorrow. Last year, we called for systemic global change to combat the climate challenge. This year, we focus on something equally critical: how corporate leaders should step up to manage climate-related risks and seize opportunities as we navigate this complex landscape. Climate inaction comes at a cost, even for businesses. The companies that fail to act could face substantial operational, financial and reputational risks in the near term, while early movers are already realizing tangible benefits from adaptation and decarbonization. For those who take bold steps, there is a path to sustained success. This report is a call to action for CEOs to redefine their approach to climate risks and seize climate- smart opportunities. Climate leadership is not about avoiding risks – it is about building resilience for businesses and societies and unlocking value in a transforming world. Businesses face intensifying physical risks and transition risks that will likely reshape industries, but within these challenges lies the potential for growth, innovation and competitive advantage to shape a growing climate adaptation market. Featuring innovative case studies and comprehensive frameworks for managing climate risks, this report equips CEOs and their companies with a blueprint to take decisive steps towards climate transformation, ensuring resilience, innovation and long-term success. The World Economic Forum’s Business on the Edge: Building Industry Resilience to Climate Hazards further explores how resilience strategies can be embedded across the C-suite. Now is the time for business leaders to act boldly and decisively. The decisions made today will not only shape the future of individual businesses but will also determine the trajectory of the global economy and the future of our planet for decades to come.Patrick Herhold Managing Director & Senior Partner, Boston Consulting GroupPim Valdre Head, Climate Action, World Economic Forum The Cost of Inaction: A CEO Guide to Navigating Climate RiskDecember 2024 The Cost of Inaction: A CEO Guide to Navigating Climate Risk 3