The Cost of Inaction 2024

Manage risks in the current business portfolioStep 2 Having adequately assessed relevant climate risks, companies can invest in adaptation and decarbonization to keep them under control. Invest in adaptation and resilience Companies need a comprehensive adaptation and resilience plan developed across three levels: –Strategic (e.g. shifting the business model to increase service revenue or reduce reliance on real estate) –Operational (e.g. creating backup logistics plans or installing flood barriers) –Financial (e.g. using insurance for risk transfer or setting budgets for risk retention) An operational adaptation and resilience plan typically includes investing in resilient infrastructure, systems and crisis protocols to ensure business continuity. Implementing predictive mechanisms and early warning systems also allows companies to respond dynamically, minimizing adverse effects. As part of a successful adaptation plan, companies should collaborate with local authorities to ensure efforts are compliant, appropriate and consistent with local adaptation planning. We regularly assess and enhance our protection measures like the construction of flood barriers and storm-proof buildings. We also cooperate with local authorities to ensure that our risk management strategies align with broader resilience efforts locally. Stefan Klebert, Chief Executive Officer, GEA Group These efforts and investments support the resilience of a business and secure competitive advantage over peers that may need to shut down production as a result of extreme events. The Cost of Inaction: A CEO Guide to Navigating Climate Risk 41