The Resilience Opportunity Unlocking Climate Resilience through Public Private Collaboration 2025

Real-world examples across sectors highlight how these archetypes take shape in practice: –In Southern California, a leading food and beverage company partnered with a regional water authority to co-invest in groundwater replenishment infrastructure, demonstrating archetype 1 in Archetype example 1. –A global food and beverage company partnered with smallholder farmers in West Africa to implement climate-smart agricultural practices to enhance both crop resilience and supply chain stability, showing the viability of archetype 2 in Archetype example 2. –In the northern US, a private consortium led the design, financing and operation of a climate-resilient river diversion project under a performance-based contract with public authorities, exemplifying archetype 3 through Archetype example 3. –Archetype 4 is increasingly observed in climate adaptation and resilience project development. In Chapter 4, two case studies are featured, thoroughly illustrating how a climate resilience initiative could integrate and monetize the co- benefits to attract private-sector investment. –In a major Asian city, an urban stream restoration project initiated by the public sector significantly increased surrounding property values and commercial activity, illustrating the possibility of archetype 5 from Archetype example 4. In addition, cities and states are evaluating the possibility of redeveloping flood- prone areas with climate resilience features to enable private sector land development. –Archetype 6 is still nascent and in the early stage of development, with few mature examples but several pilots under way. ABM, led by the African Development Bank,15 is one of the most notable, aiming to create verifiable outcomes (i.e. CABs) to attract private finance into community- scale adaptation and resilience projects. Early pilots, such as climate-resilient cocoa farming in Côte d’Ivoire, demonstrate how private actors can engage where climate resilience yields widespread but indirect economic benefits. These initiatives offer a glimpse into future models where businesses can support systemic resilience while unlocking new impact-aligned capital flows. Together, these cases demonstrate how private actors can reduce shared risks, deliver core climate adaptation and resilience services and enhance long-term asset performance through tailored collaboration models. Cities and states are evaluating the possibility of redeveloping flood- prone areas with climate resilience features to enable private sector land development. ARCHETYPE EXAMPLE 1 Co-investing in urban water resilience infrastructure A leading food and beverage company partnered with a regional water authority in Southern California to co-invest in groundwater replenishment infrastructure. The collaboration supported the construction of an inland injection well aimed at enhancing aquifer sustainability and long-term water security for both industrial operations and the broader community. Background and context Recurring droughts, declining groundwater levels and increasing reliance on imported water sources have placed pressure on both public water systems and industrial water users across Southern California. Recognizing the critical role that reliable local water supplies play in sustaining production operations, the beverage company sought to strengthen its long-term water security in key risk regions. The regional water authority, facing infrastructure financing gaps, welcomed the opportunity to partner with a private-sector stakeholder with shared water dependency and aligned sustainability goals. Solutions deployed The company provided a multi-million-dollar grant to support the design and construction of a pilot inland injection well at an advanced treatment facility. The project aimed to capture and inject treated water into a local aquifer, enhancing its recharge capacity and drought buffer. Delivered in collaboration with engineering partners, the project represents one of the region’s first PPPs in groundwater resilience infrastructure. Impact The injection well project enhanced the region’s ability to replenish aquifers and maintain its water supply during prolonged dry periods. The company strengthened its water security in a critical operating region while aligning with broader sustainability and resilience commitments. For the public partner, private capital enabled faster project delivery, de-risked implementation and expanded technical collaboration. The initiative has since been recognized by water industry associations as a model for private-sector engagement in public climate resilience infrastructure, helping to bridge resource gaps while delivering long-term resilience benefits to both industry and communities. Source: PepsiCo. (2022, 7 January). PepsiCo Beverages North America Announces $1.5 Million Partnership with Water Replenishment District of Southern California to Help Protect the State’s Most Used Basins [Press release]; Brown and Caldwell. (2022, 23 August). PepsiCo and partners to discuss collaborative water replenishment programs at World Water Week [Press release]. The Resilience Opportunity: Unlocking Climate Resilience through Public-Private Collaboration 13