In 2026, climate change is no longer a distant threat. Scientists and advocates have been raising the alarm for decades, and companies are now experiencing climate impacts directly within their operations and supplychain. Climate change is actively reshaping markets, regulations, and risk profiles across industries. For companies in every sector, the question is no longer whether climate change will affect business, but how.
When business leaders think about risk, they often focus on issues that feel immediate and familiar. Climate risk is now moving firmly into that category. A growing share of economic activity is already exposed to climate-related disruption, and companies are experiencing the effects through real operational and financial consequences. Physical climate impacts are no longer isolated events. They are becoming more frequent and more costly, creating uncertainty that directly affects how businesses plan, invest, and operate. This shift is reflected in how leading organizations are managing risk. CEMAsys is seeing more companies embed climate considerations into their enterprise risk management processes because climate risk influences the same decisions that traditional risk frameworks are designed to protect. Climate exposure affects how assets perform over time, how resilient supply chains are under stress, and how confidently companies can pursue long-term growth. Organizations that continue to treat climate risk as a standalone sustainability topic risk underestimating its significance. In a net-zero transition, and even in scenarios where climate outcomes are more severe than expected, climate risk directly shapes business continuity and enterprise value. Managing it alongside financial and strategic risks is no longer optional; it is a necessary step toward building a resilient business.
Some companies are slowing or deprioritizing sustainability and climate initiatives. Cost pressures, short-term budget scrutiny, and concern about political or regulatory backlash are leading some organizations to take a “wait and see” approach. In some cases, sustainability efforts are being paused not because the risks are unclear, but because acting now feels uncomfortable or exposed. This hesitation is understandable, but it is also risky.
Delaying climate and sustainability investments does not eliminate exposure. It simply postpones action while risks continue to accumulate. Physical climate impacts, supply chain disruptions, insurance constraints, and investor expectations are advancing regardless of political cycles. Companies that wait for perfect clarity or universal alignment may find themselves reacting under pressure, with fewer options and higher costs.
By contrast, the companies investing now, quietly & strategically with a clear focus on resilience are positioning themselves for long-term success. They are embedding climate risk into core risk management systems, stress-testing assets and strategies, and making informed decisions about where to invest, adapt, or exit. This work is not about signaling or public commitments; it is about protecting operations, margins, and enterprise value.
The companies acting now are not only preparing for a successful transition to a net-zero economy. They are preparing for a future in which climate impacts could be more severe, more disruptive, and less predictable than many plans assume today. If global efforts fall short, businesses that have already built climate considerations into how they manage risk and make decisions will be better positioned to continue operating under stress. Early action creates flexibility and resilience that cannot be rushed later, when impacts are already materializing. In this sense, investing in climate risk management today is not a bet on a single outcome, but a way to protect the business across a wide range of possible futures.
1. Treat climate risk as a business issue, not a sustainability initiative
The first and most important step is shifting ownership. Climate risk should sit within core risk and decision-making processes, with accountability at the same level as financial and operational risk. When climate is treated as a business issue, it starts to influence real decisions instead of remaining a reporting exercise.
2. Integrate climate risk into enterprise risk management.
Resilient companies are embedding climate risk into their existing ERM frameworks rather than creating parallel processes. This allows climate-related risks to be assessed, prioritized, and monitored using the same rigor applied to other material risks, making them visible to leadership and actionable across the organization.
3. Take a forward-looking view of assets and strategy.
Resilience depends on understanding how today’s decisions perform under future conditions. Companies that assess climate risk across asset lifetimes and strategic horizons are better equipped to avoid locking in exposure and can make smarter choices about where to invest, adapt, or redesign operations.
4. Focus on preparedness, not perfection
Waiting for perfect data or complete certainty delays action. The most resilient organizations start with what they know, identify priority risks, and build processes that can evolve over time. Early action creates flexibility and learning that cannot be replicated once impacts are already material.
5. Use climate risk insights to inform real business decisions
Climate risk assessments only create value when they influence how the business operates. Companies that use climate insights to guide capital planning, supply chain decisions, and long-term strategy are not just complying with expectations, they are actively strengthening their ability to perform under uncertainty.
When business leaders think about risk, they often focus on issues that feel immediate and familiar. Climate risk is now moving firmly into that category. A growing share of economic activity is already exposed to climate-related disruption, and companies are experiencing the effects through real operational and financial consequences. Physical climate impacts are no longer isolated events. They are becoming more frequent and more costly, creating uncertainty that directly affects how businesses plan, invest, and operate. This shift is reflected in how leading organizations are managing risk. CEMAsys is seeing more companies embed climate considerations into their enterprise risk management processes because climate risk influences the same decisions that traditional risk frameworks are designed to protect. Climate exposure affects how assets perform over time, how resilient supply chains are under stress, and how confidently companies can pursue long-term growth. Organizations that continue to treat climate risk as a standalone sustainability topic risk underestimating its significance. In a net-zero transition, and even in scenarios where climate outcomes are more severe than expected, climate risk directly shapes business continuity and enterprise value. Managing it alongside financial and strategic risks is no longer optional; it is a necessary step toward building a resilient business.
Some companies are slowing or deprioritizing sustainability and climate initiatives. Cost pressures, short-term budget scrutiny, and concern about political or regulatory backlash are leading some organizations to take a “wait and see” approach. In some cases, sustainability efforts are being paused not because the risks are unclear, but because acting now feels uncomfortable or exposed. This hesitation is understandable, but it is also risky.
Delaying climate and sustainability investments does not eliminate exposure. It simply postpones action while risks continue to accumulate. Physical climate impacts, supply chain disruptions, insurance constraints, and investor expectations are advancing regardless of political cycles. Companies that wait for perfect clarity or universal alignment may find themselves reacting under pressure, with fewer options and higher costs.
By contrast, the companies investing now, quietly & strategically with a clear focus on resilience are positioning themselves for long-term success. They are embedding climate risk into core risk management systems, stress-testing assets and strategies, and making informed decisions about where to invest, adapt, or exit. This work is not about signaling or public commitments; it is about protecting operations, margins, and enterprise value.
The companies acting now are not only preparing for a successful transition to a net-zero economy. They are preparing for a future in which climate impacts could be more severe, more disruptive, and less predictable than many plans assume today. If global efforts fall short, businesses that have already built climate considerations into how they manage risk and make decisions will be better positioned to continue operating under stress. Early action creates flexibility and resilience that cannot be rushed later, when impacts are already materializing. In this sense, investing in climate risk management today is not a bet on a single outcome, but a way to protect the business across a wide range of possible futures.
1. Treat climate risk as a business issue, not a sustainability initiative
The first and most important step is shifting ownership. Climate risk should sit within core risk and decision-making processes, with accountability at the same level as financial and operational risk. When climate is treated as a business issue, it starts to influence real decisions instead of remaining a reporting exercise.
2. Integrate climate risk into enterprise risk management.
Resilient companies are embedding climate risk into their existing ERM frameworks rather than creating parallel processes. This allows climate-related risks to be assessed, prioritized, and monitored using the same rigor applied to other material risks, making them visible to leadership and actionable across the organization.
3. Take a forward-looking view of assets and strategy.
Resilience depends on understanding how today’s decisions perform under future conditions. Companies that assess climate risk across asset lifetimes and strategic horizons are better equipped to avoid locking in exposure and can make smarter choices about where to invest, adapt, or redesign operations.
4. Focus on preparedness, not perfection
Waiting for perfect data or complete certainty delays action. The most resilient organizations start with what they know, identify priority risks, and build processes that can evolve over time. Early action creates flexibility and learning that cannot be replicated once impacts are already material.
5. Use climate risk insights to inform real business decisions
Climate risk assessments only create value when they influence how the business operates. Companies that use climate insights to guide capital planning, supply chain decisions, and long-term strategy are not just complying with expectations, they are actively strengthening their ability to perform under uncertainty.
Virginia is a sustainability consultant who helps organizations translate evolving climate, ESG, and regulatory expectations into actionable strategy. Her work spans climate and nature risk, ESG ratings and disclosures,and sustainability frameworks, with a focus on delivering credible, practical insights that support long-term resilience.
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