Global Survey: Over Half of Companies Feel Climate Change Impact in Past Year
A global survey by Morgan Stanley reveals that over half of companies have felt the operational impact of climate change within the past year. The U.S. alone has spent nearly $1 trillion on recovery and climate-related needs. Meanwhile, nearly 90% of South American companies anticipate climate change to pose a risk to their business models by the end of the decade.
Climate change impacts are widespread, affecting businesses in various regions. Extreme heat and storms are the leading disruptions, followed by wildfires, water shortages, and flooding. These events have led to increased costs, worker disruption, and revenue losses for many entrepreneurs. Notably, businesses in the Middle East and North Africa view sustainability as a driver of value creation, despite being at high risk of extreme weather.
In North America, political volatility is seen as the top barrier to investing in sustainability. Some businesses are even 'greenhushing' or rolling back emissions targets. However, it's important to note that no specific South African businesses have been identified as suffering damages exceeding $360 million due to extreme weather events.
The survey underscores the urgent need for businesses worldwide to adapt to climate change and invest in sustainability. Despite regional differences in response, the impacts are global and far-reaching, affecting operations and bottom lines. Businesses must navigate these challenges while also addressing political and societal barriers.
