As urgency to curb climate change continues, organizations must prepare to operate within an environment already transformed by its effects, writes Frédéric Godemel, EVP Energy Management at Schneider Electric
Adapting to climate change goes far beyond constructing barriers or firebreaks. It’s about ensuring business continuity, maintaining supply chain efficiency, and managing costs in a landscape increasingly shaped by environmental volatility. While emissions reduction has dominated conversations, adaptation continues to receive insufficient attention and investment.
Many organizations have already developed mitigation frameworks and plans, with Schneider Electric’s research indicating that 86% now possess such strategies. However, just 38% have defined adaptation approaches a mere 6% have fully executed them. Globally, adaptation and resilience require upwards of $200 billion each year yet only a third of this sum is currently funded.
Following the COP30 summit in Brazil, adaptation has emerged as the defining benchmark of credible climate action. Investors are increasingly seeking proof of climate readiness. Those lacking robust responses may find themselves excluded from funding opportunities.
Securing financial stability amid climate uncertainty
Regardless of political changes, the physical impacts of climate change continue to intensify, and without decisive action, they will only accelerate. The reasons for adaptation are rapidly gaining momentum. Financial instruments, such as green bonds and sustainability linked loans now support a wide array of upgrades, from building retrofits to infrastructure enhancements. Schneider Electric’s experience shows energy management initiatives can yield returns within 2-5 years, with energy savings reaching up to 40%.
Operational efficiency is not solely about minimizing consumption, it also delivers strategic advantages. Companies integrating resilience into their operations are outpacing their peers. This may involve implementing battery storage for solar energy, establishing microgrids to withstand grid pressures, or modernizing cooling systems to combat rising temperatures. These measures are substantive, they lower expenses, enhance asset worth, and draw sustained investment.
A recent executive survey highlights a notable shift: drivers for action are evolving from moral reason to regulatory compliance and savings opportunity, which has been the biggest increase since the 2023 survey.
From regulatory requirements to strategic advantage
Assessing climate scenarios has moved beyond formalities; it is now a critical tool for investors. Top organizations incorporate both physical and transitional risks into their due diligence and asset management processes, particularly in Europe, where regulations like SFDR (Sustainable Finance Disclosure Regulation) and EU Taxonomy need comprehensive climate analysis.
SE Advisory Services assists clients in translating complex climate projections into actionable insights. For instance, understanding the implications of a 1.5°C or 4°C temperature increase on property values, energy expenses, or operational stability is crucial. In warmer climates, cooling demands can account for up to 70% of peak electricity usage during heatwaves, underscoring the necessity of robust resilience strategies.
Integrating risk evaluations from the outset enables organizations to identify susceptible locations and emissions intensive activities, facilitating better informed investment choices.
Embedding resilience: From physical barriers to core business planning
Effective adaptation financing begins with better quality data. Businesses require precise climate risk modelling and regulatory frameworks that properly account for both physical and transitional threats. Initiatives like Schneider’s Environmental Data Program are fostering greater transparency, providing a foundation for data-based decision making and compelling investment.
Public sector incentives like grants and subsidies, combined with private sector tools such as sustainability-linked financing and climate insurance, can help mitigate project risks. However, lasting progress demands collective action – no single stakeholder can address these challenges in isolation.
The technologies to advance climate adaptation are already available. Solutions like EcoAct’s Climate Risk Platform offer visualizations of vulnerabilities, including flood risks, heat stress, and water scarcity, enabling companies to pinpoint and prioritize at-risk areas. This empowers leaders to recognize where operations, supply chains, or assets face exposure, guiding targeted adaptation measures such as infrastructure upgrades, site relocation, or resource reallocation. By utilizing these platforms, organizations obtain practical insights to proactively address risks, safeguard assets, and make strategic decisions, ultimately enhancing resilience, operational performance, and stakeholder trust. Such tools shift organizations from reactive to proactive.
For example, SE Advisory Services worked with Getlink, the operator of the Channel Tunnel, to perform a comprehensive climate risk assessment that uncovered 20 distinct risks and opportunities. Leveraging granular climate analysis, the collaboration offered monthly temperature predictions to inform cooling strategies within the tunnel and supplied detailed flood modelling to support investments in protective infrastructure for key facilities.
Demand for adaptation financing and for corporate strategies built around resilience is rising sharply. As highlighted by the Global Center on Adaptation, closing the global adaptation-finance gap will increasingly depend on private-sector capital and action. Businesses that act early, investing in climate-resilient infrastructure, embedding adaptive energy systems, and rethinking supply chains, will not only mitigate risk, but also seize emerging opportunities as climate disruption becomes a defining driver of global markets in 2026 and beyond.
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