Only 20 pc of businesses prepared for climate risks: ACCA  

As COP29 opens with a focus on climate resilience, report by Association of Chartered Certified Accountants, (ACCA) reveals a stark reality that while climate disasters loom, only 20 pc of businesses are adequately prepared to face them.

Association of Chartered Certified Accountants, (ACCA), a global body of accountants, says that only 20 pc of businesses are prepared for climate-related disasters. As extreme weather events increase, this highlights the urgent need for organisations to strengthen resilience and adopt proactive strategies to address growing climate risks.

In a press statement, ACCA says these findings are part of its report Weathering the Storm: Building Resilience Against Climate Disruptions that would be presented at the climate change summit COP29 which is began in Baku on Monday.

ACCA says that only 17 pc of businesses regularly rehearse responses to major disruptions, while 25 pc lack any resilience-building mechanisms.

It adds that despite growing climate risks, resilience remains a low priority for many, with two-thirds of organisations underinvesting in climate safeguards and only 37pc planning to increase spending in this critical area.

ACCA says that data from its Global Economic Conditions Survey of over 600 finance professionals highlights stark regional concerns. While power outages top the list of climate disruptions in Africa, with 54 pc, North America’s biggest worries include supply chain breakdowns at 41 pc, and employee health issues at 39 pc, illustrating the diverse challenges businesses face globally.

It adds that CFOs and finance teams play a key role in climate resilience, driving risk-based planning, transparency in emissions targets and net-zero goals to create a fair, inclusive and resilient future.

ACCA adds that the report offers toolkits for finance teams on resilience, scenario testing and crisis planning, while outlining key actions businesses and governments must take to address climate risks and build resilience.

“The recent floods across India from Assam and Tamil Nadu to Bengaluru are harrowing reminders that climate change is not a distant threat, it is reshaping our lives and our communities right now. Organisations must make climate adaptation a priority not only to safeguard their operations but also to protect the people and places at risk. Rising temperatures, more intense rainfall, and swelling sea levels make the evidence unmistakable, we must act now to build resilience and mitigate further harm,” says Md Sajid Khan, Director India, ACCA.

“The escalating environmental threats demand comprehensive preparation measures. Yet our survey reveals that climate adaptation planning is still not receiving the urgent attention it requires. It’s time for organisations to take decisive action to protect both their future and the communities they serve” Khan adds.

“Organisations with a digital-first approach can’t overlook climate risks affecting their remote workforce. To ensure resilience, forward-thinking organisations need to proactively support remote workers with measures like power backups and health monitoring to stay prepared in an increasingly unpredictable climate,” says Emmeline Skelton, Head of Sustainability, ACCA.