Why building climate resilience is key for business success

As businesses prepare for the new year, they can't afford to overlook this key learning from 2024: Climate resilience and business success are converging. In the US, weather disasters are costing USD 150 billion per year and climate change is expected to cost USD . These unexpected costs are already shaping the way organizations operate. The most successful businesses are also planning ahead.

From making sure they are collecting the right operational data to investing in technology that can help predict weather patterns, there are more ways in which businesses can take the next step toward climate resilience.

IBM’s State of Sustainability Readiness Report 2024 examined responses from over 2,790 business leaders spanning 9 countries and 15 industries, shedding light on how organizations are preparing to face a range of sustainability issues. Respondents identified climate resilience as the “most critical sustainability issue.”  

Respondents were presented with over 30 survey questions correlated to climate risk and corporate responsibilities and covered strategic, financial, regulatory and compliance concerns. The research found that most organizations understand the necessity of climate risk mitigation to protect assets and advance operations.

At IBM, we have a clear sightline of how businesses can and should pursue this important work. For example, manufacturers can use historical weather data and AI to predict disruptions to their supply chain. Agricultural organizations can also use the same tools to forecast droughts, diseases and other climate-related challenges.

Even though business leaders acknowledge the importance of building climate-resilient operations, their ambitions do not yet match their actions. According to IBM’s report, only 50% of surveyed leaders feel prepared to deal with increasingly disruptive climate risks. C-suite are more optimistic than their vice presidents and directors when it comes to bolstering climate resiliency: 67% of top executives surveyed viewed their climate resiliency efforts as proactive, compared to just 56% of lower-level decision makers.

By analyzing the research, it is clear that organizations know that climate resilience is imperative. Yet, they struggle to take action. One way in which they can begin to do so is by investing in data- and AI-powered tools and applications such as those mentioned earlier. dsm-firmenich Animal Nutrition & Health, the European nutrition company, did exactly this. They used IBM Environmental Intelligence to forecast mycotoxin contamination in crops, saving the agricultural industry millions of euros each year. The same data they used to forecast and prevent dangerous fungal growth can also be used to forecast and prepare for extreme weather events such as droughts and floods. This type of technology is designed to provide users with easily accessible weather, climate and operational data so they can better prepare for emergencies such as hurricanes or flash flooding and manage some of the risks and costs that come with these.

Ultimately, organizations can invest in the right tools and use key insights to help build more resilient climate operations and address this crucial sustainability issue head-on. 

Download the State of Sustainability Readiness report here.

Learn more about IBM Environmental Intelligence.