The vast majority of executives consider environmental action to be critical for securing the future success of their organization.

We have seen this commitment demonstrated, for example, in the proliferation of net zero trajectories and other mitigation efforts over the last several years. It makes sense: by 2049, climate change could cost the global economy nearly $38 trillion annually.i  

In addition to emissions reduction strategies, executives have the opportunity to build resilience in other ways. While initiatives to limit climate consequences are essential, preparing for future conditions will help organizations maintain operations and generate greater value over the long term. Future-proofing relies on climate adaptation, and though many organizations are implementing strategies to thrive in the decades to come, some are still determining how to bridge the gap. 

Perceived readiness versus real resilience 


 While a majority of organizations consider themselves prepared for climate disruption, our findings show that they have not yet reached their full future-proofing potential. Our latest research, laid out in A world in balance 2025, demonstrates a clear disconnect between perceived readiness and true resilience. More than half of executives (54%) say their organization can go farther in preparing for climate disruption – yet not all are taking concrete steps to future-proof their operations.  

It is encouraging that three-quarters of executives say sustainable practices are central to their future-proofing efforts. But strategic planning should not be conflated with being truly prepared. Real readiness means preparing for the uncertainties of transition, such as new environmental regulations, today. It also means anticipating physical disruptions to operations caused by more frequent and more extreme weather events.  

Astute organizations like the telecom giant BT Group are leading the way in adaptation. Climate risks like flooding or extreme heat can damage the organization’s network infrastructure and disrupt critical services. That’s why BT is already adapting to protect operations by moving or upgrading critical infrastructure. The group has consolidated its network sites to reduce risk exposure and introduced early warning systems to maintain services. BT executives understand that adaptation is not just about reacting to events in the present; it’s about anticipating the next level of disruption and ensuring the organization can withstand it. 

Climate adaptation as a source of innovation and value creation 
 

Just as adaptation helps reduce risk exposure, it also creates new opportunities for innovation, competitiveness, and profitability. Many organizations say the single greatest benefit of adaptation in the next five years will be higher profitability. Almost half (49%) of organizations have already realized a positive return on investment (ROI) on their sustainability investments. 

Adaptation also brings value in other ways, including by presenting new business opportunities and improving customer lifetime value. Fashion retailer H&M, for example, boosted its circularity by investing in the second-hand platform Sellpy. This increased their product resale revenue. Another multinational fashion retailer operates their resale program as a standalone business unit that generates its own revenue and turns a profit. But that’s not all – a senior executive from the organization reports that their repair services also help successfully retain customers. 

Future-proofing goes beyond making sure an organization can withstand physical or regulatory challenges. Finding new opportunities for expansion that keep an organization on a growth trajectory is another way to create resilience. 

Action today will ensure tomorrow’s success 

As climate impacts intensify, organizations that fail to translate adaptation strategies into on-the-ground action will be increasingly vulnerable to physical shocks and tougher competition. Organizations that act early to adapt to climate risks before they become urgent issues will be best placed to stay competitive and sustain business value over the long term.