Climate Resilience White Paper
2025-06-30 04:34:19
Enhancing Climate Resilience: A New White Paper for Businesses Addressing Climate Change Risks
Enhancing Climate Resilience in Businesses
As the frequency and severity of natural disasters due to climate change continue to increase, businesses face significant challenges in managing associated risks. The Climate Change Resilience Enhancement Council, under the leadership of EY Strategy and Consulting (EYSC), has released a new white paper titled "Approaches to Natural Disaster Risk Analysis and Response in Private Companies - Towards Improved Resilience to Climate Change."
This comprehensive document serves as a practical guide for businesses to assess and respond to physical risks arising from climate change, including typhoons, floods, droughts, and heatwaves. According to the World Economic Forum (WEF), 70% of surveyed companies identified acute physical risks, while 51% noted chronic physical risks as critical challenges impacting their operations and finances. The estimated future financial impact of these risks ranges from $664 billion to $772 billion, equating to about 10% of annual sales and roughly 4% of market capitalization for the affected companies.
It is essential for companies to address these risks proactively. As climate change progresses, the social and financial implications become increasingly dire. There is a growing emphasis from disclosure standards such as IFRS and SSBJ, which require companies to analyze and respond to physical risks adequately. However, many organizations lack established methodologies to conduct this analysis, resulting in uncertainty for personnel tasked with risk management. This white paper aims to fill that knowledge gap, offering a structured approach for businesses to follow.
The Climate Change Resilience Enhancement Council's goal is to foster voluntary recognition among private sector entities regarding the criticality of analyzing and responding to physical risks. By doing so, the Council hopes to raise awareness and ultimately enhance societal resilience against climate change risks. EYSC’s Koichi Oyama emphasizes the urgency of boosting resilience to ensure the continuity of lives and economic activities amid escalating natural disasters driven by global warming.
White Paper Download
The white paper "Approaches to Natural Disaster Risk Analysis and Response in Private Companies - Towards Improved Resilience to Climate Change" is now available for download.
About the Council
The Council is a voluntary initiative consisting of various private companies aimed at deepening knowledge on effective risk assessment and response strategies to support economic activities in Japan and globally. Active members include prominent firms such as Weathernews Inc. and major insurance companies like Tokio Marine & Nichido Fire Insurance Co., Ltd. The collaborative efforts are geared towards improving resilience against climate change and creating innovations that benefit society.
The Council encourages other entities interested in sustainable growth and enhanced resilience to contribute and participate in its initiatives.
Contact for Inquiries
For additional information regarding the Climate Change Resilience Enhancement Council, please reach out to the secretariat at climate.resilience@jp.ey.com.
About EY
EY is committed to creating value for clients, members, and society by establishing trust in capital markets and building a better working world. Utilizing data, AI, and advanced technology, EY teams assist clients in shaping their futures with confidence, addressing present and future urgent challenges across all sectors including assurance, consulting, tax, strategy, and transactions. The firm operates in over 150 countries, harnessing industry insights and a vast network to deliver services effectively.
EY's Consulting Services
EY’s consulting services focus on transforming businesses through the power of people, technology, and innovation. With over 70,000 consultants worldwide, EY aims to lead in transformation by enabling rapid technology adoption and large-scale innovation while creating long-term value for people, clients, and society.