Businesses worldwide are facing climate risks, and companies with operations or supply chains in Southeast Asia are exposed to a range of climate hazards and vulnerabilities that can exacerbate these risks. To prepare for the effects of climate change, businesses in the region need to build resilience.
Why Read This?
The World Economic Forum reports that the leading threats to businesses today are extreme weather events, natural disasters, and the failure to mitigate and adapt to climate change. Climate volatility can disrupt or damage all aspects of a company’s operations, affecting access to natural resources that are vital for production, infrastructure, and logistics that are essential for a functioning supply chain, and markets for goods and services. Failing to understand and manage climate change properly can impact a business’ strategy, finances, operations, marketing, compliance, and human resources.
It is imperative for the private sector to take a two-pronged approach to climate action:
- To transition to a low-carbon economy, and
- To enhance adaptive capacity in the face of inevitable climate hazards.