Climate adaptation is a priority – but most organizations are underprepared

With disruption no longer a distant threat, organizations need a targeted response

Climate adaptation is a priority – but most organizations are underprepared

With disruption no longer a distant threat, organizations need a targeted response

Climate change is already impacting business. Most organizations have experienced climate-related supply chain disruptions (86%), production stoppages (78%), or raw material scarcity (73%).

Climate risks are expected to intensify, costing the global economy approximately $38 trillion annually by 2049.³ Rising temperatures, shifting rainfall patterns, and increased temperature variability could push these costs even higher.

Businesses recognize these risks. According to our survey, they expect to face challenges in maintaining operations during extreme weather events (76%), sourcing materials or parts (74%), and managing insurance or financial risks (66%). Meeting regulatory requirements and water and energy insecurity were other notable concerns.

Most organizations have already felt the impact of climate change

_{Source: Capgemini Research Institute, Sustainability transformation trends survey, June–July 2025, N = 716 organizations.}

_{³ PIK, “38 trillion dollars in damages each year: World economy already committed to income reduction of 19 % due to climate change,” April 2024; Nature, “The economic commitment of climate change,” November 2024.}

Although many executives consider their organizations well- or fully prepared for several types of climate risk, this confidence is not always backed by implementation. True adaptation requires assessing risks, integrating risk management into planning, and taking concrete action.

In our survey, 56% of executives said their organization actively prioritizes climate adaptation as part of its broader climate strategy. Yet more than half (54%) said their organization is underprepared for the impacts of climate change. The gap between perceived levels of preparedness and tangible action suggests that executives may be equating preparedness with planning, reflecting a narrow view of what climate adaptation truly entails. Without translating adaptation strategies into on-the-ground action, organizations risk remaining vulnerable as climate impacts intensify.

Climate adaptation is the process of adjusting to the current and future impacts of climate change.

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Organizations have taken limited concrete adaptation measures

^{Source: Capgemini Research Insititute, Sustainability transformation trends survey, June-July 2025, N = 2, 146 executives.}

Gabrielle Ginér, Head of Environmental Sustainability at BT Group:

Climate risks like flooding or extreme heat can damage our network infrastructure and disrupt services. It’s important for us to make sure our services keep going under any circumstances. That’s why we have been moving or upgrading our critical infrastructure where needed. In FY25, we invested more than £8m in cooling upgrades to our core network and mobile sites. Climate resilience needs to be built now, not later.”