SEPTEMBER 21, 2022
Ask any business leader about climate strategy and the answer will most likely involve mitigation. After all, reducing greenhouse gas emissions is critical to averting the worst effects of climate change. But fewer leaders are talking about adapting to climate change—and the distinct advantages that come with building adaptation into your climate strategy.
Adaptation is about transforming structures and processes to better withstand the effects of climate change. It’s about building resilience, helping companies and communities manage the risks and disruptions that come with extreme weather events, so they can continue to grow and thrive. Adaptation is particularly critical for low- and middle-income countries, many of which have fewer resources and greater vulnerability to climate change—including Egypt, where world leaders gathering in November for COP27 will spotlight the importance of adaptation and resilience to the global climate effort.
We asked several BCG experts what leaders need to know about adaptation and resilience and how to incorporate both principles into an effective climate strategy. Here’s what they had to say.
Few governments are adequately prepared for climate change’s impact. Leaders must develop robust strategies for helping communities adapt and become resilient.
The global climate dialogue needs to give greater attention to how climate change is already affecting African nations—and the continent’s urgent need to adapt.
Data analysis and modeling can predict climate risks with remarkable accuracy. Leaders should be using these tools to prioritize adaptation projects.
To win funding for climate adaptation projects, quantify the socioeconomic benefits they can bring—as well as the costs of inaction.
Climate change is a global problem. But its effects can vary by community, even within the same region—as will the optimal solutions.
Climate change has become one of the greatest sources of strategic corporate risk. Adaptation and resilience should be a central part of leaders’ agendas.
