Only 20% Of Businesses Ready For Climate Disasters Ahead Of COP29: ACCA Report

Businesses and other organisations are not prepared for weather-related disasters, with out-of-date business continuity plans failing to reflect the frequency of disruption of climate-related events, according to Association of Chartered Certified Accountants (ACCA’s) climate disruptions.

This new report paints a concerning picture of organisational preparedness, with only 20 per cent of businesses and other organisations surveyed identifying climate-related risks across their operations. Even more troubling is that a mere 17 per cent regularly rehearse their response to major disruptions, while 25 per cent have no mechanisms in place to build resilience at all.  

However, resilience is not a priority for organisations with two-thirds of respondents not investing adequately to address the physical risks posed by climate change and only 37 per cent planning to increase spending in this area. 

Data for the report came from ACCA Global Economic Conditions Survey of over 600 finance professionals around the world and illustrates these concerns vividly. Power outages topped the list of climate-related disruptions in Africa (54 per cent of respondents), while North America’s leading worries included supply chain breakdowns (41 per cent) and employee health issues (39 per cent). 

CFOs and finance teams are essential to building climate resilience through risk-based planning and sustainable business strategies. By championing transparency in emissions targets and transition plans, finance professionals play a critical role in reducing carbon footprints and advancing net-zero goals, ultimately supporting a fair, inclusive, and climate-resilient future.

 ACCA will be sharing the findings of this report, and other research and guidance it has produced on a range of sustainability issues, at the COP29 climate summit in Azerbaijan.