Businesses globally are unprepared for climate-related disasters, with outdated continuity plans failing to address the growing frequency and intensity of these disruptions. This stark reality is revealed in ACCA’s latest report, Weathering the Storm: Building Resilience Against Climate Disruptions.
The report uncovers alarming preparedness gaps, with only 20 per cent of surveyed businesses identifying climate-related risks across their operations. Even more concerning, just 17 per cent rehearse responses to major disruptions, and 25 per cent lack mechanisms to build resilience.
“Spain’s recent floods and escalating hurricanes worldwide remind us that climate change is not a distant threat; it’s reshaping lives and communities now,” said report author Emmeline Skelton, Head of Sustainability at ACCA.
“Organisations must prioritise climate adaptation—not only to safeguard their operations but to protect the people and places at risk. Rising temperatures, intensified rainfall, and sea level rise make it unmistakable: action is urgently needed to build resilience and prevent further harm.”
“Environmental threats are accelerating, and comprehensive preparation measures are crucial. Yet, our survey shows that climate adaptation planning is not receiving the urgent attention it needs. It’s time for organisations to act decisively to protect both their future and the communities they serve.”
The findings serve as a critical lesson for businesses in Malaysia, where climate-related disruptions like seasonal floods, landslides, and extreme heat are increasingly common. While the report highlights global insights, Malaysian businesses can gain valuable lessons in adopting robust climate risk assessment frameworks and strengthening organisational resilience.
Bridging the Preparedness Gap
Globally, two-thirds of organisations are underinvesting in measures to address climate risks, with only 37 per cent planning to increase spending on resilience. The report also underscores the importance of supporting remote workforces in managing climate risks, including power outages and health concerns, which resonate with Malaysia’s experience of frequent electricity disruptions during natural disasters.
“Organisations with a digital-first approach must not overlook climate risks impacting their remote workforce,” added Skelton. “To ensure resilience, forward-thinking organisations need to support remote workers proactively with measures like power backups and health monitoring to stay prepared in an increasingly unpredictable climate.”
Data for the report, gathered from ACCA’s Global Economic Conditions Survey of over 600 finance professionals worldwide, illustrates these concerns vividly. Power outages topped climate-related disruptions in Africa (54 per cent of respondents), while North America’s primary concerns included supply chain breakdowns (41 per cent) and employee health issues (39 per cent).
A Malaysian Perspective
Adding to this, Sharath Martin, Senior Policy Manager for Asia Pacific at ACCA, commented: “In Malaysia, where sectors like agriculture, manufacturing, and tourism are critical to the economy, climate resilience must be an urgent priority. Businesses need to recognise that their ability to adapt and thrive amid climate disruptions will determine both their survival and the well-being of the communities they serve. By leveraging the tools and strategies in this report, Malaysian organisations can proactively protect their operations and contribute to a sustainable future.”
Finance Professionals as Climate Resilience Champions
The report highlights the pivotal role of CFOs and finance teams in driving climate resilience through risk-based planning and sustainable business strategies. By championing transparency in emissions targets and transition plans, finance professionals are essential in reducing carbon footprints and advancing net-zero goals.
This is particularly relevant for Malaysian businesses striving to comply with sustainability-linked financial instruments and regulatory frameworks such as Bursa Malaysia’s sustainability reporting requirements. With the adoption of these global best practices, finance teams in Malaysia can lead the way in creating a fair, inclusive, and climate-resilient future.
Tools for Resilience
ACCA’s report includes toolkits to equip finance teams with skills in scenario testing, crisis management planning, and continuity strategies. These practical resources are crucial for helping Malaysian businesses navigate disruptions and protect their operations.
“Climate adaptation planning must become a priority across all sectors,” Skelton urged. “Building resilience is not just about ensuring organisational survival—it’s about securing the future of our communities and economies.”
ACCA presented the report’s findings at the recent COP29 climate summit in Azerbaijan, alongside other research and guidance on sustainability issues.
The full report and resources are available on ACCA’s website: https://www.accaglobal.com/gb/en/professional-insights/global-profession/climate-disruptions.html.
