The proportion of British employers feeling the impact of extreme heat has leapt by more than two-thirds, and most still don’t have a full picture of losses in real terms.
Capgemini’s latest annual sustainability report, A World in Balance — The Resilience Reset — follows a record breaking summer for the UK. Temperatures broke all-time seasonal highs on numerous consecutive months, putting huge pressure on organisations from private companies to the NHS.
According to the new assessment, climate and water are rapidly becoming material business constraints, with 61% of executives now believing water scarcity will be a more significant challenge than energy in the next decade. This is reflected in expanding sustainability priorities, with emissions reduction just one factor that must be taken into account moving forward. Others include resilience, adaptation, access to key resources, and business continuation contingency planning.
Sustainability itself is widely seen as a business value deliverer, while AI is emerging as one of the most powerful enables for executing eco-friendly policies, however as artificial intelligence becomes more commonplace it is vital to address its high footprint. Currently, around half of organisations are using such technologies for reporting and compliance, 35% use systems for climate-risk forecasting and planning, and 28% rely on automation for sustainable product innovation and R&D.
‘Climate change disruptions have become our new normal, and yet there is still a wide gap between business leaders’ awareness of the risks and actual implementation. In order to protect their supply chains, operations, infrastructure, and access to essential energy, water, and materials, they can no longer defer climate action,’ said Cyril Garcia, Global head of Sustainability services and Corporate Responsibility, and Member of the Group Executive Board at Capgemini. ‘It is encouraging to see organizations prioritize adaptation and resilience for sustainable growth. But as climate and political risks evolve, organizations must continue to embed sustainability into their core business strategy and day-to-day operations.’
Image: Fer Troulik / Unsplash
More on climate change & biodiversity:
Himalayan glacial lakes are growing at an alarming rate, study warns
Europe’s forests are losing their ability to recover from climate shocks