DSR & Partners supports companies
in adapting to climate change
The climate is changing
faster and more extremely than ever before -
with direct impacts on business and the economy.
It's getting warmer - what do companies have to prepare for?
Selected examples along the value chain:
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Global impact on and fluctuations in food production
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Extreme weather situations such as floods are disrupting the supply chain
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Temporary shortages for products like cocoa, vanilla, mango, avocado, etc.
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English P&O Doubling the flood risk at critical production locations, such as in China or Central Europe
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Approximately 800 million people (9%) are affected by an extreme heat wave every 20 years and, in addition to health aspects, their productivity is limited
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Increased investor focus on climate risks affecting financial flows
Product portfolio
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Focus on technological solutions for adaptation (e.g., software and forecasting)
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Solutions that make existing infrastructure more durable (e.g. Greening walls)
1,5°C - 2°C
Raw materials & supply chain
Production & Organization
Climate realism
It will be uncomfortable - warmer, drier, wetter, windier in the 3 °C scenario, depending on the very location.
For a long time, we have known that the climate is changing faster and more extremely than ever before. Currently, companies are still trying to contribute to achieving the 1.5°C target in some way. With decarbonization and efficiency - but unfortunately, it seems the math does not add up. We are heading towards a much warmer world - with consequences along the entire value chain that are hard to imagine today. In short, a rethinking is necessary on how companies can adapt to the changing climate. To put it bluntly, green electricity alone does not protect against the next flood or heatwave. We need new concepts for adapting to climate change that create more resilience.
Risk calculation
It will be costly – for Germany, the forecast is up to €900 billion per year for climate damages (about 23% of today's GDP).
The increasing frequency and intensity of extreme weather events underscore the urgency for businesses to assess the potential impacts of climate change on their value chains. In an environment where insurers, scientists, and consulting experts compete for the most accurate predictions of financial losses from climate-related disasters, the need for a well-founded, specific risk assessment is paramount. Merely considering general forecasts is not sufficient; rather, it is crucial to understand the climatic changes that will affect specific regions and industries.
Concrete solutions
It's becoming strenuous – the change in climate also necessitates a change within companies to be able to respond appropriately.
Until now, companies have put a lot of energy into their climate protection strategies. Currently, companies are dealing with stricter European sustainability reporting requirements. What is needed to encourage more investments in adapting to climate change? Metrics like the "RORI" (Return on Resilience Investment) can offer a new perspective. Technical innovations, including those from emerging startups, provide surprising solutions. This extends to cultural issues that have traditionally valued "heroic" problem-solving over wise foresight. Overall, companies need a new awareness of the risks and solutions related to adapting to climate change.