Risks of avoiding climate conversations in business

When in Doubt, Just Delete It? Corporate Climate Silence is Getting Louder 🌍🚨 According to a recent Financial Times investigation by Attracta Mooney and Susannah Savage, major U.S. corporations are quietly erasing climate commitments from public view. The report reveals that companies like Walmart, KraftHeinz, Meta, Ford Motor Company, and American Airlines have scrubbed or softened references to climate change from their websites. In some cases, bold pledges—like cutting emissions by 50% by 2030—have disappeared entirely. This isn’t happening in a vacuum. With political attacks on environmental policies intensifying, many companies are opting for "greenhushing"—downplaying or omitting sustainability efforts to avoid controversy. But of course, this makes perfect sense. After all, the election of Donald Trump has fundamentally altered the science of climate change and carbon emissions, right? Surely, CO₂ molecules now behave differently depending on who occupies the White House. 🤔🌱💨 (Okay, sarcasm over.) Here’s the real issue: erasing climate commitments doesn’t erase climate risks. 🔹 Investors are watching. The push for transparency in ESG reporting isn’t just about optics—it’s about long-term financial stability. Weakening climate targets today could mean increased regulatory scrutiny, shareholder activism, or even capital flight tomorrow. 🔹 Customers care. Greenwashing is bad. But greenhushing? It sends the message that a company’s commitment to sustainability is only as strong as the political winds allow. That’s a fast way to lose trust. 🔹 Employees are paying attention. Younger talent, in particular, prioritises sustainability. A quiet retreat on climate commitments could hurt not just a company’s brand, but also its ability to attract and retain top talent. Beyond the immediate reputational risks, this entire approach is staggeringly shortsighted. Climate change isn’t a PR issue—it’s a physical reality that will disrupt supply chains, displace populations, and drive economic instability. Pretending otherwise doesn’t change the science, it only delays the inevitable reckoning. And at its core, this is deeply disappointing. Corporate leadership isn’t just retreating from climate action; it’s demonstrating a complete moral failure. If a company’s sustainability strategy evaporates the moment political pressure rises, was it ever real in the first place? 🌎💔 What do you think? Are we entering an era where businesses retreat on sustainability—not just in words, but in actions too? 🔗 Full article here: https://lnkd.in/egngPgqw #ClimateRisk #ESG #CorporateResponsibility #Greenhushing #Sustainability

Climate Risk = Business Risk 🌍 As climate impacts intensify, the connection between environmental risk and business risk is becoming more direct and more difficult to ignore. These risks are no longer theoretical. They are affecting assets, operations, and financial planning across industries and regions. Severe weather events such as storms and floods are damaging infrastructure, halting operations, and increasing the costs of repair, insurance, and downtime. Heatwaves are lowering workforce productivity and raising the incidence of heat related health issues, particularly in sectors dependent on physical labor or lacking adequate climate control systems. Droughts are limiting access to essential inputs like water, disrupting industrial processes and increasing operational costs for water intensive sectors. Sea level rise is placing facilities, warehouses, and offices in coastal areas at risk of flooding, requiring significant investments in adaptation or relocation. Wildfires are interrupting transportation networks and regional supply chains, resulting in logistical delays, inventory disruptions, and increased delivery costs. Increased climate variability is making business planning more uncertain. Fluctuating weather patterns complicate forecasts, investment decisions, and long term strategy development. Energy infrastructure is also affected. Extreme temperatures and natural disasters are disrupting electricity and fuel supply, creating additional risks and increasing energy expenditures. Insurance markets are responding. Coverage in climate exposed areas is becoming more expensive or unavailable, leaving businesses with greater financial exposure and limited risk transfer options. These risks highlight the need for companies to integrate climate considerations into core decision making processes, from operations and procurement to finance and long term strategy. Addressing climate impacts is not a secondary issue. It is essential to maintaining competitiveness and resilience. #sustainability #sustainable #business #esg #risk

Yesterday's investor call lasted 12 minutes. (they only asked these 5 questions) They scanned past the usual suspects: - Carbon neutral by 2050 - Science-based goals  - Pretty charts - 2030 targets And went straight to: 🚨 "Show us your water stress map." Your water availability analysis for key sourcing regions. Because that Spanish tomato supplier you depend on? They're facing allocation cuts next season. 🚨 "What's your stranded asset timeline?" That new plastic packaging line you're installing has a 15-year depreciation. Meanwhile, EPR fees are doubling annually. They want to know when it stops being an asset and becomes a liability. 🚨 "How are you pricing climate volatility?" Fixed-price contracts assume predictable harvests. After 3 of the 5 worst UK harvests happened since 2020, investors know those assumptions are dead. They're calculating whether your procurement strategy survives 40°C summers. 🚨 "Where's your transition revenue?" They've seen companies turn carbon credits from regenerative agriculture into new income streams. Early movers are already offsetting transition costs through carbon farming partnerships. If you're not exploring this, you're leaving money on the table. 🚨 "What happens when your biggest customer demands Scope 3 data?" Last month, a brand lost its biggest retail account. The buyer asked for Scope 3 emissions data. They had a year to respond. They still didn't have it. The climate conversation changed… From 2050 targets to 2026 risks. From "doing good" to operational resilience. From carbon metrics to water, volatility, and stranded assets. You CAN’T impress investors by ambition anymore. They're looking for evidence you understand what's coming. P.S. Have you turned ANY climate risks into revenue opportunities?

Climate change is a future problem.” I hear this all the time. (Here’s why it’s actually a right now problem.) First, a mindset shift: Climate change isn’t just an environmental risk. It’s a financial risk. Let’s break it down. ➜ 1. Businesses are already losing $100 billion a year That number isn’t from a far-off projection—it’s happening right now in EBITDA losses. And if we don’t act, it’s set to exceed $1 trillion by 2035. You might be thinking: Where’s the impact today? Easy—look at infrastructure: 🚆 Network Rail lost 1.5 million minutes of operational time last year due to climate-related disruptions. 🌊 Water utilities are getting hit hard by flooding, leading to massive financial losses. 🛒 Supply chains are under pressure, impacting supermarkets, distributors, and ultimately, consumers. ➜ 2. This isn’t just about risk. It’s about opportunity. Protecting business assets means investing in resilient infrastructure—roads, railways, ports, airports. The companies that act now won’t just survive—they’ll thrive. Instead of seeing climate adaptation as a cost, smart businesses will treat it as an investment. ➜ 3. Want to understand the full picture? Check out the latest Accenture & World Economic Forum report—it breaks down the risks and the solutions. 💡 The question isn’t if businesses should act. It’s how fast they can move. How is your company preparing for climate-driven financial risks? #ClimateRisk #BusinessResilience #Sustainability #ClimateFinance #Infrastructure

Superb report published today from Green Futures Solutions (University of Exeter) on the inadequacy of current corporate and financial risk models in accommodating climate risks. At its most fundamental, I see the failure of these risk models as the core assumption that our systems of the future - whilst dynamic - will retain the same basic structures, functions and features as they do today. The assumption that our social, economic, and environmental reality will march onward into a flat, linear, tabula rasa which extends infinitely into the future. Tipping points science shows us that this isn't true. With increased temperatures and continued ecosystem degradation, tipping points will be reached, and system collapses will follow. And with system collapses come cascade failures, and often unforeseeable (and catastrophic) consequences. These consequences and radical uncertainties have to be - as far as they can be - factored into a new generation of risk governance approaches, fit for the future that lies before us. In the Ecologi | B Corp™ team, we're spending a lot of time thinking about risk management strategies as a core component of - and motivator for - corporate climate action. On our project assessments, we use sensitive risk models which take into account extreme climate scenarios and the significant uncertainty that comes with them - so that we can bake-in precaution, prevention and resilience from the start. Risk assessment and management has become a huge part of the work we do, both internally and for our clients. It's not lip service to say that climate risk management is business critical. Climate change impacts are arguably the most foundational, most all-encompassing of all risk factors affecting businesses today. And many current risk approaches in use by businesses and investors just aren't up to the task. Read the report 👉 https://lnkd.in/evipkQNX Good write-up in The Guardian 👉 https://lnkd.in/eXPeYjt5 📸 : John Towner via Unsplash

When governments roll back climate commitments and turn climate science into a culture war, business leaders face a choice: stay silent, or step up. In my latest OpEd for Oxford Leadership, I argue that CEOs and boards can no longer treat climate as a peripheral ESG topic or a PR exercise. We are increasingly the frontline defenders of evidence-based climate science, public trust, and long-term value creation for our stakeholders. This is not about virtue signalling. It is about risk, responsibility and legacy: • #Risk: Climate inaction now creates greater financial, legal and reputational exposure than bold action—from stranded assets to investor lawsuits to talent flight. • #Responsibility: Leaders have the influence, capital and platforms that many governments are refusing to use. • #Legacy: The decisions we make in this decade will define the world our children inherit—as business leaders and as citizens. From the World Economic Forum's Alliance of CEO Climate Leaders to companies investing heavily in clean tech and regenerative business models, we're seeing a new kind of leadership emerge—one that treats climate advocacy as part of fiduciary duty, not a distraction from it. I invite my fellow CEOs, board members and investors to read the article and reflect on a simple question: What stance is your leadership taking when politics fails the planet? Read here: https://lnkd.in/gHRpyM-S #OxfordLeadership #ClimateAction #ClimateLeadership #CorporateGovernance #ESG #Leadership

What would you do if your business's financial health depended on the weather? That’s not just a hypothetical. Increasingly, climate risks are reshaping how lenders assess the creditworthiness of businesses. Here’s why that matters and what it could mean for your bottom line. Let’s start with a simple truth: Not all loans are created equal. Loans backed by physical assets like commercial real estate tend to have higher recovery rates in case of default. Why? Because there’s a tangible asset something with value to recover, compare that to unsecured loans, where lenders are often left empty-handed if things go south. Now, Layer climate risk onto this equation. Imagine A factory located in a region prone to floods or hurricanes. The more vulnerable the location, the greater the risk that the physical asset could be damaged or even wiped out by extreme weather. That could significantly lower the recovery rate for lenders, turning what might have been a manageable risk into a major financial headache. This is where ESG (Environmental, Social, and Governance) maturity comes into play. Companies with robust climate risk strategies those proactively safeguarding their operations and assets are better positioned to weather the storm. But here’s the kicker: those that aren’t? They might face higher borrowing costs or even find themselves cut off from certain financial institutions altogether. According to the Global Risk Report 2024, climate-related risks are now among the top global risks over the next decade. And in finance, these risks translate directly into higher LGD (Loss Given Default) estimates. For borrowers, this means two things: 1) You’ll pay more to access capital if your ESG profile isn’t up to scratch, 2) You might need to rethink your climate strategy not just for the planet, but for your financial survival. From my perspective, this isn’t just about risk mitigation. It’s about staying competitive in an evolving market. Financial institutions are becoming more selective, and businesses need to adapt. By improving ESG maturity, companies can not only secure better loan terms but also position themselves as resilient players in a world where climate risk is no longer a distant threat but a present reality. The bottom line? Climate risk isn’t just an environmental issue it’s a business issue. And how you respond could make all the difference. What steps is your business taking to adapt to this new financial landscape? Let’s discuss this in the comments. ⬇️

As world leaders gather for COP30 in Brazil, it's easy for business leaders to feel disconnected from the high-level policy debates. I know I do. But the climate crisis will not be solved by government or political leaders. Climate is a commercial, operational, and strategic reality for every single business. This is no longer just about compliance or reputation. It's about risk and resilience. - Your supply chain is a climate risk. - Your energy source is a climate risk. - Your ability to attract talent is a climate risk. But on the flip side, climate action is your single biggest opportunity. - Building a sustainable supply chain builds resilience. - Investing in energy efficiency cuts costs. - Having credible climate action strategies and actions attracts the best people and customers. Don't wait for policy. The business case for climate action is already here. The leaders who are acting now are building the category-defining businesses of tomorrow. What's the biggest climate opportunity for your industry? #COP30 #ClimateAction #BusinessStrategy

The climate conversation has permanently changed. We’re no longer just talking about the energy transition, carbon emissions, or regulatory compliance. Today, the conversation centers on preventing catastrophic loss. Over the last two decades, climate investment has evolved through distinct phases: 1️⃣ CleanTech 1.0 (2005–2015): Powering the energy transition with renewables. 2️⃣ ClimateTech 2.0 (2015–2025): Reducing emissions and focusing on sustainability. 3️⃣ ClimateRisk 3.0 (Now): Protecting individuals, businesses, and infrastructure from economic and physical loss. Companies that ignore these risks face the very real possibility of eroded enterprise value. This is beyond physical impacts from hurricanes and wildfires—we’re talking about billions of dollars in lost revenue, asset devaluation, and unmanageable liabilities that could cripple companies for years to come: 💠 Energy Instability: Weather-related outages account for 80% of major U.S. power failures, with disasters costing $120B+ annually. On top of this, significant price spikes are leading to energy costs crushing margins for customers. 💠 Infrastructure Vulnerability: First order effects from asset damage will drive up insurance premiums and erode asset value—U.S. home values could drop $1.5T in 30 years. Second order effects from investor skepticism could increase the cost of capital—annual investment in infrastructure could reach $6.9T by 2030 for companies to stay aligned with shareholder goals. 💠 Enterprise Value at Risk: Third-order effects from asset damage may reshape entire markets. Prolonged vulnerability could spur industry consolidation & exits. Evolving labor demands, along with the risk of stranded assets, threaten to upend traditional valuations. Supply chain disruptions alone may cause $25T in net losses by mid-century. 💠 Insurance Fallout: Already, entire regions are being deemed “uninsurable,” with insurers like State Farm & Allstate exiting high-risk markets. In 2024 alone, climate losses exceeded $400B, with a growing coverage gap of >60% that was not covered by insurance. With a targeted focus on both Climate x Insurance, Equal Ventures has had a unique opportunity to build a deep thesis in this space—investing in companies that mitigate climate-driven operational risks, create financial resiliency in volatile markets, and redefine enterprise security by building strategies that secure both physical and digital assets. Companies like: Stand, Odyssey Energy Solutions, Texture, Shadow Power, David Energy 💡 Check out our latest blog post - link in the comments below. Rick Zullo Adam Chadroff Sophia Dodd

I was talking to an enterprise risk leader at a Fortune 500 company last week. I asked: Does climate risk ever make it to your board? Her answer: "It doesn't have the velocity to affect the company in the next 6-12 months." She's not wrong about most sustainability issues. Net zero by 2050 isn't a quarterly conversation. Carbon accounting doesn't require emergency board meetings. But here's where I pushed back: There's a billion-dollar disaster happening almost every day somewhere in the world. Wildfires in California. Cyclones in Southeast Asia. Floods in Europe. Drought across the American Southwest. A global organization with offices, employees, data centers, and suppliers spread across continents isn't insulated from any of this. You're exposed to all of it. The problem isn't that climate risk lacks velocity. The problem is that enterprise risk teams are looking for it in the wrong place. They're waiting for "climate" to show up as a line item. But it's already showing up — in supply chain disruptions, in facility closures, in employee safety incidents, in business continuity failures. It's just not labeled "climate." So it doesn't make the top 10 enterprise risks. It doesn't get a board presentation. And companies keep getting blindsided by events that were entirely predictable. Climate risk has plenty of velocity. It's hitting companies every quarter. The question is whether your risk framework is designed to see it.