Business on the Edge: Building Industry Resilience to Climate Hazards

The report quantifies the potential for massive fixed asset losses due to climate hazards, identifying extreme heat as the primary driver. It warns that these losses could significantly depress corporate earnings, particularly in the utilities, telecommunications, and travel sectors, while highlighting the systemic risks posed by Earth system tipping points and the need for integrated adaptation strategies across five key socio-economic systems.

• Climate hazards are projected to cause annual fixed asset losses for listed companies ranging from $560 billion to $610 billion by 2035, potentially increasing to $1.1 trillion by 2055.
• Extreme heat is the most significant climate hazard for fixed assets globally, accounting for 72-73% of potential losses over the next decade, estimated at $404-448 billion annually by 2035.
• The impact of these losses on profitability is severe; the average listed company could see a drop in annual earnings of 6.6-7.3% by 2035, rising to 8.1-10.1% by 2045.
• Certain capital-intensive industries face disproportionate risks; by 2035, utilities, telecommunications, and travel sectors could experience earnings shocks exceeding 20%.
• Five Earth systems are identified as being at imminent risk of crossing irreversible tipping points: the Greenland ice sheet, West Antarctic ice sheet, warm-water coral reefs, Labrador & Irminger Seas convection, and boreal permafrost.
• The collapse of the Atlantic Meridional Overturning Circulation (AMOC) could shift rain belts toward the equator, causing unprecedented droughts and fires in tropical forests like the Amazon.
• The technology sector faces critical resource risks, with up to 70% of critical mineral extraction potentially exposed to droughts by 2050, and AI data centres significantly increasing water demand.
• Healthcare systems are increasingly vulnerable, with the risk of hospital damage from extreme weather increasing by 41% since 1990, and 1 in 12 hospitals globally at risk of shutdown by 2100.
• The financial services sector faces systemic risks, including the potential for 'insurance deserts' where insurers withdraw from high-risk areas, and the overvaluation of US residential properties in flood-risk areas by $121-237 billion in 2023.
• The report recommends that business leaders activate specific enablers within 24 months, including auditing core capabilities for resilience, integrating climate risk into all capital investment decisions, and partnering with the scientific community.

APA

World Economic Forum (2024). Business on the Edge: Building Industry Resilience to Climate Hazards. https://reports.weforum.org/docs/WEF_Business_on_the_Edge_2024.pdf

Chicago

World Economic Forum. Business on the Edge: Building Industry Resilience to Climate Hazards. 2024. https://reports.weforum.org/docs/WEF_Business_on_the_Edge_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Business on the Edge: Building Industry Resilience to Climate Hazards |date=December 2024 |url=https://reports.weforum.org/docs/WEF_Business_on_the_Edge_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024business, author = {{World Economic Forum}}, title = {{Business on the Edge: Building Industry Resilience to Climate Hazards}}, institution = {World Economic Forum}, year = {2024}, month = dec, url = {https://reports.weforum.org/docs/WEF_Business_on_the_Edge_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }