Businesses across the globe are increasingly confronting the
effects of a changing climate.
A recent study from Morgan Stanley revealed that more than half
of surveyed firms said they had faced climate-related disruptions
to their operations over the past year.
These effects included rising expenses, employee availability
challenges, and reduced earnings, said Bloomberg.
Such financial pressure is prompting many organisations to
continue with emissions-reduction efforts and climate adaptation,
even amid political uncertainty.
The report highlighted that the most common climate-related
issues were intense heatwaves and severe storms, followed by
wildfires, droughts, and coastal flooding.
In the US, Bloomberg Intelligence estimated that
nearly $1 trillion has been allocated to climate-related recovery
and resilience efforts over the past year. Local impacts are also
visible — US Census Bureau data showed that after hurricanes Helene
and Milton struck Florida's west coast last season, about
two-thirds of Tampa-area businesses surveyed experienced
weather-related financial harm.
The consequences of climate events are evident beyond the US.
This year’s Canadian wildfires disrupted oil production in Alberta,
while a major flood in South Africa in 2022 led Toyota to seek over
$360mn in compensation. In Australia, extreme temperatures have
forced the mining sector to modify operations for safety and
efficiency.
For the first time, Morgan Stanley's report assessed climate
risks in regions including the Middle East, North Africa, and South
America. In South America, nearly nine in ten businesses foresee
climate change posing a threat to their operations by 2030. Common
concerns include disruptions to raw material supply chains and the
potential need to overhaul manufacturing methods.
While businesses in the Middle East and North Africa see climate
challenges ahead, they are also the most likely to cite
sustainability as a core driver of long-term value.
In contrast, companies in North America are more likely to point
to political resistance as a primary barrier to environmental
action. One in five North American firms surveyed cited political
pushback, particularly from conservative circles in the US, as an
obstacle to their climate strategies.
As a result, some have opted for a low-profile approach to their
climate efforts — a trend known as “greenhushing” — while others
have scaled back or dropped climate targets altogether.
© 2025 bne IntelliNews, source Magazine
