Companies' Progress on Adapting to Climate Change

This research report examines the progress made by companies in adapting to the physical impacts of climate change. It is based on an analysis of 6,871 responses from the 2022 S&P Global Sustainable1 Corporate Sustainability Assessment and the adaptation and resilience plans of 130 companies. The report highlights that only 21% of companies have an adaptation plan, with less than half planning to implement these plans within the next decade. The findings indicate that many companies are not prioritizing adaptation, which may increase future adaptation costs. The report also notes that large investment-grade companies tend to be more advanced in considering the financial impacts of climate change. The analysis identifies that extreme weather events and chronic climate risks are worsening, posing potential threats to companies. It emphasizes the importance of adaptation planning and regulatory frameworks in enhancing corporate resilience to climate hazards, particularly in sectors most exposed to these risks.