Global execs say firms not fully prepared for climate change

Seventy-seven percent of CEOs and CFOs at the world’s largest companies say their firms are not fully prepared for the adverse financial impact of a changing climate, FM Global reported Tuesday.

An even higher number, 82%, said their companies have somewhat to no control over such an impact on their business.

Just over three-quarters of respondents, 76%, said their organizations are somewhat to significantly exposed to climate risk, with floods, droughts and wildland fires the three exposures that “concern their companies the most” and that “could most negatively affect their financials,” FM Global said.

However, companies and organizations can manage and mitigate such risks, the insurer said.

“Most losses stemming from climate-related events are preventable, and loss prevention can help preserve a company’s value and resilience, especially during the pandemic,” Katherine Klosowski, vice president, manager of natural hazards and structures, FM Global, said in the statement.