Investment in climate adaptation on the rise
New data from Capgemini Research has revealed that climate adaptation is becoming increasingly important to businesses across the globe, with almost 70% of executives stating that they are prioritising climate adaptation to boost business resilience, up from just 56% in 2025. Despite this growing focus on resilience, only 15% of organisations have fully quantified the financial impact of climate-related risks, suggesting many businesses still lack a clear understanding of their exposure to climate disruption.
The fifth edition of the latest research, entitled ‘A world in balance 2026: the resilience reset’, draws on a survey of 2,100 senior executives across 13 countries, alongside insights from 6,500 consumers worldwide. It finds that climate disruption, resource constraints, and geopolitical volatility are leading to increased pressure on business operations, supply chains and growth. This in turn is driving companies to place greater emphasis on climate adaptation and business resilience.
Of those that have implemented measures, almost 70% say their sustainability initiatives have generated a net-positive return on investment. Two-thirds of executives (64%) say sustainability investments have boosted sales, up from 47% in 2025, and 74% acknowledge that sustainable practices have enhanced their brand equity.
The research suggests that perceptions of sustainability are evolving, shifting away from compliance and reporting towards resilience, business continuity and securing access to critical resources. Almost two-thirds of executives identify energy and critical resource security as a key driver of sustainability investment. Further, more than 7 in 10 say that securing access to critical resources (including energy, water, and materials) now has greater influence on sustainability decision making than emissions reduction targets.
In response, 83% say that their organisation will increase climate adaptation spending over the next 12-18 months. This investment is also helping organizations manage business disruption, as nearly two-thirds of executives from manufacturing or asset-intensive sectors say these investments have improved operational efficiency under supply constraints, while slightly over half say they have enhanced their ability to anticipate and respond to operational and supply-chain disruptions.
Cyril Garcia, Global head of Sustainability services and Corporate Responsibility at Capgemini said: "It is encouraging to see organisations prioritise adaptation and resilience for sustainable growth. But as climate and political risks evolve, organisations must continue to embed sustainability into their core business strategy and day-to-day operations."[i]
Climate resilience increasingly important to British business
Climate resilience is also rising up the agenda for UK businesses. Last month Barclays reported that UK firms are ramping up investment in the measure as extreme heat becomes a business risk.
In the latest Business Prosperity Index[ii], Barclays found that six in ten UK businesses are looking to strengthen climate resilience as extreme heat becomes a more frequent operational challenge. The report also revealed that just under two-thirds (60%) have increased investment, or are considering doing so, to adapt to extreme heat.
Additionally, almost one in four businesses (37%) have increased investment to adapt to extreme heat, while a further 23% are considering doing so. The most common investment priorities include cooling and ventilation systems (28%) and energy efficiency measures (23%). At the same time, businesses are also changing their ways of working during periods of hot weather. Just under a third of companies (28%) said that they are introducing employee wellbeing measures such as additional breaks, while a further 23% said they are offering flexible or remote working, and 21% claimed that they are adjusting working hours.
The research also suggests that rising temperatures are having broader economic impacts, with consumer spend data showing how changing weather patterns are influencing consumer behaviour, purchasing decisions and customer expectations. UK adults identified 24.6°C as their ideal summer temperature, 13.1°C lower than 2026's record high, while consumers said 25.1°C is the maximum temperature they would be comfortable shopping in. Barclays argues that for businesses, these findings highlight the importance of considering how changing customer behaviours, workplace environments and operational requirements may shape future investment decisions.
The real risk may no longer be failing to reduce emissions, it may be failing to adapt operations to a changing climate.
References
[ii] UK firms ramp up climate resilience investment as extreme heat becomes a business risk
