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In a new report, the World Economic Forum (WEF) has stated that businesses must take action now to tackle climate change.
In its latest Global Risks Report, the WEF suggested that most businesses are ‘ill-equipped to address climate change risk’.
The report also stated that many firms ‘may not be planning for the physical and financial risks that climate change may have on their activities and across their value chains’.
The WEF surveyed business leaders and found that none of their top ten business risks are environmental in nature. The Forum urged businesses to ‘reassess assets, reconcile trade-offs and develop new capabilities to move towards a more sustainable model’.
Commenting on the issue, Peter Giger, Group Chief Risk Officer at Zurich Insurance Group, said: ‘It is critical that companies and policymakers move faster to transition to a low carbon economy and more sustainable business models. We are already seeing companies destroyed by failing to align their strategies to shifts in policy and customer preferences.’
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