Floods, droughts and heatwaves are no longer just a concern for environmentalists. The effects of climate change are becoming increasingly tangible, with growing awareness among companies and investors about the potential impacts.

In 2023, global economic losses from extreme weather topped 290 billion dollars. These are not abstract numbers: think of factories shutting down due to flooding, failed harvests or supply chain chaos. The indirect costs - lost productivity and broken logistics - are often even higher.

Overlooking the signals comes at a cost

Most people have heard of “mitigation”: cutting CO₂ emissions to slow climate change. Current evidence suggests that even if emissions stopped today, the planet would keep warming for decades. That’s why “adaptation” is now just as urgent: making companies, cities and infrastructure more resilient to extreme weather. This means higher dykes, smarter water storage, heat-resistant buildings and crops that can survive drought. It’s not a green luxury, it’s economic self-defense.

What this means for business

Companies with a diverse range of business assets, such as factories, infrastructure, and farmland, are at risk the most. But any business with a complex supply chain can be hit when a supplier or transporter is knocked out by flood or drought.

This is not theory: a major carmaker recently had to stop production because a supplier was flooded, with immediate impact on profits and share price. Incidents like this hit company value straight away.

Opportunity for companies that act

These challenges also create opportunities for companies offering real solutions. The engineering company Arcadis helps cities and regions worldwide defend against floods and drought, designing and reinforcing dykes, creating smart water buffers and integrating climate risks into urban planning.

The building materials provider CRH delivers innovative construction products and water management solutions, like permeable paving and temporary water storage systems that help cities handle heavy rainfall and prevent flooding. Veolia, global leader in environmental services, invests in water recycling, efficient purification and protecting infrastructure against drought and floods. These are not vague sustainability stories, but concrete innovations that add value and prevent losses.

Investing in resilience pays off

Spending on climate resilience isn’t just a cost, it’s smart business. Up to 95% of coastal flood damage can be avoided with timely investment in protection.

Recent research from Standard Chartered, KPMG and UNDRR suggests that every euro spent on resilience typically delivers four to twelve euros in economic benefit. The gains are local and visible: less damage, fewer disruptions, more certainty for companies and consumers.

Future-proofing from the inside out

At Mpartners, we invest in companies that make their business models future-proof — not because they have to, but because it pays. We focus on firms that provide solutions for an economy that can take a hit. We are already invested in companies like Arcadis, CRH and Veolia, because they prove that innovation and returns go hand in hand.

Climate change is no longer just a moral debate. It shows up in the numbers, in operations and in the value of investments. Who ignores the climate now, finds it on the balance sheet later.