Resilience is key to climate action in a disrupted world. Here's why

Following the Paris Agreement, corporate enthusiasm for climate action surged, with net-zero commitments and the energy transition taking a central role in both government and business agendas. However, political shifts and implementation challenges have slowed that momentum. Concerns about the feasibility of some energy transition targets have intensified, driven in no small part by resistance from fossil fuel industries and growing public scepticism in many regions, where populists have framed ambitious environmental promises as unrealistic or out of touch with voters' concerns.

The geopolitical landscape is undergoing seismic shifts, creating new economic and strategic pressures. Rivalries between major powers have disrupted long-established supply chains, introducing unpredictability. Companies are now forced to adapt, often at significant costs. Longstanding investments in existing supply chains can become obsolete as political winds shift. This forces businesses to reassess how to balance risk management with sustained climate action in an increasingly fragmented global economy. For many, navigating these global tensions while meeting environmental obligations across multiple jurisdictions has become exceptionally challenging.

In this volatile landscape, resilience is emerging as a helpful lens for businesses and institutions to navigate uncertainty. It is not a direct replacement for environmental, social, and governance (ESG) strategies. Rather, it offers a framework for anticipating and adapting to a wide range of disruptions.

This shift is not abstract. Increasingly severe weather events – hurricanes, heatwaves, and floods – are causing widespread disruptions to global operations. These events expose vulnerabilities in supply chains, drain resources, and damage corporate reputations. They are also prompting questions about the viability of risk mitigation strategies that overly rely on insurance-based business models.

At the same time, embracing resilience also means revisiting longstanding, unresolved dilemmas over the so-called nexus issues – the interlocking climate and resource security challenges over energy, water, food, and minerals.

Resilience provides a valuable framework for bridging the climate challenge with the nature and biodiversity agenda as well. It promotes integrated solutions such as ecosystem restoration, sustainable land use, and the protection of natural habitats to mitigate climate impacts.

A focus on resilience can meaningfully shift the corporate innovation agenda. Rather than just responding to immediate risks, resilience challenges businesses to rethink their long-term strategies – particularly around climate and resource issues. Innovation then becomes about more than improving products or processes; it’s about creating systems that are adaptable to an uncertain future. This shift could drive advancements in infrastructure designed for long-term sustainability, including clean energy, circular economy models, and carbon capture technologies – aligning operational stability with environmental goals.

A focus on resilience could enable corporate leaders to broaden their focus from solely shareholder value to a wider set of stakeholders. By addressing the needs of employees, consumers, and local communities as well as broader civil society, companies can build trust and legitimacy during a time of heightened scrutiny. This is not merely a defensive posture; it also creates pathways for long-term value creation and innovation.

For businesses fatigued by the polarizing debates surrounding ESG, resilience could act as a grounding, unifying concept. It shifts focus away from controversy while achieving environmental and social objectives necessary for sustainable capital management. In essence, resilience allows companies to respond effectively to immediate challenges without losing sight of the broader climate/environmental imperative.

Many companies are already moving in this direction. The refreshed focus on resilience can be seen through concrete steps taken by businesses. These include diversifying suppliers, building localized production capacity that delivers added value, and raising the environmental and social performance of their goods and services. They are also reducing waste and inefficiencies – strategies that safeguard operations and protect employees, customers, and communities during crises.

As the world grows increasingly volatile, resilience must transcend its status as a buzzword. It must become a genuinely pragmatic and forward-looking approach to corporate climate and energy transition strategy. By embedding resilience into their operations, companies can do more than protect themselves; they can contribute meaningfully to global efforts to combat climate change, protect nature, and promote sustainable, equitable growth.

The global landscape is increasingly multipolar, marked by economic competition and geopolitical fragmentation. The idea of a "level playing field" is fading. Companies must focus on future-proof strategies aligned with climate and sustainability goals. Companies cannot afford to wait for clear policy signals. They must push forward, aligning their strategies with societal demands and environmental imperatives.

Public support for corporate climate advocacy is strong, as recent GlobeScan research shows (see graphic above). Businesses have both a strategic and moral mandate to act.

Resilience is no longer a buzzword – it's essential. As global tensions and climate risks grow, businesses must adapt. Building resilience protects operations and supports sustainable, inclusive growth.