Sustainability in Action is our monthly blog series, featuring a curated selection of new and relevant sustainability insights and actionable recommendations for leaders to drive climate action and growth. In this edition, our McKinsey Sustainability experts Hamid Samandari and Alexis Trittipo discuss climate adaptation.
Most organizational decisions are still made under the implicit assumption of a stable climate, which had held true from the dawn of the human civilization till the last century. Climate change, however, has been upending that reality and is poised to do so even more on the current emissions trajectory.
“How should I best integrate both the current and future levels climate change and its impact in my decision making? What capabilities do I need to build to better assess and address the those on my organization over time? How will I continue to have the ability to operate and run my organization in a future climate that looks different than the climate of today?"
These are the questions we wish more organizations were asking. For until climate adaptation and resilience is really embedded in the way strategic choices are being made in both the public and private sectors, we're not talking about it nearly enough.
Adaptation refers to managing both the already-visible consequences of climate change and those that are already baked in or highly likely to emerge. These are expected to vary by geography, hazard type, and over time. Adaptation involves understanding potential risks under various scenarios, and developing and implementing robust plans to address them.
While many organizations, countries, and cities have made progress in adaptation efforts, there is still more to be done, both by way of taking a more comprehensive, forward-looking view in planning and building the capacity to respond.
And by embracing adaptation, organizations can better prepare for challenges of other types. In fact, adaptation is not solely a risk management strategy. It also presents strategic opportunities for organizations, allowing them to open up avenues for growth and competitive advantage.
For more insight into this topic, visit the links below.
What can companies do to build their ‘adaptation muscle’?
Sustained action for adaptation would be needed across all the ten dimensions described in our recent analysis. As a starting point, decision-makers should consider the following:
- Conducting climate risk assessments under various scenarios to determine the conditions that could lead to disruptions and losses
- Determining the best adaptation levers and tools for the specific risks you face
- Communicating your approach and findings within and outside the organization
- Taking no-regrets adaptation actions today and building the right capabilities for more, while there is the runway to do so
Recommended McKinsey Sustainability Insights on Adaptation
Ten key requirements for a systemic approach to climate adaptation
Civilization has been built on a foundation of climate stability that no longer exists. Adaptation is now as important as mitigation, and so is understanding its interrelated requirements.
Paving the way to resilience: Strengthening public sector adaptation planning and execution
Increasing resilience to climate change requires a more systematic response than ever before. Governments and public entities play a central role in defining, enabling, and executing it.
Climate change adaptation and security: Two sides of the same coin
Tom Middendorp, chair of the International Military Council on Climate and Security, discusses the link between climate change and security and the important role that the defense sector can play.