How to Perform a Climate Risk Assessment for Your Business
Weather patterns are changing, and that can affect businesses in many ways — from flooding or fires that damage buildings, to temperature shifts that change customer habits or disrupt supply chains. Doing a climate risk assessment helps your business spot problems early and make smart choices. Staying prepared can save money and keep your business on the right path, while also playing a part in building a planet-positive future.
To get started, you don’t need to be a climate expert. Begin by thinking about how weather and climate might affect your daily operations. For example, does your business rely on shipping? What happens if roads shut down from heavy rain or snow? Do you grow food? How would a dry season or heatwave change your crop supply? Just asking these questions can already put you on the right track.
Next, make a list of your key resources. This includes your workers, suppliers, equipment, power sources, and buildings. Then, consider how extreme weather events could interfere with each one. Would you lose customers if your store closed for a week due to a storm? Could your suppliers still deliver materials if there was a flood or a long power outage?
Now, talk to others. Your employees, contractors, and partners can be a great source of insight. They may point out risks you hadn’t thought of – or suggest simple solutions. Maybe someone knows that your delivery routes often flood, and someone else suggests a different schedule or route.
Once you’ve identified the risks, think about what you can do now. You might decide to move key files to cloud storage so they’re safe even if your office is damaged. Maybe it's worth keeping a backup power source or checking with suppliers about their emergency plans.
Last but not least, keep updating your assessment. Climate patterns can shift over time, and so can your business. Set a reminder to review your plan at least once a year.
Taking small, simple steps to think through climate risks doesn't need to be complicated. It just takes paying attention and asking the right questions. Your business may be stronger for it, and you’ll be setting an example that helps others make thoughtful choices too.