A changing environment is increasing the likelihood and impact of disruptions and damage to operations, infrastructure and value chains. Acute and chronic risks from extreme heat, flooding, water stress, wildfires and other hazards are already affecting assets, workers, infrastructure, logistics, sourcing and communities. Making matters more complicated, much of the exposure lies beyond a company’s own operations, across value chains and shared systems such as land, energy and critical infrastructure. The costs are no longer hypothetical. The cost and coverage of insurance is under pressure with uninsured losses rising steeply. In the 2026 Business Breakthrough Barometer, around 45% of companies reported rising climate-related costs in their P&L over the past 12 months.

The Adapt to Rising Physical Risks Action Theme helps members get ahead of these rising risks. It is especially relevant for risk, finance, operations, procurement, strategy, sustainability and innovation teams, plus CFOs and business leaders making the case for investment in operational and financial resilience to physical risk.

Within the work of this theme, members can measure exposure, diagnose critical vulnerabilities, and identify and prioritize opportunities to co-develop and deploy resilience and adaptation solutions. It connects measurement, diagnostics and real-world solutions to provide a clearer view of where risks sit, how they might affect performance and which actions should be prioritized.

Members will co-develop a cross-sector methodology and practical diagnostic tool to map material dependencies beyond their direct operations, with a specific focus on critical infrastructure, agriculture and land use. This will promote consistent, decision-useful approaches to measure exposure, quantify value at risk, identify solutions and prioritize action.