11 July 2025

Avoiding the unmanageable by adapting to the inevitable

The Earth has warmed by at least 1.3°C compared to the pre-industrial era on a global scale, which corresponds to +1.7°C for France.

The year 2024 is the first to record an average temperature exceeding 1.5°C above pre-industrial levels.

This average increase leads to numerous disruptions, including extreme temperature fluctuations and changes in precipitation patterns. Climate change is therefore already a reality.

The impacts of climate change have economic and financial consequences for organizations:

  • On operating expenses (cost of raw materials, rising insurance premiums, etc.)
  • On capital expenditures (cost of repairing equipment or buildings, cost of adaptation, etc.)
  • On revenues (business interruption due to extreme events, decreased productivity during heatwaves, reduced agricultural yields, etc.)
  • On asset value (buildings damaged by clay soil shrink-swell, landslides or floods, business relocations, etc.)

As this report illustrates, no sector is immune. To respond to climate change, two complementary approaches must be considered: mitigation and adaptation. This report provides a practical guide to help businesses adapt to climate change and reduce its consequences.

The first step is to understand and measure the impacts of climate change on the company. By analyzing the entire value chain—resources and raw materials used, buildings and infrastructure relied upon, processes in place—it is crucial to precisely identify what can be affected by climate conditions and what is sensitive to their changes.

On this basis, companies can initiate a genuine adaptation strategy.

Two key elements are essential:

First, assess the company’s specific vulnerability to the climate hazards it faces.
Second, define a governance framework for adaptation by promoting dialogue at the local level and across business units.

Once material risks are clearly understood by all stakeholders and the adaptation process is underway, businesses must identify and prioritize concrete actions.
These should include selecting adaptation measures, with a preference for nature-based solutions. Measures are prioritized based on their feasibility and effectiveness, aligned with the company’s risk profile and operational risk map.

Adaptation actions should be “no-regret” solutions—scalable and embedded in an action plan with monitoring indicators to track progress over time. The collection of these prioritized actions forms the adaptation plan.

A good adaptation plan meets three criteria:

  1. It limits the risk of maladaptation,
  2. It combines adaptation and mitigation to address both the causes and the consequences of climate change,
  3. It takes a systemic approach. A systemic approach is essential to tackle environmental challenges while considering the nine planetary boundaries.

Happy reading!

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