KUALA LUMPUR: Only 20 per cent of businesses are prepared for climate disasters worldwide, reflecting an alarming gaps in organisations' preparedness to address the risks, according to Association of Chartered Certified Accountants (ACCA).
ACCA said its latest report, "Weathering the Storm: Building Resilience Against Climate Disruptions', revealed that businesses worldwide are underprepared for climate-related disasters, with outdated business continuity plans failing to address the rising frequency and severity of such disruptions.
The report's data collected from ACCA Global Economic Conditions Survey, involving over 600 finance professionals around the world, also highlighted that only 17 per cent of businesses rehearse their responses to major disruptions, while 25 per cent have no mechanisms in place to build resilience.
ACCA head of sustainability Emmeline Skelton said Spain's recent floods and intensifying hurricanes worldwide are harrowing reminders that climate change is not a distant threat but one that is reshaping lives and communities right now.
She suggested that organisations must make climate adaptation a priority, not only to safeguard their operations but to protect the people and places at risk.
She added that rising temperatures, more intense rainfall, and swelling sea levels make the evidence unmistakable and hence, people must act now to build resilience and mitigate further harm.
"The escalating environmental threats demand comprehensive preparation measures. Yet our survey reveals that climate adaptation planning is still not receiving the urgent attention it requires. It's time for organisations to take decisive action to protect both their future and the communities they serve," she said in a statement today.
Skelton further commented that organisations with a digital-first approach cannot overlook climate risks affecting their remote workforce.
"To ensure resilience, forward-thinking organisations need to proactively support remote workers with measures like power backups and health monitoring to stay prepared in an increasingly unpredictable climate," she said.
The report revealed that power outages topped the list of climate-related disruptions in Africa (54 per cent of respondents), while North America's leading worries included supply chain breakdowns (41 per cent) and employee health issues (39 per cent).
It also highlights the pivotal role of chief financial officers and finance teams in driving climate resilience through risk-based planning and sustainable business strategies.
By championing transparency in emissions targets and transition plans, ACCA said finance professionals are critical to reducing carbon footprints and advancing netzero goals.
ACCA noted that the findings serve as a critical lesson for businesses in Malaysia, where climate-related disruptions such as seasonal floods, landslides, and extreme heat are becoming more frequent.
While the report highlights global insights, it said that Malaysia can draw valuable lessons in adopting robust climate risk assessment frameworks and building organisational resilience.
ACCA senior policy manager for Asia Pacific Sharath Martin said Malaysia, where the economy is heavily dependent on sectors like agriculture, manufacturing, and tourism, climate resilience must be an urgent priority.
"Businesses need to recognise that their ability to adapt and thrive amid climate disruptions will determine their survival and the well-being of the communities they operate in."
"By leveraging tools and strategies outlined in this report, Malaysian organisations can proactively safeguard their operations and contribute to a sustainable future," he said.