Adapting to the Impacts of Extreme Weather

When Extreme Weather Hits: Why Businesses Can’t Afford to Ignore It

Extreme weather is no longer a distant threat, it’s a pressing business risk with profound consequences:

The UN Office for Disaster Risk Reduction (UNDRR) reports that total global disaster costs now exceed USD 2.3 trillion annually when accounting for indirect and ecosystem impacts, nearly a tenfold increase from 1970 – 2000 levels.

The World Economic Forum, in collaboration with the University of Exeter, warns extreme weather could cause USD 560–610 billion in fixed‑asset losses annually by 2035, hitting sectors like utilities, logistics, and telecoms the hardest, and cutting up to 7% of average company earnings.

A 2025 Gallagher survey found 69% of business leaders view severe weather as a top operational threat, yet only 30% have flood insurance. Meanwhile, 57% are exploring site relocation or resilience upgrades to mitigate exposure.

These figures reflect more than just rising costs; they signal a fundamental shift in the risk landscape, where extreme weather translates directly into workforce disruption, operational downtime, and growing compliance obligations.

At International SOS, we see the daily human and business toll of nature-caused disruption. In fact, our own data shows an 80% year-on-year increase in medical alerts linked to extreme weather. Yet despite rising concern, many organisations remain underprepared.

 

That’s why we support clients in moving from awareness to action, delivering global and local Natural Hazards and Health Adaptation assessments, site-specific vulnerability analysis, crisis preparedness planning, and health-focused advisory to help strengthen workforce safety, operational continuity, and long-term resilience.