Jakarta — Despite growing awareness of climate hazards, most organisations are failing to invest adequately in adaptation, leaving critical gaps in resilience strategies, according to Marsh’s 2025 Climate Adaptation Survey.
The group said in a statement on Friday, September 19, the global survey of more than 130 risk managers found that while 78% of companies have experienced climate-related impacts such as flooding, extreme heat, and water stress—and 74% reported asset losses or disruptions—only 38% conduct detailed climate risk assessments. Alarmingly, 22% said they do not assess future climate impacts at all.
The report also highlighted stark regional differences. Asia recorded the highest proportion of respondents affected by extreme weather events in the past three years (73%), followed by India, the Middle East and Africa (68%), and Canada (67%). Marsh warned that organisations are overlooking system-wide risks, such as supply chain and infrastructure dependencies, that could magnify the effects of climate shocks.
Funding constraints emerged as another key barrier. Forty per cent of respondents said their organisations lack sufficient resources for effective climate adaptation. Business leaders cited competing corporate priorities, limited understanding of future climate scenarios, and resource allocation challenges as obstacles.
“Our research shows organisations consistently underinvest in climate adaptation relative to the severity of their identified risks,” said Amy Barnes, Head of Climate and Sustainability Strategy and Global Head of Energy & Power at Marsh. “There is clearly an urgent need for organisations to adopt a holistic approach to climate risk, integrating asset-level and system-level assessments, and embedding climate adaptation into enterprise risk
management frameworks.”
Marsh warned that as climate hazards continue to intensify, proactive resilience planning will be critical to safeguard assets, protect revenues, and ensure long-term business viability. (nsh)
Banner photo: Tidal flood in the parking lot of Tanjung Emas Port, Semarang, Central Java. BanGhoL/shutterstock.com
