Global Corporate Survey 2023: Climate Risk Solutions Buyers’ Priorities And Preferences
31 Jul, 2023
Access this research
Access all Emerging Risks content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
This report, based on a global corporate survey of senior climate risk and net zero executives, provides insight into firms’ priorities regarding climate risk solutions. Climate leaders expect greater losses from transition risks – particularly brand reputation risk and climate policy change – than physical risks. Further, organizations currently lack the knowledge and expertise necessary to use climate risk modelling and analysis in strategy development. Software vendors can use these findings to inform their market strategy, as well as the development of their climate risk digital solutions.
Global survey reveals corporate priorities regarding climate risk
Firms expect transition risks to be more costly than physical risks over the next three years
Each industry’s assets, experiences and market forces explain transition risks
Expected losses from physical risks correlate with recent regional experiences
Limited expertise and knowledge are challenges for firms
Opportunities for climate risk software vendors
One in four buyers will increase spend on climate risk software by more than 10% in 2023 and 2024
Firms expect transition risks to be more costly than physical risks over the next three years
Each industry’s assets, experiences and market forces explain transition risks
Expected losses from physical risks correlate with recent regional experiences
Limited expertise and knowledge are challenges for firms
Opportunities for climate risk software vendors
One in four buyers will increase spend on climate risk software by more than 10% in 2023 and 2024
Figure 1. Survey respondents come from 15 industries
Figure 2. Map of survey respondent locations
Figure 3. Climate risks included in the survey
Figure 4. Firms expect greater losses from transition risks than from physical risks
Figure 5. Transition risks expected to cause more than $100 million in losses within each industry
Figure 6. Transition risks expected to cause more than $50 million in losses within each industry
Figure 7. Regional concern for physical risks reflects historical and projected impacts
Figure 8. Firms lack internal expertise and do not know how to map climate data to business impacts
Figure 9. For each risk, between one sixth and one quarter of respondents do not know the financial impacts
Figure 10. Over one quarter of respondents will increase spending on climate risk software or invest for the first time
Figure 11. One in three firms use internally developed software for each use case assessed
Figure 12. Firms are interested in software for climate scenario modelling, portfolio and investment planning tools, and TCFD reporting capabilities
Figure 2. Map of survey respondent locations
Figure 3. Climate risks included in the survey
Figure 4. Firms expect greater losses from transition risks than from physical risks
Figure 5. Transition risks expected to cause more than $100 million in losses within each industry
Figure 6. Transition risks expected to cause more than $50 million in losses within each industry
Figure 7. Regional concern for physical risks reflects historical and projected impacts
Figure 8. Firms lack internal expertise and do not know how to map climate data to business impacts
Figure 9. For each risk, between one sixth and one quarter of respondents do not know the financial impacts
Figure 10. Over one quarter of respondents will increase spending on climate risk software or invest for the first time
Figure 11. One in three firms use internally developed software for each use case assessed
Figure 12. Firms are interested in software for climate scenario modelling, portfolio and investment planning tools, and TCFD reporting capabilities
About the Authors
Emma Cutler
Principal Analyst
Emma is a Principal Analyst at Verdantix, with a current research agenda focusing on solutions for climate risk management. She has a background in simulation and statistical …
View Profile
Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc…
View Profile