Market Insight: The Heat Economy – How Solution Providers Can Power Adaptation In A Hotter World

Report

Climate Financial Data & Analytics

Felicity Laird

Ryan Skinner

21 Nov, 2025

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Executive Summary

The world is warming faster than scientists anticipated, and heat, an under-recognized but escalating chronic physical risk, is already disrupting lives and economies. Despite the clear need for adaptation, most sectors remain under-prepared. Verdantix assessed 24 firms across 12 sectors to evaluate heat risk disclosure and adaptation efforts, revealing wide variation in maturity based on exposure. This growing risk presents a strategic opportunity for vendors and service providers, to support both short- and long-term responses. In the near term, firms need workforce safety and energy resilience technologies; over time, they will require heat-resilient retrofits and systematic diversification to embed heat risk into enterprise resilience.

Table of contents

Summary for decision-makers

What happens to global markets when 1.5°C is beyond reach?

Extreme heat is a triple threat – putting public, productivity and profits at risk

Firms need help planning tactically and strategically for a hotter world

Businesses are expecting a warmer future, ranging from 2.0°C to 4.8°C, but are failing to tell the full story

Firms require tailored heat risk strategies – one size does not fit all

Technology and service providers have a critical role to play in delivering heat resilience solutions

Tech vendors should immediately position tech where heat exposure is highest

Service providers and vendors must collaborate to shape long-term heat adaptation strategies

Table of figures

Figure 1. Sector-level preparedness against heat stress

Figure 2. Heat stress impact matrix by sector

Organisations mentioned

About the Authors

Felicity Laird

Principal Analyst

Felicity is a Principal Analyst at Verdantix, where she helps financial institutions and technology vendors navigate the evolving climate finance data and analytics landscape....

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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...

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