The Heat Adaptation Economy Is Here – Are You Ready For It?

The heat adaptation economy is emerging: vendors and service providers, take note – the opportunity to lead is now.

In the upcoming Verdantix report, ‘Market Insight: The Heat Economy – How Solution Providers Can Power Adaptation In A Hotter World’, we analyse CDP disclosures from 24 firms across 12 major sectors. The findings reveal a growing – and urgent – need to adapt to a world that could be 2.5°C to 4.8°C warmer by 2100. It begs the question, are we ready for a hotter world? Here's what vendors need to know:

1. Firms with direct exposure to heat risk are actively looking for solutions.
Utilities, and firms with operations or supply chains exposed to outdoor environments, are actively investing in infrastructure and operational adaptation. Tech vendors can play a pivotal role by helping these organizations build digital roadmaps for innovation.

• Utilities face line sag (which increases wildfire risk) and a surge in cooling demand, straining grid infrastructure. Vendors offering DERMS solutions can help optimize grid flexibility and stability during peak loads. Advanced satellite and LiDAR technologies also support vegetation management. Notably, the US Army Corps of Engineers and NREL are collaborating with utilities to test machine-learning-based high-impedance fault detection.
• Outdoor industries are prioritizing worker safety. EHS providers should partner with firms in these sectors to monitor heat stress through wearables and localized heat monitoring apps. NIH, Emory University and Georgia Tech are piloting biopatches to track agricultural workers’ vitals, hydration and movement. The technology exists; the opportunity is there to be seized.

2. Businesses with indirect exposure are open to addressing heat adaptation where they see value.
Sectors such as financial services, retail, telecoms and IT show mixed maturity in assessing heat risk. While many are modelling climate futures between 2.0°C to 4.8°C, their adaptation readiness lags.

• Vendors can support these sectors by enabling broader energy and water management strategies. Energy management system solutions are critical for ‘always-on’ facilities such as data centres.
• Water stress is a growing concern, especially for telecoms and IT firms. Providers can help implement circular water management and optimize project siting based on local grid and water capacity.

3. Organizations with direct exposure but low disclosure maturity have multi-faceted needs.
Industries such as oil and gas, industrials, capital goods and ground transport acknowledge physical risks in their CDP disclosures – often within broader GRC frameworks. However, concrete adaptation actions remain limited.

• Vendors should approach these sectors as long-term strategic partners, while prioritizing near-term opportunities with directly exposed and adaptation-aware firms, as well as indirectly exposed sectors with medium maturity.

Heat adaptation is no longer optional – it’s a strategic imperative. Firms are beginning to respond, but readiness varies widely. Vendors and service providers have a timely opportunity to lead by delivering targeted solutions that address both immediate vulnerabilities and long-term resilience. The most promising near-term opportunities lie with sectors already engaged and exposed, while longer-term partnerships will be essential to support lagging industries.