Almost two-fifths (38%) of companies surveyed expect it to impact their company in the next 12 months - an increase of 11% on the previous year. The warning comes as the COP28 climate conference continues in the UAE.
1,775 Chief Security Officers (CSOs) in 30 countries at large global companies with total revenue of more than $20 trillion took part in the first-ever World Security Report.
Climate change is the third most likely security-impacting hazard to affect companies in the next year after economic unrest (47%) and pandemics (40%).
CSOs also anticipate that floods, wildfires, earthquakes, landslides and tsunamis will all increase.
Anticipating potential threats
Noah Price, International G4S Academy Director said: “Climate change and natural disasters pose a significant threat to a company's physical security operations. Most companies tend to be reactive, addressing security threats only after they've struck. It’s business critical that CSOs anticipate potential threats and prepare for them. No action or just reaction is not an option.
“Being reactive often results in significantly higher financial and reputational losses compared to the costs of implementing robust, preemptive security measures. Planning will ensure businesses are more resilient, safeguarding people and assets.”
Contingency planning, investing in technology and diversifying supply chains from climate change disruptions are three examples of the actions businesses can take.
One of the most pragmatic security plans G4S advises is climate-specific risk assessments of places of work, operational locations and where employees reside. This should be regularly reviewed and updated.
Robust infrastructure investment
Businesses should invest in infrastructure that can withstand extreme weather events. Buildings that are reinforced, have flood protection systems, and fire-resistant materials will lessen the impact.
Predictive and aerial technology will be key to assess the risks, damage and enable key strategic decision-making.
Over the next five years, 42% and 39% of World Security Report respondents are planning to use AI and machine learning, and IoT devices in their physical security operations, respectively. Almost a quarter (24%) will use drones and unmanned aerial systems (UAS)
AI and machine learning can be used for predictive analytics when looking at climate-related risks. For instance, AI can analyse vast amounts of data from past weather patterns, satellite imagery, and climate models to predict natural disasters with greater accuracy, enabling timely preventive measures.
Concluding, Price said: “Businesses have a vital role to play in reducing climate change, but also in keeping their operations running, people and assets safe, and protecting themselves from a wide-range of climate threats."