Yes - climate adaptation can require investment. The construction of flood protection systems, the renewal of ventilation systems or the adaptation of sewerage systems are not trivial matters. And yet the crucial question is not: How expensive is climate adaptation? But rather: How expensive is it not to adapt to climate change?
Costs have been incurred for a long time - they are just not recognised as such
Many companies are already paying for failing to adapt to climate change. These costs do not appear directly on the balance sheet - they are hidden in longer operating downtimes, customer losses, damaged facilities, missed orders and falling productivity. However, these risks will threaten the existence of the company in the near future at the latest.
By 2021 alone, climate change-related losses in Germany will amount to 145 billion euros. And the momentum is growing.
When the rain comes: the example of INTERSPORT Höppner
On 12 July 2024, a storm hit Coesfeld in Münsterland particularly hard. The sales area of the family business INTERSPORT Höppner was completely flooded - just two years after extensive modernisation. It took eight months before the shop could be reopened. The economic damage went far beyond material damage.
Source: INTERSPORT Newsroom
Heat stress - the silent cost factor
The economic consequences of heat have hardly been systematically recorded to date. Yet a study by Allianz shows that a day over 32 degrees causes costs similar to half a day of industrial action*. Why?
- Heat-sensitive processes come to a standstill.
- Outdoor work becomes a health hazard.
- The performance of co-workers drops by up to 9% at 30 degrees.
- Cooling requirements - and therefore energy costs - increase dramatically.
Projections show: Without adaptation, cooling costs could rise three to eightfold in the future**.
Insurance? - Is not always possible.
It is true that some climate damage (e.g. caused by heavy rain or hail) can be insured. However, premiums are constantly rising - and frequent claims can lead to exclusion from insurance cover. Losses caused by heat? Not insurable at all.
The good message: Adaptation doesn't need to be expansive
Not every measure cost thousands of euro. Strategic, planning and organisational measures in particular are often associated with manageable effort and very low costs - yet they can already be very effective.
Examples:
- Location decisions when buying or renting: Is your company site located in a depression with an increased risk of flooding? A location analysis can avoid high follow-up costs.
- Building planning: Use upcoming construction measures or renovation and upgrading to integrate climate-resilient design elements - e.g. raised entrance thresholds, shading systems or passive ventilation.
- Organisational matters:
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- Flexible working hours during heat waves
- Training for facility management and employees on correct ventilation and shading
- Changed break schedules, offering cool break spots and drinking water
In conclusion: Denying climate adaptation is the more expensive decision
Those resisting to act will pay - for immediate damages, but also through reputational damage, operational losses and future risks. And those who only react after a damage has appeared have already lost many of the more cost-effective options.
So what is there to wait for?
Climate adaptation is not an option - it is an economic necessity. Let's plan your first steps together.
*Allianz ResearcH: Global boiling: Heatwave may have cost 0.6pp of GDP. 2023
**Umweltbundesamt: Bewertung klimawandelgebundener Risiken: Schadenspotenziale und ökonomische Wirkung von Klimawandel und Anpassungsmaßnahmen. 2020
More myths:
#1: More climate adaptation action? We have already taken energy-saving measures, haven't we?
#3 We will not really be affected by the consequences of climate change(?)
upcoming:
- We have other priorities at the moment and can still adapt to climate change later on.
- We have created flowering meadows and planted trees. We have taken precautions.
- The consequences of climate change will lead to heavy burdens and restrictions.