Climate change may present economicopportunities for insurers. (Photo: Shutterstock)

An overwhelming majority of C-suites at the world's largestcompanies say mitigating climate change impacts is now atop business priority.

In a new report, FM Global surveyed CEOs and CFOs at companiesaround the world with $1 billion or more in revenue about theirviews on extreme weather events and climate risk.

The 2020 Climate Risk Survey found more than 3 in 4(77%) CEOs and CFOs say their firms are not fully prepared for theadverse financial impact of a changing climate. Additionally, 8 outof 10 (82%) believe their companies have somewhat to no controlover such an impact on their business.

Three-quarters of respondents (76%) said their organizations aresomewhat to significantly exposed to climate risk. Floods, droughtsand wildland fires topped the list as the three exposures that"concern their companies the most" and "could most negativelyaffect their financials."

Managing hurricane season, worsening flood risks and apandemic

Heading into the most active months of hurricane season, theclimate risks for businesses are likely exacerbated by theCOVID-19 pandemic.

"The findings are concerning as hurricane and wildfire seasonsbegin in the U.S. and the threat of flood is on the rise globally,combined with the challenges the pandemic has placed on businesses– many of which are fighting to survive and recover," saidKatherine Klosowski, vice president, manager of natural hazards andstructures at FM Global.

"The combination of being underprepared for naturalcatastrophes, volatility in financial markets, and the threat of aneconomic recession couldn't come at a worse time for manycompanies," added Klosowski.

FM Global says its survey results build upon the World EconomicForum's report from earlier this year, released just before thepandemic struck, that declared extreme weather events, plus thefailure of climate change mitigation and adaptation, as top risksover the next 10 years.

Fortunately for companies, Klosowski says most lossesfrom climate-related events are preventable with the rightpreparation and resiliency tactics.

However, Klosowski adds, "The challenge many companies will faceis adequately preparing for such events if stay-at-home ordersremain in place, which could exacerbate the impact climate-relatedevents have on an already fragile bottom line."

Related: 

• Dealing with wildfire risk during apandemic
• When climate change makes wildfires worse, Americanssuffer