The future is no longer a distant scenario
Across the world, climate-driven shocks are increasing in frequency and severity. Globally, annual economic losses from weather and climate-related events have exceeded US$300 billion for the past nine out of ten years.[1] Developing countries require at least US$310 billion per year by 2030 to adapt to climate impacts—12 to 14 times higher than current flows.[2]
These impacts are disrupting infrastructure, supply chains and communities. They are compounding existing pressures on trade, energy security and inflation, while placing additional strain on people and economies already facing significant challenges.
The disruptive climate scenarios once expected to unfold in future generations are becoming today's reality. Scientific evidence shows that these risks will continue to intensify. We must confront this reality and build resilience: the ability to anticipate, prepare for, and adapt to the shocks and stresses caused by a changing climate.
Assessing risks to preparedness
Business sits at the heart of this system. Corporate decisions influence where people work, where investment flows, how supply chains operate—and ultimately how climate risks spread through economies and how effectively those systems adapt.
While many climate risk tools exist, our research shows that businesses remain insufficiently prepared for the realities of physical climate risk. Preparedness requires understanding how climate risks affect day-to-day business decisions and whether organisations are effectively governing, managing, and responding to those risks. True resilience depends on how well companies integrate climate risks into decision-making processes, embed them within governance structures, and invest in adaptation and response capabilities.
ResilienceArc: Bringing future risk into action today
ResilienceArc is a first-of-its-kind open tool that helps assess companies’ exposure to physical risks from climate change and supports more resilient business decisions.
ResilienceArc has been developed through a collaboration between Arc, Earth Capital Nexus at the London School of Economics and Political Science, and XDI (Cross Dependency Initiative). It combines leading physical climate risk analysis, sophisticated adaptation and preparedness assessment methodologies, and resilience benchmarking.
ResilienceArc, currently in beta, is designed to support better decision-making by helping companies, investors, and policymakers identify resilience gaps, prioritise action, and track progress over time.
Only through shared knowledge, collaboration, and action can we adapt to what comes next.
Early insights
The platform currently includes resilience assessments for approximately 200 companies, asset-level physical risk profiles for 3,000 companies, and draws on a database of over 2 million assets globally.
Early analysis reveals a notable gap between climate risk exposure and organisational preparedness. Read the full insights article here.
Key findings include:
- Higher exposure is not driving greater resilience disclosure. Companies with the highest exposure to physical climate risks are no more likely than their lower-exposure peers to explain how they assess, prepare for, and respond to climate-related hazards.
- Forward-looking resilience commitments remain limited. Few companies have established robust targets or commitments linked to physical climate resilience. For example, none of the companies assessed has set a target related to surface water flooding, despite it representing a significant risk for nearly nine in ten companies.
- Supply chain risk remains a critical vulnerability. Among the approximately 200 companies assessed across all five resilience metrics, only one-third (34%) describe how they engage suppliers on physical climate risk, while fewer than 10% provide evidence of engagement with downstream value chain partners.
- Early signs of resilience are emerging. While overall resilience performance remains low, many companies are beginning to put key foundations in place. More than 90% of companies assessed conduct either climate risk assessments or environmental impact assessments across their operations and business units, providing an important basis for future resilience planning.
These findings are not surprising. Building resilience requires organisations to prepare for uncertainty. That starts with better information—understanding not only where risks exist, but also what drives preparedness and adaptation.
Building resilience together
Building resilience requires a different mindset. We cannot predict exactly how climate impacts will unfold, where the next disruption will occur, or how risks will interact. Resilience is not about having all the answers. It is about being prepared despite uncertainty.
That requires organisations, investors, and governments to understand not only what they know, but also what they do not know. And it requires collaboration, because no company, government, investor, or community can solve this challenge alone.
This is why ResilienceArc is being launched as an open platform.
It is not a finished product with all the answers. It is a foundation for collective learning, bringing together climate risk, preparedness, and resilience insights to help organisations make better decisions and strengthen their ability to adapt.
Resilience, by its nature, is an ongoing process of learning, adaptation, and action. The more we can learn together, the better prepared we will be for what comes next.
Work with us
ResilienceArc is in beta because resilience itself is a work in progress.
No single dataset, methodology, or organisation can fully answer the challenge of adapting to a changing climate. Building resilience requires diverse perspectives, shared knowledge, and continuous learning.
If you are interested in contributing, collaborating, or helping shape its future development, we would love to hear from you. Please get in touch with our team on info@arcconnect.global
See what the analysis has revealed
Early results highlight clear differences in exposure and adaptation—but also major gaps in data and disclosure. The bridging of those gaps is exactly what Arc is here to support.
See the latest insights on the analysis from our experts.
