MSCI reveals a major shift: companies are integrating climate risk into their financial decisions.

New report on business resilience: Large groups are integrating climate risk into their accounts and decisions

The Corporate Resilience Survey 2025 from MSCI confirms a profound transformation: climate resilience is now a strategic and financial pillar of business performance. More than 80% of the organizations surveyed have been directly affected by extreme events in the past five years, and the vast majority are now incorporating physical risk into their financial decisions. A structural change is underway: resilience is no longer a CSR issue; it is an economic and governance challenge.

Risks have become systemic

Over 80% of the companies surveyed report having been directly affected by extreme climate events over the past five years. The most cited phenomena are violent storms (62%), extreme heat (49%), and flooding (47%).
These disruptions result in increased operational costs, damage to infrastructure, and a decline in revenue, but also have impacts on the health and safety of employees: "The management of physical risk is now played out on the ground – in factories, warehouses, retail locations, and even in boardrooms." — MSCI Institute

Physical risk becomes a financial risk

 The study reveals that 85% of companies estimate their potential losses related to climate-related hazards, and 94% have engaged in or completed site-specific risk analyses.
These assessments rely on short time horizons: 68% of companies focus their evaluations on the next 2 to 5 years, demonstrating a pragmatic approach centered on immediate risks.

This integration of climate risk into financial decisions confirms a strong trend: physical risk is now recognized as a financial risk. Companies most exposed to events such as hurricanes or flooding exhibit a higher cost of capital, while those that have invested in resilience obtain better insurance and financing conditions.

Increased governance structure

Climate resilience extends to the highest levels of governance:

• 76% of companies have a formal framework for managing physical risk;

• 61% link executive compensation to performance in resilience;

• The tools used range from real-time monitoring to climate simulation models.

 This formalization reflects a shift from a compliance approach to a strategic integrated climate risk management strategy, often jointly managed by risk, operations, and finance departments.

 Who participated in the survey?

 The panel of the Corporate Resilience Survey 2025 includes 550 respondents from 15 markets (Americas, Europe, Middle East, and Asia-Pacific).

The majority of companies are large:

• 67% report revenues exceeding $1 billion,

• 27% between $250 million and $1 billion,

• only 6% generate less than $250 million in revenue.

 The functions represented are mainly operational (53%), followed by financial and risk management (27%), then sustainability/ESG (13%).

 This low representation of small businesses is a critical point: they are often most exposed to physical risks since they often depend on a limited number of sites, have fewer financial levers (negotiation with insurers, diversification of suppliers), and limited means to manage risk.

 Nevertheless, the fact that engagement starts with large groups is consistent with dynamics observed in other financial areas: management of currency, interest rate, or commodity risks initially emerged with large companies before gradually spreading to SMEs and mid-sized enterprises. One can therefore expect a similar ripple effect on climate risk management and investment in resilience.

Investing in resilience: a winning bet

Companies are no longer just measuring their exposure: they are taking action.

• 82% report a positive return on their resilience investments,

• 67% have seen their insurance conditions improve,

• 68% note an increased interest from investors.

 The strategies adopted combine three levers:

1. Engineering solutions (strengthening infrastructure, stormwater management, raising foundations);

2. Digital solutions (digital twins, advanced weather forecasting, IoT sensors);

3. Nature-based solutions (green roofs, wetland restoration, reforestation).

 An still incomplete vision of resilience as an opportunity

 While resilience is largely seen as a business continuity issue, it is still underutilized as a value creation lever: only 20% of respondents offer products or services helping their clients adapt to climate impacts.

However, the market for adaptation solutions – durable materials, sustainable infrastructure, forecasting tools – is booming. The leaders of tomorrow will be those who transform climate constraints into drivers of innovation and competitiveness.

A cautious anticipation of a warmer future

Finally, 99% of companies recognize that climate change poses a major economic threat.

The majority anticipate an average increase in global temperature of 2 to 3°C by 2100, but nearly 40% fear warming exceeding 4°C.

In conclusion

 The results of the MSCI survey confirm a major evolution:

Companies no longer see climate resilience as an option but as a condition for economic survival.

 For financial actors, insurers, and regulators, this convergence between physical risk and financial performance redefines how to measure the value and sustainability of a company.

 The challenge is no longer merely to protect against the climate but to reinvent economic models to withstand climate impacts.