Climate volatility has been a growing risk to all organisations for years. The Covid-19 pandemic has not altered that fact.
However, the relative strengths and weaknesses it has exposed in globalised business will provide an impetus for organisations to refocus on building greater climate security into their overall strategies.
This should be welcomed. The pandemic has not only demonstrated the vital importance of sustainable business practices, and the need for a more resilient global system of trade, but also that sustainability isn't just essential for the environment but for a business's bottom line.
What Covid-19 has taught us about business risk
Global business is more fragile than often realised.
'Just in Time' supply chains, global food production networks reliant on bountiful harvests and their swift transfer across multiple continents, not to mention the assumption that millions of meals take place outside the home, are just some of the issues economies have had to navigate through the pandemic.
It was not always obvious but modern standards of living have been built on highly tuned and inflexible criteria.
The early stages of the pandemic exposed the vulnerability of these systems to unexpected shocks. Empty shelves and anxiety spread in its wake.
Thankfully, gargantuan efforts across the entire value chain, from farmer to shop assistant, have meant these shocks were short-lived. Just as weaknesses were exposed so was the potential of collaboration to overcome them.
As the conversation moves now from reaction to recovery, it is important all organisations recognise the importance of de-risking their operations, as well as the role collaboration must play in tackling international challenges and simultaneously bolstering the economy.
Security, sustainability and finance: closer than you think
The financial narrative around Covid-19 has focused on the macro steps being taken by governments worldwide to stimulate the economy.
Decisive action is being taken, and the fact that sustainable initiatives, such as the UK's £2bn for Green Homes Grants which cover the cost of verified energy-saving home improvements, are at the forefront of these plans is welcome.
However, in tandem to these bold budgets, there is a more subtle financial story unfolding. Recent months have shown that sustainable, climate-proof, businesses aren't just a desire for the future but are a leading example of sound finance.
ESG investments and green bonds have outperformed benchmarks in the wake of Covid-19. In the face of the worst crises in living memory, sustainability has shown its strength.
Secondly, the fragility exposed by the Covid-19 pandemic means investors will scrutinise the financial threats posed to business by what were previously thought of as "Black Swan" events. Extreme weather events, which have been increasing in recent years in frequency and severity will be at the top of the agenda in these assessments.
But as the Government focuses on nurturing a recovery and boosting green initiatives, what can other organisations do to boost their sustainability and security, and ensure their business remains attractive to future funders?