Organisations are continuing to face climate-related impacts including flooding, heat and water stress, yet many are not carrying out detailed assessments or investing enough in adaptation, according to Marsh’s 2025 Climate Adaptation Survey.

The study, which gathered responses from risk managers across a number of regions, found that a large proportion of organisations had already experienced asset damage and operational disruption linked to climate events. However, relatively few are conducting thorough climate risk assessments and some do not assess future climate impacts at all.

Respondents in Asia, India, the Middle East, Africa and Canada generally reported some of the highest levels of disruption from extreme weather over the past three years. The findings also suggest that system-wide risks, such as dependencies on critical infrastructure and supply chains, are often overlooked, which can serve to amplify the consequences of climate events.

Access to funding emerged as a consistent barrier. Many respondents said their organisations struggle to resource adaptation properly, pointing to competing business priorities, uncertainty about future climate scenarios, and other demands on limited budgets.

Amy Barnes, head of climate and sustainability strategy and global head of energy and power, Marsh, said the research demonstrates that organisations consistently underinvest in climate adaptation relative to the severity of their identified risks.

"There is clearly an urgent need…to adopt a holistic approach to climate risk, integrating asset-level and system-level assessments, and embedding climate adaptation into enterprise risk management frameworks," she added. "As climate hazards continue to intensify, proactive resilience planning is essential to safeguard assets, maintain revenue streams, and protect long-term business viability.”

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