{"id":53512,"date":"2025-04-15T08:56:31","date_gmt":"2025-04-15T08:56:31","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=53512"},"modified":"2025-04-18T05:17:46","modified_gmt":"2025-04-18T05:17:46","slug":"building-business-resilience-how-south-african-companies-can-weather-climate-risks","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/building-business-resilience-how-south-african-companies-can-weather-climate-risks\/","title":{"rendered":"Building business resilience: How South African companies can weather climate risks"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

As climate change accelerates, South African businesses face growing risks from extreme weather events such as floods, droughts, and wildfires, which can lead to financial losses, supply chain disruptions, and operational shutdowns. <\/span><\/p>\n

The World Economic Forum warned that businesses that fail to address climate risks could lose up to 7% of their earnings by 2035.<\/span> <\/span><\/p>\n

Jason Mellow, Head of Broker Distribution at Miway<\/span>, says that additionally many businesses remain underinsured, leaving them vulnerable to significant financial strain when disaster strikes.<\/span><\/p>\n

\u201cAlready this year, South Africa has experienced disastrous flash floods, runaway wildfires, and a landspout event that was originally reported as a tornado,\u201d Mellow said.<\/span><\/p>\n

 <\/span>Mellow outlined six steps that businesses can take to build climate resilience into their operations and minimise financial losses.<\/span><\/p>\n

1. Conduct a comprehensive risk assessment<\/strong><\/p>\n

A climate risk assessment is a systematic approach to identifying a company\u2019s operational vulnerabilities to the impact of both extreme weather events as well as gradual changes due to climate change. Understanding threats can inform long-term planning and strategic investments in infrastructure and insurance coverage. The assessment should consider the full scope of the business, its geography, historical climate information, and must identify <\/span>potential adaptive measures like infrastructure upgrades, policy changes, or behavioral modifications.<\/span><\/p>\n

\u201cIt\u2019s become clear that the sustainable development of businesses rests on the intersection of climate science and risk management,\u201d Mellow said.<\/span><\/p>\n

2. Develop or update disaster preparedness plans<\/strong><\/p>\n

A reliance on reactive measures in both public and private sectors is evident by the climate-related destruction to infrastructure and the resultant operational disruptions and financial losses reported recently. In the North West province, 27 schools were rendered either inaccessible or severely damaged by the continuous heavy rains in February.<\/span> In 2022, KwaZulu-Natal (KZN) experienced the deadliest storm in the country since 1987 with heavy rainfall and floods accounting for more than R17 billion in damages to critical infrastructure.<\/span><\/p>\n

A disaster preparedness plan is a set of measures documented in advance to mitigate the potential damage and disruption to operations before the disasters occur. <\/span><\/p>\n

3. Invest in resilient infrastructure<\/strong><\/p>\n

Poor planning and maintenance were identified as major contributors to the collapse of critical infrastructure in several provinces. <\/span><\/p>\n

The KZN floods, for example, revealed infrastructure that was not built or reinforced to adapt to changing weather patterns. <\/span>Insurance claims that arose during that time in industries like construction stemmed from defective designs, poor planning, and inadequate maintenance. \u201cBusinesses should prioritise climate-resilient construction, such as reinforced drainage systems, elevated structures, and improved building materials that can withstand extreme conditions,\u201d Mellow added.<\/span><\/p>\n

4. Be adequately insured<\/strong><\/p>\n

\u201cA climate risk assessment together with a comprehensive review of a company\u2019s insurance policies can help identify and address gaps in protection,\u201d explains Mellow. <\/span><\/p>\n

\u201cWhether it\u2019s business interruption, or damage to your physical property, unforeseen events do not have to put you out of business if you insure your assets against the very real risk of climate-related damages.<\/span><\/p>\n

\u201c<\/span>We offer optional add on solutions like Environmental Transport Liability Cover<\/span>, for example, that are <\/span>specifically designed to cover the environmental impairment risks of transporting hazardous substances<\/span>,\u201d he adds. \u201cIt\u2019s worth exploring the different options available from your insurer, based on your risk.\u201d<\/span><\/p>\n

5. Stay informed about potential risks<\/strong><\/p>\n

Monitoring weather alerts and climate reports help businesses anticipate risks and act swiftly. The South African Weather Service provides real-time warnings on storms, floods, and heatwaves, enabling proactive decision-making. Establishing internal communication channels for rapid response ensures employees and stakeholders remain informed, minimising disruption and enhancing overall preparedness for extreme weather events and climate-related disasters.<\/span><\/p>\n

6. Practise sustainability<\/strong><\/p>\n

To ensure long-term competitiveness in a changing climate, Mellow urges businesses to explore renewable energy sources, eco-friendly supply chains, and carbon footprint reduction strategies. <\/span><\/p>\n

\u201c<\/span>Climate change is a growing reality, and businesses must take responsibility \u2013 not only for mitigating risk but for contributing to a sustainable future. At Miway, we\u2019re committed to both,\u201d he further said.<\/span><\/p>\n

BUSINESS REPORT <\/strong><\/p>","protected":false},"excerpt":{"rendered":"

As\u00a0climate\u00a0change accelerates, South African\u00a0businesses\u00a0face growing risks from extreme weather events such as floods, droughts, and wildfires, which can lead to financial losses, supply chain\u00a0disruptions, and operational shutdowns. The World Economic Forum warned that businesses that fail to address climate risks could lose up to 7% of their earnings by 2035.\u00a0Jason Mellow, Head of Broker Distribution at Miway, says that additionally many\u00a0businesses\u00a0remain underinsured, leaving them vulnerable to significant financial strain when disaster strikes.\u201cAlready this year, South Africa has experienced disastrous flash floods, runaway wildfires, and a landspout event that was originally reported as a tornado,\u201d Mellow said.\u00a0Mellow outlined\u00a0six\u00a0steps\u00a0that\u00a0businesses\u00a0can take to build\u00a0climate\u00a0resilience into their operations and minimise financial losses.1. Conduct a comprehensive risk assessmentA\u00a0climate\u00a0risk assessment is a systematic approach to identifying a company\u2019s operational vulnerabilities to the impact of both extreme weather events as well as gradual changes due to\u00a0climate\u00a0change. Understanding threats can inform long-term planning and strategic investments in infrastructure and insurance coverage. The assessment should consider the full scope of the business, its geography, historical\u00a0climate\u00a0information, and must identify\u00a0potential adaptive measures like infrastructure upgrades, policy changes, or behavioral modifications.\u201cIt\u2019s become clear that the sustainable development of\u00a0businesses\u00a0rests on the intersection of\u00a0climate\u00a0science and risk management,\u201d Mellow said.2. Develop or update disaster preparedness plansA reliance on reactive measures in both public and private sectors is evident by the\u00a0climate-related destruction to infrastructure and the resultant operational\u00a0disruptions\u00a0and financial losses reported recently. In the North West province, 27 schools were rendered either inaccessible or severely damaged by the continuous heavy rains in February.\u00a0In 2022, KwaZulu-Natal (KZN) experienced the deadliest storm in the country since 1987 with heavy rainfall and floods accounting for more than R17 billion in damages to critical infrastructure.A disaster preparedness plan is a set of measures documented in advance to mitigate the potential damage and disruption to operations before the disasters occur.\u00a03. Invest in resilient infrastructurePoor planning and maintenance were identified as major contributors to the collapse of critical infrastructure in several provinces. The KZN floods, for example, revealed infrastructure that was not built or reinforced to adapt to changing weather patterns.\u00a0Insurance claims that arose during that time in industries like construction stemmed from defective designs, poor planning, and inadequate maintenance. \u201cBusinesses should prioritise climate-resilient construction, such as reinforced drainage systems, elevated structures, and improved building materials that can withstand extreme conditions,\u201d Mellow added.4. Be adequately insured\u201cA\u00a0climate\u00a0risk assessment together with a comprehensive review of a company\u2019s insurance policies can help identify and address gaps in protection,\u201d explains Mellow. \u201cWhether it\u2019s business interruption, or damage to your physical property, unforeseen events do not have to put you out of business if you insure your assets against the very real risk of\u00a0climate-related damages.\u201cWe offer optional add on solutions like Environmental Transport Liability Cover, for example, that are\u00a0specifically designed to cover the environmental impairment risks of transporting hazardous substances,\u201d he adds. \u201cIt\u2019s worth exploring the different options available from your insurer, based on your risk.\u201d5. Stay informed about potential risksMonitoring weather alerts and\u00a0climate\u00a0reports help\u00a0businesses\u00a0anticipate risks and act swiftly. The South African Weather Service provides real-time warnings on storms, floods, and heatwaves, enabling proactive decision-making. Establishing internal communication channels for rapid response ensures employees and stakeholders remain informed, minimising disruption and enhancing overall preparedness for extreme weather events and\u00a0climate-related disasters.6. Practise sustainabilityTo ensure long-term competitiveness in a changing\u00a0climate, Mellow urges\u00a0businesses\u00a0to explore renewable energy sources, eco-friendly supply chains, and carbon footprint reduction strategies. \u201cClimate change is a growing reality, and businesses must take responsibility \u2013 not only for mitigating risk but for contributing to a sustainable future. At Miway, we\u2019re committed to both,\u201d he further said.BUSINESS REPORT\u00a0<\/p>","protected":false},"author":1,"featured_media":53514,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-53512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/53512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=53512"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/53512\/revisions"}],"predecessor-version":[{"id":53513,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/53512\/revisions\/53513"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/53514"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=53512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=53512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=53512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}