Key takeaways for directors: 

• Make adaptation a strategic priority, not an add-on. Boards must integrate climate adaptation into governance, strategy, and decision-making, aligning with IPCC pathways and avoiding maladaptation that could harm ecosystems, society, or long-term business sustainability.
• Bridge the adaptation finance gap. Private sector investments in adaptation are often invisible in national strategies boards should improve reporting, champion innovative financing (including nature-based solutions), and leverage legislative and bond opportunities.
• Embed adaptation into risk and transition planning. Adaptation is increasingly linked with mitigation, and regulators expect it to be part of risk management and transition strategies. Boards must ensure alignment with evolving disclosure standards such as ISSB and IFRS.
• Build resilience by protecting natural capital. A business’s resilience depends on ecosystem services; boards should assess nature dependencies across operations and supply chains and integrate nature-based solutions into long-term planning.

Projections from the NGFS show that climate-related economic losses are inevitable, ranging from a 7.3% GDP loss under a Net Zero scenario to 15% under current policies. These projections show that climate-related economic losses are unavoidable to some extent, even with immediate action. This underlines the urgent need for adaptation across all sectors - Simon Bowen, Director, Financial Sector programme

Keynote speaker introduction

Simon Bowen, Director, Financial Sector programme explored the significance of adaptation for boards, and the global GDP losses projected under different climate scenarios. He highlighted the need for effective adaptation pathways and the international and domestic policy landscape, the sustainable finance adaptation gap, and the increasing scrutiny on adaptation by regulators and investors. His key remarks include:  

1. Climate-related economic losses are now unavoidable to some extent, making adaptation essential for all sectors. Boards play a critical role in shaping resilient strategies that balance short-term actions with long-term goals, as emphasised by the IPCC's adaptation pathways. Avoiding maladaptation is key to ensuring decisions made today do not harm ecosystems, society, or business sustainability in the future.
2. Many private sector adaptation investments are not being reported or recognised as such, meaning they are often excluded from national adaptation strategies. This includes financing through private equity, insurance, and consumer spending, as well as corporate asset upgrades that are not labelled as adaptation. Boards must go beyond improving reporting and actively lead the development of innovative finance solutions to close the adaptation funding gaps.
3. Adaptation is increasingly being integrated with mitigation in climate transition planning, with regulators and central banks urging financial institutions to embed it in their risk management practices. This shift will influence investment decisions and bring greater scrutiny to corporate governance, as seen in evolving disclosure standards like ISSB and IFRS. Boards must consider incorporating adaptation into their governance and transition strategies to stay aligned with regulatory expectations and investor demands.
4. The resilience of a business is closely tied to the resilience of nature and the ecosystem services it provides, such as clean water, climate regulation, and raw materials. Boards must consider how their operations, value chains, and supply chains depend on these services and integrate this understanding into risk management and strategy. Nature-based solutions should be viewed as essential tools for building long-term resilience and sustainability.

Please find the presentation slides here.

Roundtable discussions  

The next segment of in the event were three sectoral break-out group discussions which were moderated by Sandra Morales, Marianella Santos and Cristina Pardo de Vera Posada. The breakout groups allowed participants to share what kind of conversations and actions have started in their organisation on adaptation as well actions that have not yet been recognised as climate adaptation. Key takeaways include:

• Financial institutions are developing innovative solutions like disaster-triggered insurance products and mobile banking units to maintain service continuity during extreme weather events. Internally, there is an ongoing focus on balancing long-term sustainability goals with short-term profitability, particularly through green financial products.
• A key challenge for board directors lies in shifting board mindsets to see sustainability not as a cosmetic add-on, but as core to long-term value, while also navigating fragmented policies and lack of systemic planning. Companies are taking practical steps, such as electrifying fleets, improving infrastructure efficiency, and advocating for supportive regulation but coordinated, holistic approaches are still needed.
• Boards are approaching adaptation as an ongoing process rooted in company culture, focusing on risk mapping, regulatory awareness, and clear priority-setting. Success depends on strong systems, measurable baselines, and effective communication. Phased planning is especially important in dynamic contexts like family businesses to ensure long-term impact.

Cross-sector panel discussion – Adaptation  

In the final panel discussion, Gil Maranhão Neto, Carlos Vargas and Jose Luis Munoz explored how boards are addressing physical climate risks alongside broader strategic risks and the role of nature-based solutions, adaptive infrastructure, and public-private partnerships in building long-term resilience. Key takeaways include:

• Boards can pursue opportunities despite the challenges of Scope 3 emissions by engaging suppliers and the broader value chain. In Latin America, legislation and bond financing support nature-based solutions, ranging from simple actions like urban tree planting to more technical projects. Many of these initiatives are backed by federal policy and multilateral bank bonds, making them worth close consideration by companies and boards.
• Boards must ensure that climate adaptation and sustainable finance strategies move beyond compliance to genuinely build systemic resilience. This requires embedding climate change, adaptation, and reporting into all structured company processes, from risk management to investment and operations, guided by science-based frameworks and policies.
• Boards have a responsibility to help management balance short-term returns with the upfront investments needed for credible climate action by embedding long-term systemic risks and value opportunities into strategy. While the balance between short-term pressures and long-term goals will vary by sector and company, boards play a unique role in setting the time horizon for value creation especially for infrastructure resilience projects with lasting impact.  

Watch the full event recording below:

Further resources and supporting materials

• For more information on the need for adaptation, visit the United Nations Framework Convention on Climate Change's (UNFCCC) fact sheet. 
• To learn more about national adaptation plans, visit this UNFCCC page. 
• To find out more on nature-based solutions for climate adaptation, view this guide prepared by the International Institute for Sustainable Development, Wildlife Conservation Society, and World Wide Fund for Nature. 
• Read more about climate adaptation finance in the Climate Policy Initiative's briefing tracking and mobilizing private sector climate adaptation finance.
• For more information on the adaptation gap, read the UN Environment Programme's adaptation gap report.
• Read NGFS's Input paper on integrating adaptation and resilience into transition plans.