Extreme Weather Report 2024: Climate change and its consequences for companies

Increase in heatwaves and heat records

The increase in heatwaves is particularly serious. In recent decades, "hot days" (over 30 °C) have quadrupled, increasing the risk of health problems, infrastructure damage and losses in agriculture. The report emphasizes that urban areas are particularly at risk due to the urban heat island phenomenon. Buildings and paved surfaces store more heat during the day and cool down more slowly at night, which increases the burden on people and infrastructure.

Heavy rainfall and flood risk

While summers in Germany are getting hotter and drier, the extreme weather report shows that the number of intense heavy rainfall events is also increasing. The period from July 2023 to June 2024 was the wettest 12-month period since weather records began. Such events often cause extensive flooding, which causes enormous damage to urban areas as well as agricultural land.

Dry spells and the risk of forest fires

In addition to heavy rainfall, the frequency of longer periods of drought is also increasing. These lead to water shortages, jeopardize drinking water supplies and increase the risk of forest fires. The report warns that this trend will continue to worsen if no effective climate protection measures are taken.

Rising sea levels and storm surges

Coastal regions are particularly affected by the consequences of climate change. The sea level in the North Sea has risen by around 40 cm since the 19th century. This increases the risk of storm surges, which will pose a major challenge to coastal protection in the long term.

Effects on German companies

The findings from the Extreme Weather Report 2024 have far-reaching consequences for German companies. Sectors such as agriculture, construction and logistics are particularly at risk, but other industries are also facing rising costs and disruption.

Production losses and supply chain disruptions

Heatwaves and dry spells lead to massive crop failures in agriculture, as was the case in the summers of 2018 and 2019(Prognos) Low water levels on important waterways such as the Rhine affect logistics, as raw materials can only be transported to a limited extent(World Economic Forum). These disruptions affect the entire production chain and lead to delays and financial losses.

Increased insurance and maintenance costs

Extreme weather events such as the flood disaster in July 2021 not only cause direct damage to infrastructure, but also lead to rising insurance costs. Companies will have to pay higher premiums to protect themselves against such risks and at the same time face the challenge of investing in infrastructure refurbishment and adaptation measures(World Economic Forum).

Impact on the workforce

Especially in urban centers, heat waves pose a challenge to the health and productivity of the workforce. Studies show that work productivity drops sharply on extremely hot days, making additional cooling and work adaptation measures necessary(KPMG).

Climate adaptation as an opportunity

Despite the risks, climate change also opens up new areas of business. Companies that invest in climate-proof technologies and infrastructure at an early stage will benefit from new market opportunities. A study by KPMG shows that 43% of German companies are prepared to invest up to 10% of their annual turnover in the "green transition"(KPMG ). By developing sustainable products and services, companies can both strengthen their resilience and tap into additional sources of revenue.

New business opportunities from climate change

Companies that consider climate risks as part of their strategy are discovering new revenue potential. The development of climate-friendly solutions, such as renewable energies or sustainable products, could lead to additional sales of over 200 billion euros in the next ten years(KPMG).

Conclusion: Proactive measures for a sustainable future

The Extreme Weather Report 2024 makes it clear that German companies not only need to arm themselves against the growing risks of climate change, but can also take advantage of the opportunities presented by sustainable innovations. Investments in climate adaptation and risk management are crucial in order to meet the growing demands and remain competitive in the long term.