CDP Report Finds Companies Project $900 Billion in Extreme Weather Losses

A new CDP report reveals that companies are projecting $898 billion in losses from extreme weather events, with flooding alone accounting for $528 billion of anticipated financial impact through lost revenue, asset impairments, and supply chain disruptions. The report, analysing data from more than 11,000 companies, found that the cost of mitigating environmental risks is nearly 13 times lower than the anticipated financial losses.

Key drivers of anticipated financial impact include lost revenue from reduced production capacity ($326 billion) and asset impairment or early retirement ($218 billion), as well as operational disruption, increased costs, higher insurance premiums, and supply chain disruption. Flooding is projected as the dominant source of losses at $528 billion, followed by cyclones at $161 billion and heavy rain at $86 billion. Notably, 48% of identified extreme weather events are expected to materialise within two years, classifying them as imminent rather than long-term risks. CDP analysed data from 2025 corporate questionnaire disclosures.

Despite the scale of anticipated losses, only 35% of companies identify extreme weather events as a financially material risk. The report found a median mitigation cost per company of $3.1 million, compared with a median risk exposure of $39.4 million — a ratio of approximately 12.7 times. Adaptation actions are primarily focused on direct exposure reduction such as physical resilience measures and business continuity planning, while actions coordinated across shared system dependencies or with other actors remain a smaller share of responses.

CDP also found that 62% of cities, states, and regions surveyed are already significantly impacted by extreme weather, with over 60% expecting these hazards to increase in frequency or intensity. Nearly half of sub-national government respondents cited budgetary constraints as a barrier to climate adaptation, with an indicated adaptation investment gap of at least $34 billion. For India, which faces severe exposure to flooding, cyclones, and extreme heat, the report's findings are directly relevant to the business risk assessments of companies across manufacturing, agriculture, infrastructure, and financial services.

Key figure — $898 billion in projected losses from extreme weather events identified by companies in CDP's 2025 analysis