For a long time, many companies in Mexico and around the globe overlooked the impact of climate change. Now, it’s clear that climate risk is a serious concern affecting financial decisions and project planning. Companies must not only avoid disruptions but also ensure they can continue operating smoothly amidst challenges.
Climate change is increasingly viewed as a financial risk rather than just an environmental one. This shift is prompting businesses to rethink their strategies. Sustainability is no longer an afterthought; it’s becoming central to how companies measure success. Ricardo Velázquez, President of AMENEER, points out, “In a world driven by capitalism, development must be pursued sustainably.” This reflects the growing consensus that good financial performance and environmental responsibility can go hand in hand.
A major part of this evolution is seen in supply chains. Velázquez believes that companies must work together across their value chains to tackle climate change effectively. He emphasizes the importance of collaboration with suppliers to mitigate risks associated with rising temperatures.
Alicia Silva, Director of Revitaliza Consultores, echoes this sentiment. She stresses that resilience goes beyond just having durable assets—a reliable supply chain is vital. “What happens if your materials or workforce are disrupted?” she asks, urging companies to look at risks in a bigger context rather than isolating them to specific locations.
The urgency of this approach is stark. Silva has observed incidents of factory workers collapsing from heat stress, a clear sign that companies have not been addressing these risks properly. Fortunately, tools like Climate Value at Risk (Climate VaR) are starting to help businesses quantify these environmental risks in financial terms. “How much does it cost to stop your operations because it was too pricey to cool your facility?” This question highlights a new way of thinking: climate risk must be assessed in terms of its financial impact.
Organizations are integrating sustainability into their core decision-making processes, often alongside finance and risk management. The role of Chief Financial Sustainability Officer is emerging, particularly in Europe, showing how governance models are adapting to this reality. Antonio García, Social Responsibility Manager for Liverpool, asserts that climate change is not just an environmental issue but a financial one impacting all industries, especially in Mexico, where weather extremes are common.
García emphasizes the need for comprehensive systems that can forecast and address these impacts on both customers and employees. Edna García, the ESG and Public Affairs Director for Atlas Renewable Energy in Mexico, highlights how different regions face unique climate challenges—from water shortages in the north to hurricanes on the coast. She recommends a dual investment strategy: enhancing infrastructure to withstand climate extremes while using advanced monitoring technologies to predict disruptions.
The financial implications of climate risk are becoming clear. Brenda Pequeño, from CFECapital, notes that 75% of institutional investor capital comes from long-term sources like pension funds. These investors are increasingly focused on Environmental, Social, and Governance (ESG) criteria. A solid governance structure is vital to protect investor interests, according to Pequeño.
This collective insight underscores a fundamental truth: businesses today can’t afford to ignore climate risks. They must quantify, prioritize, and integrate these risks into their financial and operational strategies. The result is not just better compliance but also stronger resilience and competitiveness in a rapidly changing world. By embracing climate considerations, companies can not only safeguard their operations but also contribute positively to the planet.
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MSS 2026, AMENEER, Revitaliza Consultores, Liverpool, CFECapital, CFE, Atlas Renewable Energy
