The urgency of climate adaptation is beyond question

By: Trademagazin Date: 2025. 03. 25. 11:49

Extreme climate and weather events are becoming more frequent and severe. The cost of the resulting damage and losses is $16 million per hour globally. A significant part of this stems from our lack of understanding of nature’s interconnections. Our current systems and infrastructures are no longer sufficient to handle these challenges—we must urgently adapt to the changing climate. And once again, nature itself offers solutions, as highlighted by Jan Pokorný, co-founder and research director of the research organization ENKI, o.p.s., at the BCSDH Business Breakfast and Forum held on March 25, which focused on climate adaptation. The event was hosted by Dr. Csaba Kandrács, Vice President of the Hungarian National Bank, who welcomed the participants.

According to a report from 2025 by the World Economic Forum, the leaders who were surveyed ranked extreme weather conditions as the second greatest risk factor using a two-year outlook and the top risk from a ten-year perspective.

“Improper landscape management—stemming from ‘plant illiteracy’, i.e., the low level of human knowledge about plants—is leading to an increase in continental droughts, rising local temperatures, and the development of an arid climate, interrupted by torrential rains and extreme weather events. This ignorance also affects climate adaptation, as we fail to properly utilize nature in this process. People do not understand the role of plant transpiration in the ‘air-conditioning’ function of vegetation, its impact on the water cycle, or the interactions between plants and the atmosphere. By gaining a deeper understanding of these processes, we can equip ourselves with numerous tools for both climate mitigation and adaptation.”

– said Jan Pokorný, co-founder and research director of the research organization ENKI, o.p.s., in his thought-provoking presentation.

The BCSDH’s Towards Net Zero survey, published in January 2025, highlighted that while 91% of companies are feeling the impacts of climate change, only 16% have a climate adaptation action plan. Moreover, Hungary is disproportionately vulnerable to the negative effects of climate change relative to its small contribution to global greenhouse gas emissions.

“The frequency of extreme weather events has increased, and the business sector must also prepare for this. We need to assess how these changes may impact business operations and develop strategies for adapting to our changing world,”

– said Attila Chikán Jr., President of BCSDH, in his opening speech.

“Although several international developments are working against sustainability efforts, this does not mean that companies can relax their commitments regarding climate change. The climate change is not slowing down—it is becoming increasingly severe.”

Increasing reporting obligations have led to growth in the number of sustainability strategies and the use of related metrics, significantly impacting climate adaptation and the assessment of physical risks. Integrating sustainability considerations into financial decision-making clearly facilitates resilience planning.

Global and European trends may lead to a softening of sustainability goals and expectations about decisive action. However, regardless of what happens with climate targets, conditions are already changing, and this process will only intensify. The need for climate adaptation is unquestionable.

Following the presentations, a closed forum brought together business leaders, and corporate, scientific, and civil experts to discuss the best methods for preparing for climate adaptation, key considerations regarding implementing successful adaptation measures, and the role of water as a critical element in climate resilience. The forum also highlighted numerous business-related best practices.

The discussions were led by Dr. Barbara Wassen, Climate Ambassador-at-Large at the Ministry of Energy; Dr. Gábor Bartus, Secretary of the National Council for Sustainable Development; and Dr. Károly Kovács, President of the Hungarian Water and Wastewater Technology Association and CEO of Pureco Ltd.

The findings from the forum—covering Hungary’s current situation, key challenges, and driving factors—will be further explored in executive roundtable discussions in May. The goal is to develop recommendations for companies on climate adaptation, which will be presented at the BCSDH Business Lunch in October. Encouraging companies to act and supporting them in taking the most critical steps remains a top priority.