5 Steps to Build a Climate-Literate, Future-Proof Workforce

As the world faces increasing climate instability, businesses must adapt to new risks and opportunities that are rapidly reshaping industries. Climate literacy, the understanding of how climate change impacts our operations, supply chains, and markets, is essential for creating resilient and sustainable business models. It's no longer a luxury but a critical tool to ensure that organizations thrive in an era of uncertainty.

Here's how businesses can get started on the path to building a climate-literate workforce:

1. Identify Embedded Assumptions of Climate Stability
For decades, businesses have operated under the assumption that climate conditions would remain relatively stable. However, as climate change accelerates, these assumptions no longer hold true. The first step is to identify where your business model, operations, and strategies are based on outdated climate assumptions. Consider aspects like reliable weather patterns, predictable temperatures for labor, the availability of water resources, or consistent transportation routes. Understanding these assumptions is crucial for assessing potential vulnerabilities.

2. Determine Which Assumptions Are Critical to Your Success
Once you've identified assumptions that may be outdated, it's important to determine which ones are material to your business success. For example, does your business rely on certain weather conditions for outdoor operations or manufacturing? Are you dependent on specific transportation routes or the availability of resources like water or energy? By understanding which assumptions are most crucial to your operations, you can prioritize areas for further analysis.

3. Map the Locations of Material Assumptions
The next step is to map the locations where these critical assumptions are tied to your business. This includes identifying where your resources, suppliers, customers, and employees are located, as well as where your transportation routes or manufacturing facilities are based. By pinpointing these locations, you can begin to assess how local climate patterns are shifting and how these changes may impact your operations.

4. Run Climate Scenarios to Assess Vulnerabilities
Once you've identified the key assumptions and locations, it's time to assess how climate change might impact them. Using climate models and warming scenarios (e.g., 1.5°C, 2.0°C, or 3.0°C increases in temperature), explore the potential impacts on your business. What risks might arise in specific regions as temperatures rise? How could shifts in weather patterns, extreme events like droughts or floods, or disruptions to infrastructure affect your operations? By understanding these vulnerabilities, you can develop strategies to mitigate potential risks and protect your business.

5. Develop Strategies to Mitigate Risks and Seize Opportunities
Finally, with a clear understanding of potential climate risks, it's time to develop strategies to protect your business and even capitalize on new opportunities. This could involve diversifying supply chains, implementing energy-efficient solutions, or exploring alternative materials and technologies. It might also mean improving employee safety protocols, investing in resilient infrastructure, or exploring innovative business models that are better equipped to handle a changing climate. The goal is to build a more flexible, adaptive business that is prepared for the challenges and opportunities that come with climate change.

The Power of Climate Literacy: A Path to Innovation and Resilience
By adopting climate literacy and incorporating these five steps into your business strategy, you're not just preparing for the risks associated with climate change --- you're positioning your company to thrive. Armed with a deeper understanding of climate impacts, businesses can drive innovation, unlock new markets, and build resilience.

Moreover, a climate-literate workforce can make more informed decisions, ensuring that every employee, from senior leaders to rising managers, is empowered to contribute to the company's long-term success in a rapidly changing world.

The Role of Leaders in Driving Change
Building a climate-literate workforce begins at the top. Senior leaders must lead the way by fostering a culture of climate awareness and equipping their teams with the knowledge and tools needed to navigate the complexities of climate change. By prioritizing climate literacy in strategic decision-making, businesses can ensure they are prepared for the future.

As we look toward a more sustainable and resilient business landscape, it's clear that climate literacy will be a key driver of success. The good news is that it's never too late to start. By taking these simple yet impactful steps, businesses can build a workforce that's ready to embrace change and drive positive transformation in the face of climate uncertainty.


Building a climate-literate workforce is not only essential for reducing risk but also for unlocking new opportunities. By understanding the challenges posed by climate change, businesses can better position themselves to thrive in a rapidly evolving world. Let's work together to create a sustainable future --- one informed decision at a time.

Reference: HBR - 5 Steps to Build a Climate-Literate Workforce