The accelerating pace of the climate emergency has been underlined by a new report that reveals that over half of companies in emerging economies have been impacted by extreme weather events over the last 12 months.

The ‘2022 Emerging Economies Climate Report’, published by the UK’s development finance institution British International Investment (BII), shows that 58% of companies in Africa and South Asia have been hit by events such as extreme flooding, storms or droughts over the last year, compared with 48% of respondents in the previous year’s survey.

Notable findings also include that 68% of respondents said climate change is affecting their business today.

Also, 40% of respondents have been impacted by flooding, while 25% have been affected by drought.

More than half, at 56%, thought climate change would affect the viability of their business in the next five years, while 72% were concerned that climate change would impact plans to grow their business or investment portfolio over the next ten years.

Ninety-one per cent agreed to some extent that organisations that take steps to reduce their carbon emissions and reduce vulnerability to physical climate change risks would be more successful in the long term – up from 82% last year.

Also, 92% agreed that better and more targeted investment was needed to reduce emissions and vulnerability.

BII climate, gender & diversity and advisory MD Amal-Lee Amin says the survey highlights the significant impact that the climate emergency is already having on businesses, but also the increased steps that companies are taking to adapt their operations.

“Developing countries – which are least responsible for causing climate change but among the most vulnerable to its impacts – are already feeling the brunt of the climate crisis. And many people living in these regions are already being affected.

“This year we have seen severe droughts on both sides of the African continent, the persistent drought in Somalia for example demonstrates links between climate change and a humanitarian crisis, whereas extreme rainfall in South Africa and devastating floods in Pakistan have directly led to loss of many lives.

“These increasing extreme weather events will expose millions of people to acute food and water insecurity in Africa and South Asia in the years to come. It is clear we need urgent climate action. Incremental improvements in sustainability will not get us to net-zero and resilient economies,” she emphasises.

Amin highlights that it is encouraging that nearly half of respondents reported that they are offering new climate-friendly products and a similar number are excluding investments that have a negative impact on the planet.

For the Emerging Economies Climate Report, BII surveyed senior executives working across its portfolio of 1 300 companies and funds in Africa and Asia.