Beyond insurance, Part II: Five ways businesses in Asia are turning disasters into opportunities

A 6-part series by FM on examining the need to invest in climate change adaptation measures as more extreme weather events test the limits of insurance.

Insurance alone is no longer considered sufficient protection. Companies are investing in resilience, risk mitigation and climate adaptation to safeguard operations, assets and supply chains. Global insurers such as FM play a pivotal role in this shift, encouraging clients to take proactive steps to strengthen resilience and continuity—backed by data and engineering expertise.

As climate risks accelerate, waiting is not an option. Companies must act now to make climate adaptation a boardroom and shareholder priority.

Building resilience is not just about preventing loss; it is also about seizing opportunity. Companies that invest in adaptation can turn climate risk into competitive advantage: they recover faster, maintain continuity during crises and are better positioned to capture market share.

Here are five ways businesses are proactively adapting to climate change to reduce disruption:

1. Risk mapping and vulnerability assessment

The foundation of climate adaptation is understanding where—and how—a business is exposed to climate risk.

Companies are increasingly mapping facilities, assets and supply chains against climate risk heat maps published by climate science bureaus to identify exposure to flooding, wildfire, sea level rise and extreme temperatures. This enables targeted investment in risk management and resource allocation, ensuring critical assets are prioritised for protection.

Municipalities are also using data-driven approaches to assess vulnerabilities in water, wastewater and stormwater infrastructure—and to advise local businesses on climate adaptation. By pooling diverse datasets and improving collection methods, communities can better identify risks such as flooding and temperature extremes and implement targeted measures sooner.

2. Fortifying physical infrastructure

Once businesses understand the climate-related risks they face—and the timeframes involved—they can plan and undertake physical upgrades to better withstand extreme weather.

That can include building flood-resistant foundations, installing storm shutters and wind-resistant roofing, waterproofing critical areas and relocating essential equipment above expected flood levels.

It can also include upgrading heating, ventilation and air-conditioning (HVAC) systems and installing backup generators to maintain operations during heatwaves or power outages. In areas experiencing more frequent wildfires, it may require clearing vegetation, strengthening water supplies for firefighting and recladding buildings with more fire-resistant materials.

For decades, FM has been advising companies on how to make their facilities more resilient to extreme weather events.

This advice helped Hana Microsystems shore up its factories in Thailand, China and Cambodia against floods and other natural hazards. In 2011, Hana Microelectronics was inundated—making the integrated circuit board manufacturer one of countless victims of some of the worst flooding ever to hit the region.

Retrofitting existing buildings and infrastructure is one approach. An even better one is to design new facilities—expected to operate for 50–100 years—to withstand the climate risks projected over their lifetimes.

3. Investing in climate-resilient technologies and models

Some businesses are adopting new technologies and business models to adapt. For example, ski resorts are expanding summer tourism to offset reduced snowfall and agricultural businesses are deploying drought-resistant crops and improved water management.

Renewable energy schemes, such as roof-mounted solar arrays, are often pursued to reduce emissions and energy costs. They can also improve resilience when extreme weather disrupts the power grid, particularly when paired with battery storage that can support short-term continuity of operations.

Some organisations are integrating nature‑based solutions—such as green roofs, urban wetlands, permeable landscaping and restored floodplains—into their assets and operations to help mitigate climate risks and enhance resilience. These measures work with natural systems to reduce flood exposure, moderate urban heat and manage stormwater, often delivering protective benefits alongside operational and community co‑benefits.

In parallel, many owners are deploying advanced engineering solutions, including liquid‑cooled data centres that enable heat recovery and reuse. While these technologies are not nature‑based, they can improve resilience by reducing cooling loads, lowering energy intensity and improving thermal stability during extreme heat. Together, nature‑based and engineered solutions reflect a broader shift toward more resilient, system‑level risk management in commercial property

“By combining data-driven tools, engineering expertise and financial incentives, FM helps clients address a clear reality: while insurance remains an important safety net, it is not the primary shield against climate change.”

4. Shoring up supply chains

Climate change can disrupt global supply chains through extreme weather, drought and wildfire. The COVID-19 pandemic was a stark reminder of the perils of overreliance on vulnerable supply networks. With climate-related risks in mind, companies are diversifying suppliers, relocating critical operations away from high-risk areas and developing contingency logistics plans to reduce the likelihood of disruption.

Businesses are also investing in predictive analytics, real-time monitoring and data-driven risk management systems that provide early warning of disruptions and enable rapid response. For instance, companies use big data to track weather patterns, monitor supplier performance and anticipate bottlenecks before they escalate.

5. Scenario planning and crisis management

How businesses—as well as emergency services and local authorities—respond to extreme weather can determine how disruptive these events ultimately become.

Forward-thinking organisations conduct regular scenario planning for climate hazards, establishing crisis management protocols and identifying alternative logistics routes.

For instance, telecommunications companies worldwide are investing in additional generators and satellite connectivity so cell towers can remain operational when power supplies and fibre-optic links are disrupted.

This preparation enables a faster, more coordinated response when extreme events occur, reducing the risk of prolonged business interruption.

What FM is doing to help

FM engineers work directly with clients to recommend and implement risk-reduction strategies—from waterproofing and windproofing buildings to relocating assets and redesigning facilities for greater safety and efficiency.

Through the climate resilience solutions FM has developed, on-site engineering data is combined with advanced climate modelling to predict geolocation-specific risks clients may face. This enables decision-makers to plan ahead, prioritise adaptation investments and make informed decisions to strengthen operational resilience.

Other FM initiatives that encourage climate adaptation include the Resilience Credit and this year’s record US$1.5 billion Membership Credit. These credits are designed to help offset the cost of adaptation, empowering businesses to take proactive steps.

By combining data-driven tools, engineering expertise and financial incentives, FM helps clients address a clear reality: while insurance remains an important safety net, it is not the primary shield against climate change. Adaptation is no longer simply a matter of regulatory compliance or corporate social responsibility—it is a core business strategy for sustainability and continuity. The cost of inaction is rising, and proactive adaptation is now a business imperative.