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After an unprecedented summer marked by intense heatwaves, devastating floods, and disrupted logistics, the concept of resilience has become more than just a theoretical idea; it’s now a critical concern for boardrooms and a balance-sheet question. The dialogue has evolved from simply asking, “How do we demonstrate responsibility?” to a more pressing question: “How can we accurately quantify and account for climate-related costs at the product level, rather than letting these costs slip through the cracks?”

COP30 in Brazil stands out as a pivotal moment where global challenges and the need for a transition come into focus. The leaders keeping an eye on aren’t just those making sweeping promises, but rather those integrating resilience into their core business operations, across supply chains, finance, and with the help of AI.

These three value drivers are where sustainability equals ROI:

1. Supply chains, where your resilience is tested first

Supply chains are where the operational reality of disruptions plays out. Shipment reroutes, altered deadlines, and rising raw material costs translate to balance sheets as premiums, downtime, and cashflow.

Companies are feeling the impact: more than half of firms surveyed by Morgan Stanley experienced climate impacts on operations within the past year, including increased costs, worker disturbance, and revenue losses. BCG estimates that climate-related supply chain disruptions already cost companies an average of $182 million annually.

These shocks are not abstract. When a drought shrank the River Rhine in 2022, shipping capacity fell by half, forcing costly reroutes for European manufacturers. US agribusiness faced similar disruptions when the Mississippi River levels dropped from 2022-2023, delaying exports and inflating logistics costs.

As climate adaptation and mitigation climb up corporate priority lists, the agenda of today’s COO is shifting. Here’s my view on the key steps that unlock the real business value of sustainability:

• Gain full visibility. Investing in tools that increase traceability and real-time awareness of emissions and resources is crucial; this will allow you to pinpoint vulnerabilities, diversify sourcing, strengthen transparency and anticipate risks before they escalate.
• Link resilience metrics to measurable outcomes. Your value chain is your source of measurable sustainability value. Metrics that go beyond avoiding losses (i.e. reduced insurance premiums, increased operational agility, customer trust) turn this visibility into actionable insight. SAP Customer Nestlé has strengthened their resilience with real-time, connected operations across its global supply chain with a cloud-first environment and integrated analytics.

With tools in place and metrics aligned to outcomes, COOs can optimize value chains beyond just efficiency: diversifying suppliers in geographies with higher exposure to disruptions, building redundancy where needed, and securing future advantage.

Resilience isn’t just defensive. A supply chain that adapts faster than your competitors’ is a growth driver. Redesigned value chains and networks transform risk management into a source of long-term ROI, and sustainability data is an untapped lever.

2. Finance, the place climate risk becomes line-item reality

If supply chains are where vulnerabilities show up operationally, finance is where they land with impact and finality. Today’s CFO cannot steer the business on carbon numbers alone. Making this shift means answering questions like:

• “How do we integrate sustainability data into the same systems that manage profit centers, cost centers, and balance sheets?” Many disclosures still rely on proxy data, such as industry averages, which can result in deviations of 30-40% or more from real values. SAP Green Ledger  brings granular carbon insights into core finance processes, enabling organizations to drive decarbonization and operationalize sustainability at scale. This means companies can understand not only how much carbon they emit, but also how it affects risk exposure and margins.
• “How do we measure progress toward decarbonization goals to strengthen our position in carbon-sensitive markets?” Those with verifiable sustainability data have preferential access to capital. Sustainable bonds and loans surpassed $1.6 trillion in 2024 as demonstrable decarbonization strategies often lowered financing costs.

Companies that treat sustainability data as a financial asset, connected to auditable accounting principles, are transforming sustainability from a compliance exercise into a growth driver.

The organizations that get this right are already lowering the cost of capital and outperforming their peers.

3. AI, your resilience accelerator

AI plus sustainability is a classic ROI equation. One type of return on investment is how much better you get at predicting physical climate risk, then prepare and respond with speed and agility. According to McKinsey, AI (especially generative AI) could generate $2.6 to $4.4 trillion annually in economic benefits, and up to $6.1 to $7.9 trillion when considering full productivity impact across industries.

However, there is a gap between AI adoption and opportunity. According to Accenture, only 14% of companies today are using AI to reduce their carbon emissions, but 65% believe they will do this in the future.

Opportunities for AI adoption to drive ROI and drive competitive advantage are huge:

AI streamlines supplier data, automatically handles permits, and reduces compliance costs. SAP capabilities such as AI-assisted permit management and AI-assisted compliance information processing improve speed and accuracy of information extraction and processing, while AI-assisted ESG report generation allows you to report on your progress in minutes. Automotive industry company Martur Fompak has used business AI to achieve a 52% reduction in transportation-related carbon emissions and to calculate carbon footprints more than 50 times faster. Another example is msg Global Solutions AG, whose Greenwashing Detector solution leverages generative AI to validate reports and detect potential greenwashing.

Unlock enterprise-wide intelligence for long-term ROI

For companies that go a step further to deeply ingrain AI implementation, AI contextualizes and integrates sustainability data across ERP systems to inform decisions on risk, resilience, and opportunity. Tools like AI-enabled supplier validation, AI-powered emissions factor mapping, and AI-assisted carbon emission analysis help identify risk and opportunity so that you can act on sustainability across the enterprise. This drives both day-to-day operations, like smarter procurement, as well as long-term strategy, like identifying and reducing emissions at the source.

In times of disruption, the early mover captures the value. AI isn’t just an efficiency tool, but a proactive warning system enabling you to see risk sooner, act faster, and optimize better.

Climate risk doesn’t live in theory. It shows up in supply chains, operations, and increasingly, line items on financial statements. Resilience is no longer just a safeguard, but a source of growth, efficiency, and competitive edge. 

At COP30, leaders across different industries are preparing for a new normal, focusing on managing environmental, regulatory, and market risks as their top investment priorities.

More information about SAP Sustainability can be found here.

New research by Aviva reveals that Brits are prepared to go big on trips abroad, with almost half (49%) having been on a trip of a lifetime, at an average cost of £2,807 per person.

And for some, these special trips aren’t a one off as one in 10 (10%) have been on three ‘once in a lifetime trips’ or more, spending as much as £3,040 on their most recent trip.

Beach holidays (25%) prove to be the most popular for once in a lifetime trips, followed by city breaks, touring holidays and cruises (all 15%) and trips to theme parks/ adventure parks (12%). The research also reveals that a handful of people (6%) may have an appetite for so-called ‘shock tourism’, having deliberately visited somewhere unsafe or high-risk, such as a location with a live volcano.

The research also reveals that Brits are prepared to go all out celebrating milestones abroad. According to the findings, almost half (49%) have either travelled abroad – or are planning to – for a birthday, at an estimated average cost of £1,606 per person.

Europe tops the list for birthday celebrations, with Spain being the most popular country, followed by Greece, Italy and France. However, the United States also proves to be a well-liked destination, with a handful of travellers heading to further afield destinations such as Ghana, Fiji, Kenya, Malawi, Tobago, and Costa Rica.

Although birthdays prove to be the most common reason for celebrating abroad, the data also reveals that Brits are heading overseas for family reunions (34%), other people’s weddings (32%) and anniversaries (31%).

Travellers are also willing to invest in other major life events, spending an average of £2,605 on their own wedding, £2,226 on sabbaticals or extended holidays, and £1,973 on the birth or adoption of a child.

Despite this, 11% of those who are planning to travel this year do not plan to take out travel insurance^[2].

James Devereux, Travel Manager at Aviva, says: “It’s interesting to see that Brits are taking the chance to go abroad for those once in a lifetime trips or milestone moments.

“Any holiday, whether it’s to celebrate a birthday, anniversary or even retirement, is exciting. While we hope everything goes smoothly, life events such as illness, injury or even being called up for jury service can impact our ability to travel, which is why travel insurance is so important.

“Not only does it provide cover in the event you need to cancel your trip, it can also protect you while you’re away if you’re unfortunate enough to fall ill and require medical assistance or other support. Travel insurance can give you that much needed peace of mind while celebrating a special time.

“However, it is worrying that some travellers are visiting destinations that are deemed dangerous or high risk – otherwise known as ‘shock tourism’. If the government advises against all travel, but you choose to go anyway, you wouldn’t be able to make a claim in the event you needed medical assistance, for example. With medical bills in some countries costing tens – if not hundreds – of thousands of pounds, it’s important to check the FCDO website before you travel.”

Aviva’s dos and don’ts for ‘once in a lifetime’ and milestone holidays:

DO check your policy for a maximum trip limit – If you are looking to go on a sabbatical or extended holiday, be sure to check your travel insurance as there is usually a limit on the number of consecutive days covered. In many instances, this is usually around 31 days, although policy extensions can usually be added at a fee.

DO double check you’re covered for any activities planned – Some holidaymakers might be planning something special for their milestone trip, which may not be covered by standard travel insurance policies.

DON’T travel without declaring any medical conditions – Be sure to inform your insurer about any existing or ongoing medical conditions, whether they relate to you or anyone else covered by the policy. Some insurers may also require you to update them if your health changes between the time you purchase the policy, book your trip and leave for your holiday. As requirements can differ between providers, it’s always wise to check directly with your insurer if you’re unsure.

DON’T travel against government travel advice – If the Foreign, Commonwealth & Development Office (FCDO) advises against all travel, but you decide to travel anyway, you probably wouldn’t be able to make a claim should you require things like medical treatment or assistance while abroad. Though it may sound obvious, rules change frequently, so it’s worth keeping an eye on both the government website and any local government services for any particular advice before you travel.

DO check the policy limit – If you’re planning on spending thousands on a dream holiday, it’s a good idea to double-check your policy limit – which is the maximum amount an insurer will pay for claims covered – to ensure that it provides the right level of cover in the event you need to cancel your trip. Policy limits will range across insurers, so if unsure, always contact your insurer directly.

DO check entry requirements – Under new rules, British passport owners may have to prove that they have travel insurance and a return ticket when crossing the border. Failing to have the correct documentation or visa – and being denied entry as a result – wouldn’t be covered under most travel insurance policies. Before booking your trip, it’s worth checking the FCDO website.

DO keep a copy of your insurance provider’s emergency details – Travel insurers are there to help you in the case of an unforeseen event – which includes things like cancelled flights and medical emergencies. Though no one wants to think of the worst-case scenario, it pays to be prepared.

-ends-

References:

^1. _{The research was conducted by Censuswide, among a sample of 2001 UK Respondents (Nat Rep 16+). The data was collected between 14.05.2025-16.05.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council. £2,807 statistic is per person. [↑]}

^2. _{Aviva’s How We Live Report 2025 – The underlying research was conducted by Censuswide between 8 and 15 November 2024, via a survey of 4,000 nationally representative respondents across the UK (aged 16+). [↑]}

^3. _{Average cost calculated by taking mean costs for those who have already travelled overseas for these events and mean planned costs for those who plan to travel overseas. [↑]}

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