As climate-related disasters cause unprecedented economic damages, investors are prioritising resilience strategies in infrastructure to safeguard long-term assets, despite political uncertainties and rising costs.
As economic losses from climate-related disasters escalate to unprecedented heights, investors are increasingly recognising the urgent financial imperative of climate resilience in infrastructure investments. Recent data underscores just how exposed assets are worldwide to the mounting risks posed by extreme weather and shifting climate patterns, prompting a strategic shift towards not only mitigation but also adaptation and resilience to safeguard long-term returns.
Consulting firm McKinsey & Company has highlighted that economic losses from global climate catastrophes exceeded $162 billion in the first half of 2025 alone. This aligns with figures from the OECD and Munich Re, which report annual global economic losses from climate disasters reaching between $320 to $328 billion in 2024, with insured losses rising substantially, stressing financial markets and insurers alike. For instance, the first half of 2025 saw insured losses near $80 billion, nearly doubling the decade average, primarily due to severe wildfires in the U.S., including the costly Palisades Fire in Southern California. Such losses not only burden insurers , which are increasingly scaling back coverage in high-risk areas , but also significantly impact communities left vulnerable without sufficient protection.
These staggering figures illustrate the growing recognition among investors that climate resilience must move beyond theoretical climate risk awareness towards operational execution embedded in asset management and capital allocation. Max Engardt, investment director at Infranode, notes how climate resilience has transitioned from a niche consideration to a boardroom priority shaping investment decisions. This includes robust strategies such as flood defences, urban cooling infrastructure, and grid reinforcements.
This increasing focus on resilience is being mirrored in corporate real estate, where a recent survey by JLL found that 45% of CRE leaders now prioritise buildings resilient to climate events, a clear signal of how adaptation potential can preserve and even enhance asset value. As Fiona Thomas Saura, director at Frontier Renewables, observes, climate resilience is moving into mainstream investment decisions alongside emerging technologies like artificial intelligence, reflecting a dual approach of offensive mitigation and defensive adaptation.
However, the political backdrop, especially in the U.S., adds complexity. The previous administration’s scepticism towards sustainable investment policies, including freezing unspent funds from the Inflation Reduction Act and cutting foreign climate aid, has introduced uncertainty. Despite this, resilience initiatives persist at state and local levels, the recent $26 million grant announcements in New York are evidence of continued momentum, and globally, regions like Europe and the Nordics maintain strong commitments. Daniel Han of Prostar Capital underscores that capital tends to look past election cycles, with market pricing increasingly incorporating climate risk even where policy signals fluctuate.
The evolving investment focus also highlights a pragmatic shift towards enhancing existing infrastructure rather than solely pursuing greenfield projects. Circular economy principles and repowering aged assets with technologies such as storage batteries are gaining traction, extending asset lifecycles and improving carbon performance. This brownfield emphasis not only aligns with sustainability goals but also represents prudent capital management, ensuring sound risk-adjusted returns, particularly in sectors vulnerable to climate impacts like utilities, telecommunications, and travel.
According to the World Economic Forum, by 2035 climate hazards could inflict annual fixed asset losses of $560–$610 billion globally for listed companies, rising to around $1.1 trillion by 2055. This translates into a significant erosion of corporate earnings, especially in the most exposed industries. Such projections reinforce the urgency for businesses and investors to integrate climate resilience into their strategies fundamentally, rather than treating it as an ancillary or peripheral issue.
Natural disasters are driving up property insurance premiums by 10-20% annually, further emphasising the financial stakes, while studies suggest current emission trajectories could reduce global GDP per capita by up to 29% by 2040. These sobering forecasts affirm that resilience investments are not mere environmental imperatives but essential elements of financial risk management and value preservation.
In sum, the convergence of worsening climate impacts, mounting economic losses, shifting investment priorities, and political uncertainties underscores the critical need for the infrastructure sector and investors at large to embrace comprehensive climate resilience strategies. The trend is clear: resilience now demands a proactive, integrated approach that balances mitigation with adaptation, ensuring assets withstand and thrive amid the escalating climate crisis.
- https://www.infrastructureinvestor.com/embracing-climate-resiliency/ – Please view link – unable to able to access data
- https://www.reuters.com/business/environment/global-insured-catastrophe-losses-hit-80-billion-first-half-2025-report-shows-2025-08-06/ – In the first half of 2025, global insured losses from natural catastrophes surged to $80 billion, nearly doubling the 10-year average. This spike was primarily driven by severe thunderstorms and devastating wildfires in the U.S., notably the Palisades Fire in Southern California, which caused an estimated $40 billion in insured losses—the largest single wildfire loss in history. The report warns that total annual losses may exceed $150 billion, especially with an active hurricane season projected, including three to five major hurricanes. The increasing frequency and severity of climate-related disasters are leading insurers to scale back coverage in high-risk areas, particularly in California, where wildfires, floods, and landslides threaten the stability of the insurance market. These climate risks pose growing financial challenges, especially for vulnerable communities left with limited insurance options. ([reuters.com](https://www.reuters.com/business/environment/global-insured-catastrophe-losses-hit-80-billion-first-half-2025-report-shows-2025-08-06/?utm_source=openai))
- https://www.weforum.org/stories/2025/06/the-resilience-imperative-why-companies-must-adapt-to-a-1-5-degrees-world/ – By 2035, climate hazards could result in annual fixed asset losses of $560–$610 billion globally across listed companies, depending on the emissions scenario. By 2055, those losses could rise to $1.1 trillion per year. This translates into a drop of between 6.6% and 7.3% in average company earnings every year by 2035. The risk rises to over 20% in the most exposed industries, including utilities, telecommunications, and travel, with extreme heat being the most significant driver of profitability losses. Total estimated fixed asset losses for listed companies under high and low emissions scenarios, by climate hazard (USD billion per year, 2035-2055) Image: World Economic Forum: Business on the Edge: Building Industry Resilience to Climate Hazards. ([weforum.org](https://www.weforum.org/stories/2025/06/the-resilience-imperative-why-companies-must-adapt-to-a-1-5-degrees-world/?utm_source=openai))
- https://www.oecd.org/en/publications/2025/11/the-climate-action-monitor-2025_aed0c4bb/full-report/how-vulnerable-are-countries-to-climate-risks_92df65fe.html – In 2024, total economic losses worldwide due to climate-related natural disasters reached USD 328 billion, up from USD 303 billion in 2023. Of these, approximately 43% of total economic losses are insured, and global insurance losses will continue to grow at 5–7% annually, placing an increasing strain on the economy and broader society. Beyond the economic losses, disasters caused devastating human costs, with more than 16,000 deaths and more than 167 million people affected by natural disasters in 2024 alone, an affected population greater than that of Japan. ([oecd.org](https://www.oecd.org/en/publications/2025/11/the-climate-action-monitor-2025_aed0c4bb/full-report/how-vulnerable-are-countries-to-climate-risks_92df65fe.html?utm_source=openai))
- https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/media-information/2025/natural-disaster-figures-2024.hsb.html – Worldwide, natural disasters caused losses of US$ 320 billion in 2024, of which around US$ 140 billion were insured. The overall losses and, even more so, the insured losses were considerably higher than the inflation-adjusted averages of the past ten and thirty years. In terms of insured losses, it was the third most expensive year; in terms of total losses, 2024 ranks fifth on the cost scale since 1980. Weather catastrophes were responsible for 93% of overall losses and 97% of insured losses. Around 11,000 people lost their lives as a result of natural disasters in 2024—significantly fewer than the average. ([munichre.com](https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/media-information/2025/natural-disaster-figures-2024.hsb.html?utm_source=openai))
- https://www.weforum.org/stories/2025/09/5-things-business-leaders-need-to-know-about-climate-resilience/ – Natural disasters caused $320 billion in losses in 2024 and over $100 billion in insured losses, in turn, driving up property insurance premiums by 10-20% per year. Over the next few decades, these costs will be undeniable. A recent Nature study suggests current emissions will lower global gross domestic product (GDP) per capita by 11% to 29% by 2040. ([weforum.org](https://www.weforum.org/stories/2025/09/5-things-business-leaders-need-to-know-about-climate-resilience/?utm_source=openai))
- https://www.weforum.org/stories/2025/03/how-climate-hazards-are-reshaping-business-realities-and-responses/ – Overall, climate-driven fixed asset losses equate to a 6.6-7.3% drop in earnings by 2035 for the average company, accelerating to 9.9-12.8% by 2055. Travel companies, utilities, and telecom businesses could face losses amounting to more than a fifth of their earnings by 2035. Even industries that seem less directly exposed to extreme weather events, such as high-tech, software, and life sciences, are expected to suffer financial strain due to supply chain disruptions, increasing operational costs, and increasing climate-related risks to infrastructure and logistics. ([weforum.org](https://www.weforum.org/stories/2025/03/how-climate-hazards-are-reshaping-business-realities-and-responses/?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent data on economic losses from climate-related disasters, with figures from the first half of 2025. The earliest known publication date of similar content is July 29, 2025, when Xinhua reported on natural disasters causing $131 billion in global losses during the first half of 2025. ([english.news.cn](https://english.news.cn/20250729/a66982eb23db49aab51d936a299e03d2/c.html?utm_source=openai)) The report is based on a press release from Munich Re, which typically warrants a high freshness score. However, the narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Additionally, the narrative mentions the Palisades Fire in Southern California, which occurred in January 2025, indicating that some content may be recycled. ([reuters.com](https://www.reuters.com/business/environment/global-insured-catastrophe-losses-hit-80-billion-first-half-2025-report-shows-2025-08-06/?utm_source=openai)) The presence of updated data alongside older material suggests a moderate freshness score. The narrative does not appear to be republished across low-quality sites or clickbait networks.
Quotes check
Score:
7
Notes:
The narrative includes direct quotes from individuals such as Max Engardt, investment director at Infranode, and Fiona Thomas Saura, director at Frontier Renewables. A search for the earliest known usage of these quotes reveals that they were first published in the narrative itself, indicating potential originality or exclusivity. However, without external verification, the originality of these quotes cannot be fully confirmed.
Source reliability
Score:
8
Notes:
The narrative originates from Infrastructure Investor, a reputable organisation known for its coverage of infrastructure investment topics. The report is based on a press release from Munich Re, a well-established reinsurance company. The inclusion of quotes from individuals affiliated with reputable organisations such as Infranode and Frontier Renewables further supports the reliability of the sources.
Plausability check
Score:
7
Notes:
The narrative presents data on economic losses from climate-related disasters, with figures from the first half of 2025. The reported figures align with other reputable sources, such as the World Economic Forum, which reported that total global economic losses from natural catastrophes rose to $162 billion in the first half of 2025. ([weforum.org](https://www.weforum.org/stories/2025/08/global-insurance-industry-gap/?utm_source=openai)) The inclusion of specific events, such as the Palisades Fire in Southern California, adds credibility to the claims. However, the narrative lacks supporting detail from other reputable outlets, which raises some concerns. The tone and language used are consistent with typical corporate or official language, and there are no excessive or off-topic details unrelated to the claim.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent data on economic losses from climate-related disasters, with figures from the first half of 2025. While the source is reputable and the data aligns with other reports, the inclusion of updated data alongside older material and the lack of supporting detail from other reputable outlets raise some concerns. The originality of the quotes cannot be fully confirmed without external verification. Therefore, the overall assessment is OPEN with a medium confidence level.