Businesses face challenges scaling climate-resilient business models

Businesses are facing increasing pressure to move beyond traditional linear growth models toward future-fit strategies that integrate commercial, environmental, and social value. While many organizations have established ambitious climate and sustainability pledges, a significant gap remains between these commitments and actual execution.

A report titled ‘From Pilots to Future-Fit Business Models’ suggests that many sustainability innovations remain stuck in pilot phases. To achieve scale, companies are exploring models such as circularity, products-as-a-service, and made-to-order production to build resilience against environmental disruption and market volatility.

Data from the 2025 EY Global Climate Action Barometer indicates that while 64 percent of respondents have a climate transition plan, most have shown little progress or have regressed. Furthermore, climate inaction is estimated to cost businesses an average of 15 percent of their annual revenue. Despite these risks, less than one-third of surveyed organizations have assessed the financial impact of both the costs of action and the long-term costs of inaction regarding physical and transition risks.