As extreme weather events become more frequent, businesses must take proactive steps to understand and manage these risks before the next disaster strikes. HDI Risk Consulting (HRC), a wholly owned subsidiary of HDI Global, has launched Climate Consulting to help businesses identify and mitigate climate-related risks, empowering them to safeguard their operations against a changing climate.
Company annual general meetings (AGMs) are increasingly becoming forums for shareholders to call for action on climate change. Some are even purchasing shares solely to introduce resolutions or question companies on their strategies to reduce emissions.
In Asia, this trend is gaining momentum, reflecting the urgent need for resilience as natural hazards strike the region with growing frequency. In early September 2025, Bali, Indonesia, experienced its worst floods in decades, with widespread devastation across the island. Severe flash floods and landslides affected nearly all of Bali’s districts, including Denpasar, Gianyar, Jembrana, Tabanan, and Badung. Hundreds of residents were forced to evacuate, and the disaster claimed at least 18 lives while leaving several missing. The flooding also displaced around 800 people, damaged homes, infrastructure, and farmland, and caused economic losses estimated at more than $1.5m. A state of emergency was declared from September 10 to 17, with hundreds of rescue and aid workers mobilized to support recovery efforts.
Environmental experts pointed to torrential rainfall – over 385mm in 24 hours in some areas – as the primary cause, worsened by overdevelopment and poor waste management that clogged drainage systems. The floods also affected neighbouring East Nusa Tenggara province, where additional casualties were reported. For many in Southeast Asia, the Bali disaster was a stark reminder of how vulnerable communities and businesses remain to climate change.
This sentiment echoes a broader regional warning. Last year, S&P Global issued a stark warning to Asia-Pacific countries, stating, “The global climate crisis is accelerating, and countries in Asia-Pacific face severe impacts.” According to the State of the Climate in Asia 2023 report by the World Meteorological Organization, the Asia-Pacific region was the most affected by natural disasters in 2023, with floods, storms, and heatwaves causing significant loss of life and economic damage.
Future-proofing business
As the impact of extreme weather events intensifies, the urgency for companies to assess and address the risks associated with climate change and the interconnected crisis of biodiversity loss grows.
In response to these challenges, HDI Global reinforced its commitment to resilient risk management with the launch of Climate Consulting. This new service helps businesses assess and mitigate both chronic and acute physical climate risks specific to their locations, empowering them to implement strategies that reduce these risks.
Through Climate Consulting, HRC helps businesses better understand their risks and respond proactively. “Companies are really forced to figure out how physical climate risks affect their business,” said HDI Risk Consulting (HRC) head of resilience services Lars Regner. Additionally, with Climate Risk Reporting, HDI supports companies to ensure compliance with new regulations. Non-compliance could result in significant fines.
Tailored Solutions
Climate Consulting offers detailed risk assessments of specific plants, processes, and operations, evaluating potential climate risks in the future and providing strategies for their reduction. This approach enables businesses to gain a clear understanding of their future climate risks and receive tailored recommendations for effective management.
HDI Global supports businesses with both insurance solutions and climate risk analysis, enhancing resilience through the following offerings:
- Desktop assessments of topography, regional climate, and natural hazards.
- On-site inspections to evaluate impacts on infrastructure, logistics, and operations.
- Site-specific advisory reports with recommended mitigation measures.
“We offer climate risk reports, as well as climate consulting where risk engineers identify climate risks,” Mr Regner explained. “Later in the year, we will roll out our updated Nat CAT tool HDI ARGOS 4.0 for existing clients to assess their risks, and we’ll also provide solutions for areas needing improvement.”
Comprehensive Climate Risk Reports
HRC’s Climate Risk Reports assess climate risks for specific locations, providing an in-depth evaluation of a company’s exposure to physical climate-related risks. These reports cover approximately 30 climate perils, including heatwaves, heavy precipitation, and saline intrusion, helping companies understand the potential impacts on their operations. Risk assessments are available at 5-year intervals, projecting short-term risks for 2025, medium-term risks for 10-30 years, and long-term forecasts extending to 2060 and beyond.
The service evaluates climate risks under three different climate change scenarios extending to the year 2100:
- Paris-aligned scenario: A moderate increase in global temperature of 1.5 to 2.0 degrees Celsius.
- Emission peak in 2040: A scenario where carbon emissions begin to decline in 2040.
- Business-as-usual scenario: A trajectory where emissions continue to rise, leading to significant climate challenges beyond 2040.
These assessments help businesses anticipate future risks, such as uninhabitable regions and food production challenges.
HDI Global member of the executive board Dr Dirk Höring recently emphasised the importance of businesses acknowledging their vulnerabilities in the face of climate change. “Climate change is advancing, and even in the absence of immediate natural catastrophes, businesses must recognise their vulnerabilities and take proactive steps to protect themselves. It is crucial to know your risk and how to protect yourself.”
He also highlighted that this new service strengthens HDI’s position as a trusted and strategic partner in guiding businesses through transformation. A