A new report has laid bare the the gap between climate risk awareness and climate action among Spanish companies.

The report by climate-risk intelligence company Mitiga Solutions and entrepreneurs network Endeavor Spain, found that while awareness was high it was not being translated into action on resilience which leaves businesses vulnerable to climate events.

The report – The High Stakes of Climate Inaction in Spain’ – found businesses of all sizes in Spain feel ill-equipped and under-resourced in the battle against the impact of climate change, even as they already suffer financial losses from extreme climate events. Beyond the profound social and human impact of the 2024 DANA flooding in Valencia, for example, was an economic loss of approximately €10 billion, according to the Banco de España.

According to The World Economic Forum’s Global Risks Report 2025, extreme climate events are the most likely and most impactful risk facing the global economy over the next decade. It is estimated that every dollar invested in climate change adaptation could generate over $10.50 in benefits over a 10-year period.

The report’s key findings include:

• 45% of surveyed organisations have already experienced financial disruption from extreme climate events in Spain.
• Less than 1 in 3 (29%) have completed climate-related physical risk assessments.
• Respondents reported an average concern score of 3 out of 5, indicating strong awareness of the issue but an inability to immediately take action.
• Among the 45% who reported experiencing climate-related disruptions, individual losses ranged from under €10,000 to more than €500,000 per event. Four organisations reported losses exceeding €500,000 each following a single climate event. 
• 58% of respondents have neither completed nor planned a climate-related physical risk assessment, despite nearly half having experienced real losses.

Dr. Alejandro Martí, (above) CEO and co-founder of Mitiga Solutions, said: “The financial implications of climate change for companies all around the world, but particularly in Europe, have never been more glaring – as proven by the fact 45% of companies in Spain have already experienced losses. Less commonly known is the potential to unlock value in the coming years by taking a proactive approach to climate-change readiness. Companies that assess and prepare today will be better positioned to protect operations, secure insurance, and make more resilient investment decisions.”

The survey showed that although companies are aware of the cost of climate change, with many having already experienced it, there is currently difficulty translating that awareness into tangible, operational action.

Survey respondents cited multiple reasons they have, so far, been unable to implement changes. Most frequently, ‘competing priorities and limited resources’ were cited as the key reasons preventing action to reach climate-resilient operations. For others, ‘a lack of internal expertise’ and ‘regulatory uncertainty’ were listed as prohibitive barriers to action.

Around 1 in 5 of those surveyed said they did not see a ‘material physical risk’ to their businesses. The reality is that even they depend on partners, suppliers, and customers for whom the physical climate risks are material.

Andrés Tallos, managing director of Endeavor Spain, says: “Entrepreneurs have always operated at the edge of uncertainty. They question, adapt, and build — often when no one else believes the timing is right. Climate resilience is no different. It rewards those with the vision to see risk before it materialises, the agility to respond before it escalates, and the ambition to turn a threat into a competitive advantage. That is not a new skillset for entrepreneurs. It is simply what they do.”

He added the report is a clear indication that, for many, the existing barriers to businesses being able to implement change in the fight against climate change feel prohibitive. However, without action, businesses across the continent and the world are exposed to major financial losses due to increasingly severe and frequent climate events.