How climate disruption affects business strategy
Flooding, drought and other extreme weather events are increasingly disrupting global trade. In 2023, tropical cyclones caused 117 days of port downtime globally. The World Economic Forum estimates that by 2035, climate-driven fixed asset losses will result in an approximately 7% drop in earnings for the average company. Even industries not directly exposed to extreme weather – such as high tech or life sciences – face growing financial strain from supply chain disruptions, rising operational costs and climate-related risks to infrastructure and logistics.
Notably, transition risks – the challenges businesses face as industries move toward low-carbon models following stricter climate policies – are reshaping entire sectors. In the automotive industry, growing demand for electric vehicles (EVs) is a direct result of mounting regulatory and market pressures to decarbonize. As EV demand increases, traditional supply chains centered on fossil fuel-powered vehicles are being reimagined. The Asia-Pacific EV market alone is projected to reach $407 billion in revenue in 2025, creating significant knock-on effects on everything from battery manufacturing to charging-infrastructure development.
In response, businesses are redefining their strategies. Many are moving production closer to final markets – a tactic known as nearshoring – to reduce carbon emissions and exposure to climate-related risk.
Understanding these complex dynamics requires more than traditional market analysis. It demands fresh perspectives and innovative methods that anticipate emerging challenges rather than simply reacting to them. This is why academic partnerships have become essential for forward-thinking organizations.
Forging a link between academia and industry
In 2017, the Allianz Group launched the Allianz Climate Risk Award (ACRA) as a first-of-its-kind initiative. ACRA invites PhD candidates and postdoctoral researchers to showcase their findings on how extreme weather events intensified by climate change create risks – and to uncover innovative, technology-powered solutions.
In 2025, Allianz Trade is joining ACRA for the first time with a new category focusing specifically on the relationship between climate change and global trade. Applicants are invited to submit research covering topics from biodiversity loss to carbon-driven changes in global trade routes. Submissions are open until August 31, 2025.
Transforming insight into action
Joining ACRA is a natural extension of Allianz Trade's broader sustainability strategy and updated sustainability roadmap. It also provides a valuable opportunity to learn from fresh perspectives, expanding market research capabilities and deepening understanding of the climate crisis.
In this inaugural year, Allianz Trade is eager to review research projects exploring how climate-related weather events are anticipated in academia in relation to global trade.
ACRA has played a key role in recognizing exceptional academic talent. Several past participants have joined Allianz Group, strengthening research capabilities and deepening connections to sustainability communities. Their influence is already visible in Allianz's underwriting strategies, resilience and adaptation solutions, broader economic research and policy development discussions.
An investment in understanding for the road ahead
Our involvement in the Allianz Climate Risk Award will strengthen our expertise of emerging climate risks, enabling us to go the extra mile to support businesses across the globe in the face of today’s climate realities. By integrating the perspectives of young voices in academia to the on-the-ground expertise of our teams with rigorous market and economic research, we will be in an even better position to help businesses across the globe grow with confidence.
Learn more about the ACRAs and how to submit your research
