As global damage from climate-related disasters continues to rise, adapting to climate change is not just about resilience but also rediscovering nature’s own mechanisms, the keynote speaker told guests.
Jan Pokorný, co-founder and director of the research organization Enki, o.p.s., emphasized the importance of reconnecting with natural systems to address the climate crisis better.
The forum, hosted on March 25 by Csaba Kandrács, deputy governor of the National Bank of Hungary, served as a platform for dialogue between corporate, scientific, and civil leaders on how best to approach the adaptation imperative.
Extreme climate and weather events are increasing in frequency and severity, with global damage now amounting to an estimated USD 16 million per hour. Much of this damage, Pokorný says, results from a general lack of understanding about the interconnectedness of natural systems.
Modern infrastructure and organizational systems are no longer adequate for addressing the complexity of climate-related challenges. Pokorný argues that adaptation must now be prioritized across sectors. He adds that nature still offers vital solutions, provided we learn to interpret and harness them effectively.
In the World Economic Forum’s 2025 report, leaders identified extreme weather as the second most significant risk over a two-year outlook and the number one threat over the coming decade. These findings reinforce the idea that current landscape and environmental management approaches are proving insufficient.
“Improper landscape management, stemming from ‘plant illiteracy,’ i.e., the low level of human knowledge about plants, is leading to an increase in continental droughts, rising local temperatures, and the development of an arid climate, interrupted by torrential rains and extreme weather events,” Pokorný told the BCSDH breakfast.
“This ignorance also affects climate adaptation, as we fail to properly utilize nature in this process. People do not understand the role of plant transpiration in the ‘air-conditioning’ function of vegetation, its impact on the water cycle, or the interactions between plants and the atmosphere,” the research director warned.
“By gaining a deeper understanding of these processes, we can equip ourselves with numerous tools for both climate mitigation and adaptation,” Pokorný said in his thought-provoking presentation.
Despite growing awareness of climate impacts, most businesses remain ill-prepared to address them. According to BCSDH’s “Towards Net Zero” survey published in January, although 91% of companies report experiencing the effects of climate change, only 16% have implemented a concrete action plan for climate adaptation.
This gap is particularly alarming given Hungary’s heightened vulnerability to climate change relative to its relatively minor role in global greenhouse gas emissions.
“The frequency of extreme weather events has increased, and the business sector must also prepare for this. We need to assess how these changes may impact business operations and develop strategies for adapting to our changing world,” said Attila Chikán Jr., president of BCSDH, in his opening speech.
“Although several international developments are working against sustainability efforts, this does not mean that companies can relax their commitments regarding climate change. Climate change is not slowing down; it is becoming increasingly severe,” he warned.
The growing regulatory pressure to disclose environmental performance has led to a rise in the number of corporate sustainability strategies and the integration of performance indicators.
These tools have become essential for assessing physical climate risks and guiding businesses toward more resilient and adaptive operations. Integrating sustainability considerations into corporate finance is now seen as a vital pathway to enhancing long-term resilience, the BCSDH forum was told.
However, current global (especially American) and European policy trends may lead to a softening of previous ambitions around climate mitigation. Even so, Pokorný and others at the forum warned that climate adaptation can no longer be postponed. Environmental changes are already underway, and they are accelerating.
The second half of the breakfast forum consisted of a closed session that brought together senior representatives from the corporate, scientific, and civil sectors. The discussions focused on identifying effective pathways for adaptation, practical implementation strategies, and the critical role of water in climate resilience efforts.
The session also included presentations of business-oriented case studies, with several firms sharing their ongoing adaptation measures.
The discussions were moderated by Barbara Wassen, Climate Ambassador-at-Large at the Ministry of Energy; Dr. Gábor Bartus, secretary of the National Council for Sustainable Development; and Dr. Károly Kovács, president of the Hungarian Water and Wastewater Technology Association and CEO of Pureco Ltd. Their expertise helped frame a picture of Hungary’s climate vulnerability and the systemic changes needed to address it.
The insights gathered at the forum will be developed further during executive roundtable discussions scheduled for May. These high-level meetings aim to produce a set of actionable recommendations tailored for corporate decision-makers, which will be unveiled at the BCSDH business lunch in October.
The forthcoming guidelines are expected to address Hungary’s current climate context, identify specific challenges, and highlight strategic enablers to support businesses on the path to adaptation.
BCSDH says it has reaffirmed its commitment to supporting the business community with transparent, evidence-based recommendations and tools. Encouraging businesses to take action remains a top priority, especially in adaptation planning.
The event underscored that climate adaptation is no longer just an environmental issue but a strategic and economic one that must be incorporated into the core of business operations.
This article was first published in the Budapest Business Journal print issue of April 4, 2025.
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