February 2025
Tutorial

Preparing Business Leaders for an Era of Climate Instability: Understanding and Managing Physical Climate Risk

By: Michael W. Toffel and Spencer Glendon

Format:Video
| Language:English

Abstract

In this compelling video, Spencer Glendon, founder of Probable Futures and Executive Fellow at Harvard Business School, describes the profound implications of climate change for businesses, the economy, and societies around the world. Drawing from his background in systems engineering, economics, and asset management, Glendon underscores how a once-stable climate enabled the rise of predictable infrastructure, industry, and culture. Now, with escalating climate variability, he reveals that the assumptions underpinning our global systems subject to increasing risk. Using data from climate model projections and real-world examples, Glendon demonstrates the urgency for organizations to integrate an understanding of climate change into their decision-making to foster more resilient and adaptive strategies. This video serves as an essential resource for faculty aiming to engage students in understanding climate risks and the future of strategic, informed adaptation across sectors. This video can be paired with the "Physical Climate Risk" background note (624-059) written by Glendon with Michael Toffel and Alison Smart.

Keywords

Risk; Uncertainty; Modeling; Climate Change; Adaptation; Risk and Uncertainty; Risk Management

Citation

Toffel, Michael W., and Spencer Glendon. Preparing Business Leaders for an Era of Climate Instability: Understanding and Managing Physical Climate Risk. Harvard Business School Tutorial 625-709, February 2025.