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Climate change is reshaping how companies do business

Ccompanies exposed to higher climate change risks are deliberately reducing their reliance on a small number of major customers. Instead, they are spreading sales across a broader customer base as a way of managing risk.

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Climate change is not only disrupting supply chains and asset values, it is also quietly reshaping companies’ choice of business partners.

New research based on nearly two decades of data from thousands of US-listed firms shows that companies exposed to higher climate change risks are deliberately reducing their reliance on a small number of major customers. Instead, they are spreading sales across a broader customer base as a way of managing risk.

The study, published in Business Strategy and the Environment, finds clear evidence that climate risk is driving this strategic shift, rather than simply coinciding with it. Firms facing greater exposure to extreme weather, climate-related disruption, or regulatory transition risk are less likely to concentrate revenue among a handful of large buyers.

Amplifying shocks

Authors Dr Eric Boahen, Dr Cuong Nguyen and Thi Thuy Trang Nguyen found this behaviour is particularly pronounced among firms with strong corporate social responsibility performance, higher levels of innovation, and heavy investment in physical assets such as plants and infrastructure. These firms appear to recognise that customer concentration can amplify climate shocks.

“What this evidence shows is that climate risk is no longer abstract or future-facing. It is shaping everyday business decisions in the here and now,” said Dr Boahen, Cluster Lead for Accounting, Finance and Economics at the University of East London.

“Boards and executives are not just thinking about emissions or disclosure. They are quietly rethinking who they depend on for revenue. When climate shocks can hit firms and their biggest customers at the same time, relying too heavily on a small number of clients becomes a strategic vulnerability.”

The research draws on real-world behaviour observed across almost 4,800 firms over a 17-year period.

Why it matters

For investors and lenders, the study highlights customer concentration as a potential blind spot in climate risk assessment. Companies with diversified customer bases may be better insulated against earnings volatility, financing stress, and supply-chain disruption.

For boards and regulators, the findings point to customer structure as a governance issue. Persistently high customer concentration in climate-exposed regions may signal weaknesses in risk management.

“Climate resilience is not just about where assets are located or how much carbon a firm emits,” Dr Boahen said. “It is also about how exposed a company is through its commercial relationships. Customer concentration is now a climate issue, whether companies label it that way or not.”

Ethical Biz

2GO mobilizes volunteers, supports nationwide coastal cleanup with logistics and supplies

As part of the annual global initiative, 2GO teams participated in coastal cleanup activities across Cagayan de Oro, Zamboanga, Davao, Cebu, and Manila, helping remove waste from shorelines and supporting efforts to keep coastal communities clean.

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Reinforcing its commitment to environmental stewardship and cleaner coastal communities, 2GO Group, Inc. mobilized 149 employee-volunteers across key coastal locations nationwide for this year’s International Coastal Cleanup (ICC), in partnership with SM Cares.

As part of the annual global initiative, 2GO teams participated in coastal cleanup activities across Cagayan de Oro, Zamboanga, Davao, Cebu, and Manila, helping remove waste from shorelines and supporting efforts to keep coastal communities clean.

In Manila, 2GO volunteers collected a total of 207 kilograms of waste from the cleanup sites. 2GO estimates that the 149 volunteers diverted approximately 768 kilograms of coastal waste across all participating locations.

Beyond volunteer participation, 2GO has continued to strengthen its support for the ICC through material donations and logistics services. Since establishing its partnership with SM Cares for the ICC in 2023, the company has expanded its support to help equip volunteers and facilitate the movement of essential cleanup resources.

Supporting cleanup efforts through people, supplies, and logistics

For this year’s nationwide cleanup, 2GO donated protective gloves for volunteers, building on its previous contributions of cleanup sacks in 2024 and 2025.

The company also provided end-to-end transportation and logistics support for the delivery of heavy-duty weighing scales to cleanup sites nationwide. Building on logistical support initiated in 2025, the service helped ensure that collected waste could be accurately weighed and documented across participating sites.

By combining the dedication of its employee-volunteers with targeted material support and logistics solutions, 2GO helps drive collective action toward cleaner coastal environments and healthier communities across the country.

As a transportation and logistics company serving communities across the Philippine archipelago, 2GO recognizes the importance of supporting the communities and coastal environments connected by its network. Its continued participation in the ICC reflects 2GO’s commitment to contributing its people, resources, and capabilities to environmental initiatives across the country.

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Ethical Biz

FedEx Cares helps 2,400 Filipino students start the school year healthier

This initiative is part of FedEx Cares, the company’s global community engagement program, and aims to improve the health and well-being of Filipino students ahead of the upcoming school year.

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Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, collaborated with international non-profit Feed the Children to address health challenges by donating hygiene kits to 2,400 grade school children from fishing and farming communities in Bohol and Zamboanga del Norte.

This initiative is part of FedEx Cares, the company’s global community engagement program, and aims to improve the health and well-being of Filipino students ahead of the upcoming school year. A total of 14 FedEx employees supported the effort by assembling and delivering the kits, which include soap, shampoo, face towels, toothbrush and toothpaste – helping children maintain proper hygiene and stay focused on their education.\

Beyond providing essential supplies, the program promotes lasting behavior change through school-based orientation sessions in 11 schools, encouraging consistent, daily hygiene practices among students. Studies show that handwashing with soap can reduce diarrheal diseases by up to 30% and acute respiratory infections by up to 20%, underscoring the importance of early education and access to basic hygiene tools. Oral health remains a growing concern, with the Philippine Dental Association reporting that 72% of Filipinos suffer from tooth decay, with school-aged children among the most affected, making it a leading cause of school absenteeism.

“At FedEx, we believe that access to basic hygiene is fundamental to a child’s ability to learn and thrive. Through this initiative, we are not only delivering essential supplies but also fostering healthier routines and stronger foundations for learning,” said Maribeth Espinosa, managing director, FedEx Philippines. “By providing hygiene kits and health education, we aim to create a lasting impact and empower Filipino children to stay in school and reach their full potential.”

Since 2023, FedEx has worked with Feed the Children to deliver resources that support the needs of more than 5,000 children across the Philippines.

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Ethical Biz

AXA Philippines mobilizes over 2,000 employees nationwide to support communities through volunteerism

This year’s celebration underscored the company’s belief that they can achieve more meaningful change when they work as one, while marking a shift toward long-term partnerships that empower communities to grow sustainably.

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AXA Philippines, one of the largest and fastest-growing insurance companies in the country, reaffirmed its commitment to create lasting social impact through AXA Week for Good (AWFG) 2026, bringing together over 2,000 employees nationwide under the theme “AXA on a Mission: Together We Move Forward.”

This year’s celebration underscored the company’s belief that they can achieve more meaningful change when they work as one, while marking a shift toward long-term partnerships that empower communities to grow sustainably.

“When our employees come together, the impact multiplies. This year, we’re investing more into partnerships that can help communities thrive in the long run. We wanted volunteerism to go beyond participation and become part of a sustained journey with our partners through livelihood initiatives, skills sharing, and learning and sustainability programs,” said Sharon Hernandez, Chief Human Resources Officer of AXA Philippines.

From Volunteerism to Sustainable Community Development

A key milestone of this year’s AWFG is the continued development of the Medinilla Café, a livelihood project in Siniloan, Laguna that grew from AXA’s tree-planting and forest restoration efforts last year in collaboration with Fostering Education and Environment for Development Inc. (FEED). Through the first-ever “Declutter for a Purpose” initiative, AXA employees raised cash donations by selling preloved items to help sustain the café’s operations and create livelihood opportunities for local residents. The unsold goods will be donated to partner communities to extend the initiative’s impact and minimize waste.

Building on the success of AXA Forest, the company is also expanding support to community gardens in partnership with Project PEARLS, a non-profit organization with a mission to help the poorest of the poor children have a better life by giving them PEARLS: Peace, Education, Aspiration, Respect, Love and Smiles through education, empowerment, nutrition, nourishment, and healthcare. The partnership aims to help improve food security and create potential income sources for families.

Learning That Inspires Action

Throughout the week, employees also deepened their understanding of social and environmental challenges through the “Impact for Action Podcast Series,” featuring experts and nonprofit partners who shared practical insights on literacy, sustainability, disaster preparedness, workplace safety, circular economy practices, and environmental stewardship.

Partner organizations included BINHI English Literacy Foundation, FEED Inc., Asia Society for Social Improvement and Sustainable Transformation (ASSIST), Humble Sustainability, Upstyle, The Soilmate Collective Inc., and AXA Foundation. The series also highlighted volunteer opportunities that extend beyond AWFG, encouraging year-round engagement.

Employees Turning Everyday Actions into Lasting Impact

Additionally,  employees participated in a range of hands-on activities over the course of the week.  An “e-Waste Collection Drive” promoted responsible disposal by collecting used electronic devices for refurbishment or recycling, with proceeds benefiting Project PEARLS.

Meanwhile, remote volunteers contributed through “Learning Buddies,” creating reading activity sheets for young learners, and “Love in Every Bite,” sharing nutritious, budget-friendly recipes with partner communities.

AXA Week for Good is the flagship annual celebration of AXA Hearts in Action, the company’s global employee volunteering program. With a focus on community partnerships, this year’s AXA Week for Good continues to show the impact of collective action, through volunteerism, skills sharing, and supporting livelihood initiatives, reflecting the company’s commitment to helping protect what matters and build more resilient communities.

For more information about AXA Philippines and its community initiatives, visit www.axa.com.ph

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