Climate Change: An Economic, Human, and Business Challenge

Climate change is no longer a distant issue, its impacts are now part of our everyday lives: prolonged droughts, forest fires, historic heatwaves, and increasing water scarcity. Beyond environmental consequences, the economic and social effects of climate change are reshaping how industries operate, how communities live, and how markets evolve.

According to the World Bank, if urgent action is not taken, climate change could push over 130 million people into poverty by 2030. Another equally alarming figure is that by 2050, over 216 million people may become internally displaced due to climate-related causes. This means millions may be forced to leave their homes because of rising sea levels, extreme weather events, or the loss of arable land. Latin America is among the most vulnerable regions.

In Mexico, the impacts of climate change are already evident and are deeply affecting economic development. The country's natural resources, essential to key sectors like agriculture, tourism, energy, and manufacturing, are under serious threat. Food production has become increasingly uncertain, insurance costs are rising, and public and private infrastructure must adapt to more extreme and volatile conditions.

For instance, droughts are critically affecting agricultural yields, directly impacting food security and the income of millions of producers. The lack of rainfall, combined with declining soil quality, is destabilizing entire regions, particularly in central and northern states. This situation results not only in lower harvests but also in multibillion-peso losses for producers, governments, and businesses linked to agri-food value chains.

In this context, the private sector cannot remain on the sidelines. We have a clear responsibility to accelerate the transition toward more sustainable, resilient, and inclusive models. Now more than ever, companies must view themselves not only as productive entities but as transformational agents of their environments. This involves rethinking inputs and production processes, forming strategic partnerships, and engaging human talent, especially women and youth.

Here are five key actions to combat climate change from a business perspective grounded in sustainability, innovation, and inclusion:

1. Promote a Regenerative Economy. Going beyond “do no harm” is no longer enough. The new goal must be regeneration. Regenerative agriculture is a tangible example of how to restore soils, conserve biodiversity, and capture carbon while producing more and better. Across various regions of Mexico, practices like minimum tillage, cover cropping, crop rotation, and conservation agriculture are being implemented. These models deliver not only environmental but also economic benefits: they increase resilience, reduce costs, and open access to sustainable markets.

2. Invest in Purpose-Driven Innovation. Science and technology are indispensable allies in the fight against climate change. Purposeful innovation — aimed at solving real-world problems — should be a business priority. Digital tools in the agricultural sector, such as climate monitoring platforms, precision agriculture systems, and water-efficiency sensors, are helping producers optimize inputs, reduce losses, and anticipate extreme weather. These solutions are also creating new job opportunities and encouraging rural entrepreneurship, particularly among youth.

3. Reduce Water and Carbon Footprints. Productive sectors must commit to measurable and ambitious goals for reducing emissions and improving water efficiency. In Mexico, there are already public-private initiatives for reallocating water concessions to communities facing water scarcity, as well as programs to optimize irrigation cycles in crops like corn. These efforts have proven successful and replicable, showing that sustainability and productivity can go hand in hand.

4. Include Women as Leaders in Climate Resilience. Climate change affects women and men differently, but it also offers a chance to close historical gaps. Rural women, for example, often have less access to land, credit, and technical training. However, when actively included in productive systems, the benefits are magnified. Investing in women’s training, leadership, and access to sustainable technologies is an effective and just way to strengthen community resilience to climate challenges.

5. Build Transformative Alliances. Climate change demands unprecedented collaboration. The only way to move forward with speed and depth is through multi-sector partnerships. Businesses, governments, civil society, and academia must work toward shared goals, exchanging data, experiences, and capabilities. The Sustainable Development Goals will remain out of reach unless we act collectively. It’s essential to build dialogue platforms, climate financing mechanisms, and regulatory frameworks that incentivize joint action.

Climate change is not just an environmental agenda, it’s an economic, social, and human rights issue. Every decision we make as business leaders has the power to accelerate — or hinder — this transformation. Today, we face not only a great challenge but also a unique opportunity to redefine how we do business, understand prosperity, and shape the future. And that opportunity cannot wait.