Climate change is increasingly becoming a financial and operational risk for Slovenian companies, affecting investment decisions, supply chains and potentially the cost of bank financing, business and public-sector representatives said at a conference on September 15.

Europe is warming about twice as fast as the global average, while Slovenia has experienced a temperature increase of more than two degrees Celsius over the past six decades, according to data presented at the Green Breakfast event organised by the CER Partnership for Sustainable Economy.

Weather and climate-related events caused about 929bn euros in economic losses and around 440,000 deaths in Europe between 1980 and 2025, said Blaž Kurnik, head of the Climate Risks and Resilience Unit at the European Environment Agency.

Slovenia has been particularly affected by the 2023 floods, with cumulative losses equivalent to almost 9,000 euros per capita, Kurnik said.

"The climate is changing faster than we can keep up with the legislative framework and implementation. We are always a little behind," he said.

Around half of climate-related losses in Europe are uninsured, with the proportion rising to about 90% in southern and eastern Europe, Kurnik said, increasing the burden on governments and households.

The effects are also becoming more relevant to companies' financial planning. An initial assessment by CER found that companies had an average climate preparedness level of about 61%, while only 15% currently factor climate risks into financial and investment planning.

At the same time, 95% of participating companies identified business opportunities linked to climate adaptation.

Banks are also beginning to incorporate physical climate risks into lending decisions. Rok Kogej of the Association of Banks of Slovenia and Intesa Sanpaolo Bank said lenders increasingly need information such as the location of production facilities and the share of revenue generated at different sites.

"The more resilient a client is to climate change in various dimensions, the cheaper sources of financing they will be able to secure," Kogej said.

Businesses are already responding. Food group Atlantic Grupa cut annual water use in one process from about 8,500 cubic metres to 500 cubic metres after introducing free cooling technology, while spa operator Thermana Laško said floods in 2023 caused about 7mn euros in damage and prompted it to raise critical equipment in future projects.

Energy infrastructure requires even longer-term planning. ELES said transformer stations are designed for about 40 years and transmission lines can operate for up to a century, making historical climate data insufficient for new investments.

The World Business Council for Sustainable Development said 70% of surveyed global companies had completed climate-risk assessments, while 63% were developing adaptation plans.

The LIFE4ADAPT project, under which the event was held, is a seven-year programme worth about 26.5mn euros aimed at developing climate services, financial mechanisms and practical adaptation measures in Slovenia.

" A country cannot be climate resilient if its economy is not resilient."