The Mediterranean is boiling: what it means for your revenue, operations and strategy
The Mediterranean is boiling: what it means for your revenue, operations and strategy
This summer, the Mediterranean Sea is breaking heat records, with surface temperatures exceeding 30°C in parts of Italy and Spain. This trend signals worsening climate disruption. Rising sea temperatures pose serious risks to business operations and finances. At BDO, we emphasise that understanding climate risk is essential for organisational resilience, not just regulatory compliance. Organisations should proactively include climate risk assessments in their strategic planning, rather than respond only after issues arise.
The Mediterranean is particularly vulnerable. As a semi-enclosed sea with limited water exchange and relatively shallow depths, it heats up faster and retains heat longer than the open oceans. Recent satellite data confirm that parts of the Mediterranean have exceeded 30°C – considerably warmer than historical norms. This is not a one-off event; it’s part of a persistent, climate-driven trend.
Beyond the coast, the economic ripple effects are significant. Elevated sea temperatures fuel extreme weather events - such as floods, droughts, and heatwaves - that damage infrastructure, disrupt operations, and increase insurance premiums. Labour productivity also suffers, particularly in outdoor and coastal industries, as heat stress and health risks rise.
For companies with assets, suppliers, or customers in the Mediterranean region, the urgency is clear: climate volatility is no longer a future scenario - it’s a present-day operational risk. Proactive adaptation is essential to protect revenue, manage costs, and maintain workforce resilience.
The Mediterranean’s rising sea temperatures are more than a climate signal, they are a business stress test. From disrupted supply chains to rising insurance costs and workforce challenges, the impacts are tangible and growing. Companies that act now - by assessing risks, adapting operations, and embedding climate foresight - will be better positioned to protect value and lead through uncertainty. The time to respond isn’t tomorrow. It’s today.
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Why are sea temperatures rising?
Oceans act as Earth’s primary heat sink, absorbing over 90% of the excess heat resulting from greenhouse gas emissions. This is achievable because water possesses a high specific heat capacity, whereby it can absorb enormous amounts of energy with only gradual temperature increases. However, as global emissions continue to rise, the ocean’s buffering capacity is reaching its limits.The Mediterranean is particularly vulnerable. As a semi-enclosed sea with limited water exchange and relatively shallow depths, it heats up faster and retains heat longer than the open oceans. Recent satellite data confirm that parts of the Mediterranean have exceeded 30°C – considerably warmer than historical norms. This is not a one-off event; it’s part of a persistent, climate-driven trend.
Why it matters: direct business impacts and financial risk
Rising sea temperatures are not just an environmental issue - they are a direct threat to business continuity and financial performance. Warmer waters disrupt marine ecosystems, which can severely impact sectors like fisheries, tourism, and shipping. For example, altered fish migration patterns can reduce catch volumes, affecting supply chains and revenue for food producers and retailers. Jellyfish blooms and algae surges can shut down beaches and ports, leading to lost tourism income and logistical delays.Beyond the coast, the economic ripple effects are significant. Elevated sea temperatures fuel extreme weather events - such as floods, droughts, and heatwaves - that damage infrastructure, disrupt operations, and increase insurance premiums. Labour productivity also suffers, particularly in outdoor and coastal industries, as heat stress and health risks rise.
For companies with assets, suppliers, or customers in the Mediterranean region, the urgency is clear: climate volatility is no longer a future scenario - it’s a present-day operational risk. Proactive adaptation is essential to protect revenue, manage costs, and maintain workforce resilience.
From climate awareness to business resilience
At BDO, we help clients move from awareness to action. Rising sea temperatures are not just environmental – they are operational. We support clients in translating climate science into actionable, business-specific responses through:- Risk mapping: Identifying climate-sensitive assets, operations, and revenue streams.
- Scenario planning: Modeling how rising temperatures and extreme weather could impact supply chains, workforce availability, and customer behavior.
- Adaptation strategy: Designing tailored responses, from resilient infrastructure and insurance adjustments to workforce planning and business continuity.
- Nature-based solutions: Restoring ecosystems to mitigate risk while enhancing environmental value.
- Early warning systems: Leveraging data to anticipate and respond to climate events before they escalate.
- Cross-sector collaboration: Aligning public and private efforts to drive systemic resilience.
- Sustainability integration: Embedding climate action into governance, reporting, and investment decisions.
The Mediterranean’s rising sea temperatures are more than a climate signal, they are a business stress test. From disrupted supply chains to rising insurance costs and workforce challenges, the impacts are tangible and growing. Companies that act now - by assessing risks, adapting operations, and embedding climate foresight - will be better positioned to protect value and lead through uncertainty. The time to respond isn’t tomorrow. It’s today.
Contact us
