The report underscores the widespread and systemic nature of climate-related risks. Local and regional governments, as well as businesses, are increasingly vulnerable to financial losses due to extreme weather. Key sectors such as infrastructure, insurance, and supply chains face heightened exposure. The financial impacts include reduced production capacity, asset impairment, and operational shutdowns. Subnational governments have identified budget constraints as a major barrier to implementing necessary adaptation measures. The cost of inaction is projected to far exceed the investment required for mitigation, highlighting the urgency of addressing these risks.