Climate change is directly relevant to the public because its effects on firms reduce productivity, weaken economic performance, and can ultimately affect jobs, incomes, and prices. Evidence from Slovakia, based on firm and weather data for 2013–2023, shows that higher spring and summer temperatures significantly reduce sales, revenues, and profits, especially in agriculture, construction, manufacturing, and transportation.
Heat mainly lowers overall production efficiency, while firms typically respond by cutting costs rather than investing in adaptation. As climate risks intensify, promoting business resilience through incentives for heat-adaptation technologies, investment in climate-resilient production, and targeted support for the most exposed sectors becomes increasingly important.
