London firms unprepared for climate change risks

Businesses in the capital are vulnerable to extreme weather

If you have ever found films such as Twister or The Day After Tomorrow somewhat fanciful, then the London Assembly has news for you.

According to its latest report Weathering the Storm, it is the companies that have prepared for extreme world weather that are best placed to prosper.

Compiled by researchers at the Assembly’s Economy Committee, the report has raised a host of red flags, indicating that firms of all sizes are failing to take the threat of climate-change-related weather emergencies seriously. The report revealed:

• 54% of FTSE 100 firms have no business-adaptation strategies in place for dealing with the effects of climate change
• The same applies for 60% of SMEs
• London’s investment dependence on fossil fuels is a growing risk, signalling the need for responsible financial investment away from coal-based industries
• The capital’s exposure to risks in other regions makes its economy increasingly vulnerable to climate change. In addition to facing the prospect of domestic extreme weather in the shape of flooding, heat waves and droughts, London ‘imports’ risks through the insurance sector, foreign investments and global supply chains

Among its recommendations, the report has asked the London Climate Change Partnership (see www.climatelondon.org.uk) to draw up a detailed map of the risk exposure that the capital’s business community is incurring through its lack of preparation and overseas links.

The committee has also urged London mayor Boris Johnson to drive forward a resilient, low-carbon economy in the city by promoting a combination of relevant industry skills and green innovation.

Report author Jenny Jones said: “Too little is being done to understand and prepare for the potential costs of climate change. London faces a great unknown when it comes to how our supply chains and economy will be hit by extreme weather events.

“For example, the damage from the 2011 floods in Thailand – where IT component parts are made – [triggered] much higher prices across the global IT industry, including in London. A much worse situation would be if too many harvests failed and affected our food supply.”

She added: “Detailed work is absolutely essential to secure London’s future economic prosperity. We need to diversify London’s economy and further invest in our green economy. That way, our city will be stronger and more resilient whatever the level of future global warming.”

Download a PDF of the full report from http://tinyurl.com/oz4d55s