Many of London’s businesses are ill-prepared for climate change risks: London Assembly Economy Committee report

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Published: Monday, 03 August 2015 07:21

A new report by the London Assembly Economy Committee states that 54 percent of FTSE 100 firms have no business adaptation strategy in place for climate change. The report says that this means that these companies are ‘ill-prepared for climate change risks’.

The report ‘Weathering the Storm’, looks into the impact of climate change on London’s economy in terms of risks and opportunities. Other key findings include:

• Evidence suggests that 60 percent of small and medium sized businesses have no plan in place to deal with extreme weather conditions.
• London’s investment dependence on fossil fuels is a growing risk. It’s time for responsible financial investment away from coal.
• The capital’s status as a global city makes its economy increasingly vulnerable to climate change: London’s businesses not only face extreme weather like flooding, drought, heatwaves at home, but also ‘import’ risks through the insurance sector, overseas investments and international supply chains.

The report makes a number of recommendations, including:

• Little work has been done to establish the full impact of extreme weather events on London’s supply chains. The London Climate Change Partnership should map the major supply chain vulnerabilities of London’s economy.
• The Mayor should drive forward a resilient low carbon economy for London by promoting skills in this area and encourage innovation in the green economy.
• Climate change adaptation should be integrated into the Mayor’s Economic Development Strategy, as currently it doesn’t feature.

Read the report (PDF).