While many London businesses believe that the changing climate is already having an impact on their operations, few are quantifying the financial costs associated with climate change and, as a result, are failing to adequately invest in suitable risk mitigation strategies, according to new research, “Resiliency: Adapting to Extreme Weather Events and a Changing Climate”, published by Marsh and Base London.
62% of respondents believe that extreme weather events are already having an impact on their businesses. Furthermore, 86% believe that the impact of the changing climate is already, or will be, materially felt by their organisations in the next decade. Despite this, 84% of respondents stated that their firms currently do not record the impact or measure the costs associated with climate change. In addition, 38.8% believe that a tangible return on investment would first be required before their firms would further invest in resilience strategies relating to climate change.
Among the findings from the report:
- 100% of respondents express the view that the impact of extreme weather events will be upon us within the next 30 years at most.
- Only 5.9% of respondents state that they have a resilient repairs clause on their property insurance policy, which allows for more robust reinstatement of a property after a loss.
- 72.5% do not know if such a clause is in place.
Please register to read the report in its entirety: