Business Resilience Adapting to the impacts of Climate Change and Extreme Weather Events

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1 Business Resilience Adapting to the impacts of Climate Change and Extreme Weather Events Dan Griffiths Climate Change Northwest Partnership Manager St Helens Chamber - October 2012

2 What the UK can expect Changes in annual / seasonal averages warmer, drier summers (spring and autumn too) milder, wetter winters rising sea levels Changes in extremes more very hot days more intense downpours of rain uncertain changes in storms possible increase in winter (Source:

3 Physical Impacts of Weather Weather Events Storms Heat Waves Heavy Rain Cold Snaps Droughts Impacts Damage to physical assets Flooding/snow and ice cover transport, buildings, green spaces Excessive indoor temperatures Effects on biological/industrial processes Effects on water resources

4 NW implications Over 150,000 properties are currently at risk from flooding, estimated 223% increase in damages from flood risk due to climate change. The value of property potentially non-mortgageable and uninsurable by 2080 is the highest outside of London. The Mersey Belt is increasingly vulnerable to flooding and urban heat. Increased pressures on our habitats and species from our agrieconomy and visitors, and impact on the farming sector particularly through animal health and pests/diseases. Risk to human health through dense urban areas and high levels of deprivation But... Overall our energy, water and transport infrastructure is relatively more resilient than other regions. A third of our 230,000 small businesses are currently taking action on climate change. (Derived from the UKCCRA and NW research)

5 Business Drivers INVESTORS Investors and Regulators in UK, US & Japan encouraging disclosure of climate risk. INEVITABLE IMPACTS Awareness & acceptance are increasing (e.g Floods 3.2bn) DRIVERS INSURERS Raising premiums and threatening to withdraw coverage. ENTERPIRSE RISK MANAGEMENT ISO LEGAL & REGULATORY Class action suits Adaptation Reporting Power

6 Climate as a business risk Generic framework for considering climate impacts on business areas and potential responses 1. logistics 2. process 3. finance 4. people 5. premises 6. markets Business Areas Climate Assessment Tool (Source: UKCIP)

7 Logistical Impacts Logistics impacts will include: disruption of supply chains arising from: transport disruption impacts on suppliers just in time systems increase vulnerability disruption to power or water supply for smaller companies, supply chains and power supply represent a large proportion of their exposure to the climate risk

8 Financial Impacts Financial issues will include: insurance issues: increased premiums; variable premiums; vulnerable locations; uncertainty investment issues: tests for future proofing of investment, global impacts on international investment costs: impact on raw material prices; retrofitting existing buildings and equipment could be expensive

9 People Impacts Implications for employees and customers: poor (better?) working environment: - external: construction, farming - internal: offices in summer - more complaints and lost time reputation as employer - attract and retain high quality staff

10 Premises Impacts Premises will be affected by: impacts of wind, rain, storm, fire and subsidence on building fabric and structure or grounds internal environment: less winter heating/more summer cooling design decisions based on historical climate data likely to be inadequate retrofitting existing buildings represents a major challenge sustainable construction needs to link climate change adaptation and mitigation agendas

11 Market Impacts Increasing or new markets for: Products that are more resilience e.g. heat resistant, robust, waterproof or permeable Climate risk solutions e.g. flood barriers, blinds, clean up services, insurance products, consultancy, technology for measuring or monitoring weather or impacts Products or services that cater for changing tastes, lifestyles and consumer behaviour e.g. drinks that maintain their flavour when served at low temperatures, alfresco dining

12 Process Impacts Impacts on production processes and service delivery: some business processes, equipment, assets and activities are climate or temp. sensitive food preparation and storage; some industrial processes, such as waterless printing; agriculture; server room

13 Process Opportunities Existing processes: climate change will make some processes or activities easier creating an opportunity to increase production efficiencies, save money or improve quality. e.g. a longer growing season; fewer construction stoppages due to cold weather; fewer transport problems due to cold and ice New processes: processes or activities that were previously constrained by the climate may become economically viable (e.g. new types of agricultural crops, outdoor activities, use of cold sensitive equipment)

14 How to consider your climate change risk How will I be affected by climate change? Vulnerability varies between sectors, firms and locations recent weather impacts can help in understanding this Am I vulnerable to the current climate? Identify current and potential future impacts from weather and climate What should I do? Do I know enough to act? Prioritise, using a risk based approach

15 Adaptation Options Adaptation options encompass a wide range of different actions implemented either permanently or on a temporary basis for the duration of a weather event: operational: changing inputs, process or supplier in order to reduce or eliminate the risk strategic: e.g. switching to a new product or service, changing the business model or relocation technological/ physical: ranging from large scale infrastructure projects to low tech solutions such as providing staff with chilled water in the summer

16 What to do now. Ten Top Tips: Identify the potential impacts Check your flood risk Get help and advice Learn from others Reduce risk Plan ahead Check your insurance Practice actions Raise awareness Act now, don t delay (Source: South West Tourism)

17 Useful Resources Climate change resources and links specifically for the North West of England. Environment Agency Flood Map UK Climate Change Risk Assessment/Climate Ready Programme details of climate impacts across the UK UKCIP Adaptation Wizard. Guides you through an adaptation process, introduces other UKCIP resources, and acts as a guide to adaptation UKCP09 Climate Projections. Allow you to explore what climate we have experienced and explore what future climates we might experience BACLIAT: Business Areas Climate Assessment Tool. Designed to explore the changing climate s impacts on a business or organisation. The BITC Business Resilience Health Check tool helps businesses to become more resilient to interruptions that they may face, identifies areas where business operations could be impacted by climate change, and offers advise on how businesses can adapt and prepare for these changes. May Day Network of businesses focussed on climate change. (Source: South West Tourism)

18 Dan Griffiths Adapted from a presentation by Sustainability West Midlands