Businesses across the UK are increasingly hit by the effects of climate change, according to fresh data shared with Net Zero Investor this morning.
Insurance broker Gallagher found that two thirds of those surveyed said a rise in global temperatures of 2°C, the upper limit set by the 2015 Paris Agreement, would have a “significant” impact on their business.
The most common effect of climate change on British businesses was disruption from extreme weather events, including flooding, storms and heatwaves (52%), followed by climate change related increased operating costs (47%), supply chain issues (39%) and physical damage (35%).
The research also found that 16% of businesses have already been forced to change their business model due to the impacts of a changing climate.
However, despite the concerns expressed among businesses, climate change was ranked behind the cost of living and energy crises as a priority issue.
In fact, more than half of all business leaders (53%) were found not to have taken any steps to mitigate against the risks, with a third failing to include climate change on their risk registers.
Neil Hodgson, managing director of risk management at Gallagher, said: “The country is committed to reducing our emissions and reaching net zero by 2050 but, with half of businesses reporting impacts, it seems we are already on the backfoot."
According to the Gallagher research, the sectors facing the greatest pressures from climate change include hospitality and tourism (57%), banking and finance (53%) and retailers (50%), which could demonstrate a threat to the UK’s service-based sectors.
The research was conducted by Hanover Communications on behalf of Gallagher, and reported from a sample of 1,510 people in middle management roles and above.
A February report from the SME Climate Hub showed that six in ten small and medium-sized enterprises have identified a lack of outside support in achieving net zero, citing challenges related to lack of resources and internal expertise.
