Flooding tops list of climate risks posed to physical assets, says UK-US executive survey

Energy & Climate Change, Flooding

61 per cent of decision-makers at large businesses in the UK and US have named flooding as the greatest climate risk to their physical assets, including offices, warehouses, or other buildings, according to the findings of a new survey.

The findings from the Cervest 2021 Climate Intelligence Outlook, which included input from 800 senior executives responsible for climate-related strategies in the UK and US, continued the above list of climate risk threats by revealing that that extreme precipitation, including snow, rain and hail (59 per cent), heat stress (46 per cent), wind stress (40 per cent), and drought (33 per cent) also weighed heavily on executive's minds.

Further research findings revealed that while 87 per cent of respondents felt their organisation understands the financial risks posed by climate change, just under half (47 per cent) of organisations have yet to integrate climate into their financial risk management.

Additional figures showed that in the UK 44 per cent of those questioned didn't believe their company has allocated enough resources – including budget and people – to effectively manage climate risks. This figure stood at a lower 32 per cent in the US.

And when it came to net zero 77 per cent of those in the UK, versus 84 per cent of those in the US, argued that their strategy emphasises net zero emissions over mitigating physical risks.

Founder and CEO of Cervest Iggy Bassi, argued that a focus on decarbonisation, while key, is not enough to protect organisations and investors against the risks of climate change. Continuing he said:

“Decades of greenhouse gas emissions have locked us into decades of accelerating climate volatility which translates into trillions of dollars of assets at risk.

"Even if we were to reach net zero tomorrow, it would not reverse the persistence and intensification of today’s extreme weather events. Organisations need to understand how to adapt with climate change and build resilience into their strategy.”

CIWEM's Property Flood Resilience training is opening in November 2021, why not register your interest today?

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