weathering the storm: the impact of climate change on london's economy

Weathering the StormThe Impact of Climate Change on London’s Economy

An Executive Summary

Economy Committee

Investment Supply Chain

InsuranceLack of Adaptation

Over £400billion UK assets are in countries vulnerable

to climate change

Fossil fuel investments face a carbon bubble if global

emissions are capped

60% of SMEs have no plan for severe weather

54% of FTSE 100 have no climate adaptation

business strategy

Critical overseas supply chains are vulnerable to the effects of climate change…

…leading to shortages and price rises e.g. of

tech components / food supply

A 4% rise in global av. temperature → 14% rise in annual insured losses

Sector will struggle to provide commercial cover

in the face of Climate Change

Risks of Climate Change for London’s

Economy

Global city, global risksLondon’s status as a global city makes its economy increasingly vulnerable to climate change risks ‘imported’ from overseas…

Photo credit: Tom Simpson

overseas supply chains

for critical products e.g.

food are at risk from flooding and drought The UK has

>£400billion assets in countries

vulnerable to climate change e.g. India

How prepared are businesses?

46 per cent of FTSE 100 firms have no adaptation business strategy in place for climate changeCarbon Disclosure Project, Insights into Climate Change Adaptation by UK Companies, 2012

60 per cent of small & medium sized enterprises have no plan in place to deal with extreme weather conditionsFederation of Small Businesses, Severe Weather Survey, 2014

Photo credit: Tom Simpson

London and its economy, are not fully resilient in the face of climate change.

Our report makes a number of recommendations, including…

 Our investigation concluded that…

Photo credit: Tom Simpson

1. Map major supply chain vulnerabilities

The London Climate Change Partnership should map the major supply chain vulnerabilities of London’s economy.

2. Launch a Mayoral award for adaptation

A Mayoral award for climate change adaptation should be launched to encourage adaptation planning and sharing of best practice.

Photo credit: Tom Simpson

3. Invest responsiblyThe Mayor should commit to the principle of a transition away from investments in coal. The London Pension Fund Authority should explore options for managed divestment of their funds.

4. Diversify London’s economyThe Mayor should integrate climate change adaptation into his Economic Development Strategy…

…to drive forward a resilient, low carbon economy, develop London’s adaptation skills bases and encourage further innovation in the green economy.Photo credit: Tom Simpson

Further information

Download ‘Weathering the Storm’ and read more about our investigation at www.london.gov.uk/weatheringthestorm.

Scrutiny contactCharlotte.Maddrell@london.gov.uk0207 983 5618

Media enquiriesLisa.Lam@london.gov.uk0207 983 4067

Please share this report with your networks and if you would like to show your support please tweet with the hashtag #weatheringthestorm