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Adapting to Extreme Weather Events and a Changing Climate


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 organizations 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.