Climate change from overseas is a bigger threat to UK than climate change from home

In order to protect national interests and sustainability measures at home, UK investors must consider their environmental impact abroad, a major advising firm has warned.
A new study by PriceWaterhouseCoopers (PwC) has identified that climate change from overseas could have a larger effect in the UK, bigger than the effect from the climate change from home.

The PwC report commissioned by Department for Environment Food and Rural Affairs (Defra) and entitled, 'International Threats and Opportunities', identified key areas of threats. These included damages to financial assets due to extreme weather, increased frequency of humanitarian assistance, volatility in food prices, which include political impact on food availability, and an increased demand for UK Governmental services abroad.

But the report also identified opportunities for UK investors. Because Britain is a leader in sustainability and reduction of carbon emission measures, it suggested the UK could be a leading exporter of adaptation goods and services such as flood defence, climate modelling, and insurance.

Head of Environment at Corporate Risk Systems, Richard Ball commented ‘ this international perspective, brings home the global impacts of environmental issues. The NEW ISO 14001 model, recognises the risks and opportunities organisations will face in the next 20 years need to be identified and planned for if currently successful organisations are going to continue to survive and grow. Organisations need to act now to ensure threats to their operations, supply chains and customer base are effectively managed. Environmental Management is  Business planning on a different timescale!’ For more information on our range of environmental management courses for the workforce, management and environmental practitioners contact ros.stacey@crsrisk.com.

Countries UK vulnerable to
The report identified three categories of vulnerability for the UK from overseas countries: low threat, watch list, and priority countries. The priority countries include such names as India, China, and some African countries, like Sudan and Nigeria, but also the US, Spain and Germany.

It concludes the UK can't afford to think of itself in a secluded manner when it comes to risks in investment, supply chains and trading. And it calls for greater cooperation between private and public sector officials, as international climate concerns impact both sectors.

"Whilst further detailed modelling is needed, the report’s findings are an unequivocal call to action for business and policy-makers alike to examine how the UK can avoid the worst impacts of climate change globally, and demonstrate the business case for further and faster action to tackle rising emissions," Richard Gledhill, partner at PwC, said.

Areas of growth 
PwC identified areas of growth it has most confidence in as the food supplies sector and reducing the physical damages to financial assets due to extreme weather.

Potential reduction in shipping costs to the Arctic circle as well as a greater global diplomatic cooperation seem to be the other opportunities identified by the study.

Infrastructure-wise, the UK could gain an increased access to energy supplies in countries that do not require as much energy.

"Taking action now increases the UK’s capacity to adapt and also ensures we make the most of the opportunities, by investing in the skills, R&D, and services that are needed. The findings are a first step in understanding the likely possible impacts on the UK and the unavoidable consequences of climate change in other countries," Gledhill said.

The report calls on investors to see the linkages between domestic and international climate changing threats. The recommendations also mention that companies and governments should have a better understanding of supply chains as well as a development of better monitoring systems.

Source www.greenwisebusiness.co.uk