Climate Change ‘Not Critical’ Says IRM Survey

by Stewart Douglas

Story link: Climate Change ‘Not Critical’ Says IRM Survey

Climate change is not a prominent issue for businesses, according to figures from a survey conducted by the Institute of Risk Managers at their annual Risk Forum.

The study into the preeminence of climate change and carbon emissions found that the majority of those surveyed had not considered climate change a risk to their business, nor had it been raised in the boardroom as a vital issue for consideration.

The news is particularly surprising, given that on an individual level, 73% view climate change as a cause for concern, despite the lack of meeting time devoted to the issue in boardrooms.

The survey also produced a range of varying thoughts on the kind of risks that would develop from the threat of climate change, with most businesses unsure of what risks could come into play for their business, and to what extent.

The global agricultural sector has already experienced the full brunt of climate change, with wheat harvests significantly down this year as a result of more severe weather patterns.

Additionally, many businesses were strongly affected by the recent spate of flooding and severe weather conditions over the summer months, halting production and damaging property and machinery, despite the fact that issue still seems to be viewed as far from critical.

The delegates, a cross section of insurance and risk professionals highlighted damage to property as the fundamental risk of global warming to their business over the next decade, closely followed by increased insurance costs as a result of more frequent and more significant weather damage, as well as rising fuel and energy costs.

Meanwhile, it was reflected that the vast majority of companies viewed climate change as a negative force, risky to the future of their business rather than posing any opportunities for future development or growth.