We are working with Deloitte to investigate how the changing risks of extreme events could affect business.
Climate change and business
UK floods over the last decade (for example in the summer of 2007) show just how vulnerable property and infra-structure are to extremes in weather.
If such extremes become more frequent - as predictions of climate change suggest - the impact on business could be immense, particularly in areas like insurance, mortgage lending, commodities and retail.
For example, high risk areas could become less attractive to householders, businesses and
developers, due to an increased awareness of risks and higher insurance premiums. This could affect local
and possibly regional property values, with implications for mortgage lenders amongst others. This is just
one example of the kind of business impacts we could see over the next 20 years.
Our relationship with Deloitte
In September 2011 Deloitte commenced funding the work of a fellow at the Walker Institute to work on material which can be used by Deloitte as they advise their clients on the risks from climate change.
For businesses to be able to adapt to a changing climate they need much more detailed information about local and regional forecast changes in climate and extremes, not just for 2100, but for 2010 or 2015. Developing more detailed local and regional predictions of climate and hazardous weather is an area where Walker Institute experts lead the world.
In particular, the work is considering the changing risks from extreme weather and climate.
Professor Nigel Arnell, Director of the Walker Institute, says:
"This is a very exciting partnership giving us the opportunity to use our expertise in climate extremes and hazardous weather, as well as our climate modeling capability, to really benefit business. There is no doubt that in the next few years the enhancement in our models will lead to improved climate change projections, something of significant value to business. |
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