Working with Deloitte

Climate change and business

The devastating floods in the UK during 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 partnership with Deloitte

In September 2007 the Walker Institute began a partnership with Deloitte to help 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 advice about local and regional 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 our experts lead the world.

In particular, the project is considering the changing risks from extreme weather and climate.

Read the press release >>

Dr Lis Gibson, who heads the climate change impact section at Deloitte, says:

"We believe that in five years time it will be the norm for Chief Risk Officers to have contingency plans based around the impact of climate on their business as the interdependencies of climate risk shocks and financial markets become better understood.

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.