Marsh is concerned that businesses are not adapting to climate change risks quickly enough, and wants to see more firms adopt a proactive approach to assessing and managing the risks associated with a more volatile climate.

According to the broker, the impact of recent extreme weather events and natural catastrophes highlight how business continuity plans need to be more rigorously assessed and managed, especially given the scope of risks within complex supply chains.

In a white paper entitled “Sustainability – the changing climate of risk”, Marsh also points out that regulators, planners and insurers are demanding greater assurances that projects will not have a harmful effect on the environment.

The group’s environment practice leader for Europe, the Middle East and Africa, Cliff Warman, comments: Across Europe, the infrastructure on which organisations rely to transport people, goods and raw materials and to power their factories, offices and homes and to supply water will come under increasing pressure from more frequent and more severe bouts of extreme weather.”

Dr Warman adds: “Long-term investment projects may become increasingly difficult to insure … companies should therefore take action to understand the risks their businesses face in the light of the predicted changes in the climate, before the full effects are felt – because by then the risks to the business may be too large to manage.”

 

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