Businesses must look at the true financial costs of climate change to plan better for extreme weather events. That is the conclusion of a new report by University of Bath experts for Wiltshire-based affordable housing provider Aster Group.
The report highlights three key risk factors for the Aster Group: flooding, subsidence, and the risk of over-heating for elderly residents. Projecting forward under different scenarios, the report’s findings suggest that costs from extreme weather events could increase by a factor of 10 with climate change over the next 35 years. Targeted investments now would, therefore, make significant future financial savings. The report will be used to inform Aster’s business planning.
Lead economist on the project Dr Alistair Hunt, said: “Our study highlighted key climate change risk factors over the next 30-40 years for one specific organisation, but our findings and the underlying methodology used are applicable across the sector and for the wider business community.
“From current projections we know that climate change will pose a serious challenge by 2040 for many organisations. Putting a true economic cost on these risks can act as a catalyst to taking action today in order to help organisations better prepare for the future.”
The work is part of an Innovate UK project led by the Global Climate Adaptation Partnership (GCAP) with Daniel Black & Associates (db+a), and researchers at the University of Bath and the University of Manchester.