A summary of the London Assembly Economy Committee report on the economic impact of climate change. 'Weathering the Storm' explores the risks and opportunities climate change brings to London's economy.

1. Weathering the Storm
The Impact of Climate Change on London’s Economy
An Executive Summary
Economy Committee

2. Investment Supply Chain
Insurance
Lack of
Adaptation
Over £400billion UK assets
are in countries vulnerable
to climate change
Fossil fuel investments face
a carbon bubble if global
emissions are capped
60% of SMEs have no
plan for severe weather
54% of FTSE 100 have
no climate adaptation
business strategy
Critical overseas supply
chains are vulnerable to the
effects of climate change…
…leading to shortages
and price rises e.g. of
tech components / food
supply
A 4% rise in global av.
temperature → 14% rise
in annual insured losses
Sector will struggle to
provide commercial cover
in the face of Climate
Change
Risks of Climate
Change for London’s
Economy

3. Global city, global risks
London’s status as a global city makes its economy increasingly
vulnerable to climate change risks ‘imported’ from overseas…
Photo credit: Tom Simpson
overseas
supply chains
for critical
products e.g.
food are at risk
from flooding
and drought
The UK has
>£400billion assets
in countries
vulnerable to climate
change e.g. India

4. How prepared are businesses?
46 per cent of FTSE
100 firms have no
adaptation business
strategy in place for
climate change
Carbon Disclosure Project, Insights
into Climate Change Adaptation by
UK Companies, 2012
60 per cent of small & medium sized
enterprises have no plan in place to deal
with extreme weather conditions
Federation of Small Businesses, Severe Weather Survey, 2014
Photo credit: Tom Simpson

5. London and its economy, are not fully
resilient in the face of climate change.
Our report makes a number of
recommendations, including…
Our investigation concluded that…
Photo credit: Tom Simpson

6. 1. Map major supply chain vulnerabilities
The London Climate Change
Partnership should map the major
supply chain vulnerabilities of
London’s economy.

7. 2. Launch a Mayoral award for adaptation
A Mayoral award for climate change adaptation should be launched
to encourage adaptation planning and sharing of best practice.
Photo credit: Tom Simpson

8. 3. Invest responsibly
The Mayor should commit to the
principle of a transition away from
investments in coal. The London
Pension Fund Authority should
explore options for managed
divestment of their funds.

9. 4. Diversify London’s economy
The Mayor should integrate climate change
adaptation into his Economic Development Strategy…
…to drive forward a resilient, low carbon economy,
develop London’s adaptation skills bases and
encourage further innovation in the green economy.
Photo credit: Tom Simpson

10. Further information
Download ‘Weathering the Storm’ and read more about our investigation at
https://www.london.gov.uk/about-us/london-assembly/london-assembly-
publications/weathering-storm-impact-climate-change-londons.
Scrutiny contact
Charlotte.Maddrell@london.gov.uk
0207 983 5618
Media enquiries
Lisa.Lam@london.gov.uk
0207 983 4067
Please share this report with your
networks and if you would like to
show your support please tweet with
the hashtag #weatheringthestorm