UK firms may face extra climate change costs

News Article - 24 May 2012
Category: Environment

In its first national assessment of the UK's ability to deal with global warming, a Government committee has warned businesses that more efficient spending is essential to avoid high costs in the future.

Despite one in three UK companies being 'significantly affected' by extreme weather events in the last three years, the Climate Change Committee's adaptation sub-committee found that only 6 per cent of firms, local authorities and public bodies have been proactive in tackling global warming issues.

According to Lord John Krebs, chairman of the sub-committee, an inclination to talk and plan rather than act was a key factor in the UK's current unpreparedness. In many cases, Lord Krebs said, adaptation guidelines are "name-checked in policies, but it's not clear what that means on the ground."

Adaptation should be seen as complementary to cutting carbon emissions rather than an alternative, and must focus on changing the ways companies act in order to prepare for a low-carbon future. Firms should keep climate change in mind particularly when leasing new properties, ensuring buildings are not built on areas where future difficulties may arise, such as flood plains.

The subcommittee's report also called for rapid Government action to more tightly regulate and fund green projects, incentivising companies that may be worried about hitting profit margins with increased costs.                                                                                     

In conclusion, Lord Krebs urged the UK to act immediately on climate change before it gets too late. Spending smart and investing to save must become standard practices amongst UK businesses or they risk financial and reputational damage as the realities of climate change hit home.

Businesses may find it hard at first to align with the low-carbon economy but it is essential to do sooner rather than later. Reporting carbon emissions is an essential first step to help companies build up a picture of their own carbon-intensity.

Access' Accounting for Carbon Emissions module can help by allowing firms to break down carbon footprint by department, project and individual. With this data in mind, companies are much more able to focus resources and spend smartly to efficiently tackle climate change.

For more information, please call Access on 0845 345 3300

Article keywords: Climate Change Committee, global warming, Lord John Krebs, carbon emissions, carbon footprint, low-carbon economy, Accounting for Carbon Emissions

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