bacliat workshop business areas and future climate
TRANSCRIPT
BACLIAT workshop
Business areas and future climate
Climate change as a business risk
• Weather already frequently causes business disruption and in
some cases has an influence on productivity and sales.
• Climate change will lead to a wide range of threats and benefits,
both of which could present business opportunities.
• The business case for building resilience to the changing climate
can be made in terms of avoiding unexpected costs,
managing risks and making the most of opportunities.
• The consequences of climate change are very business and
sector specific – in order to make a business case for taking
action, we need to explore all the ways in which climate change
could affect us.
We are not alone
“The issue of expertise in relation to climate change
is now embedded within the organisation’s strategic
plan and we are in a better position to act as a well
informed and trusted source of information and
guidance to our members.” Vic Crisp, Chartered
Institute of Building Services Engineers
“There are niche markets in helping
others to identify and adapt to the risks
from climate and environmental change.
These can often be a development from
an established service rather than a
totally new departure.” Mike Samuels,
Owner of Medical Photographic Services
(SME)
Work to date
• [either delete this slide or complete as appropriate e.g.
with the outputs of any previous workshop, sector/
business specific information, such as your reasons for
carrying out this work or background research]
The purpose of today’s workshop
• Today’s workshop will draw upon your knowledge of your
organisation to brainstorm potential future impacts of climate
change.
• We will use UKCIP’s BACLIAT workshop (business areas climate
assessment tool).
• The idea is to uncover all the potential impacts without making
any judgement on how likely an event will be (identifying
significant impacts or prioritising can be part of a future
exercise).
• The only climate information we will be using are headline
messages.
Changes in annual / seasonal averages
• higher average temperatures, particularly
in summer and winter
• changes in seasonal rainfall patterns
• rising sea levels
Changes in extremes
• more very hot days and heatwaves
• more intense downpours of rain
• higher intensity storms
Website: http://ukclimateprojections.defra.gov.uk
Expected changes in the UK
• markets
• logistics
• process
• finance
• people
• premises
Climate change provides both threats and benefits
A generic framework for considering
climate impacts on business areas:
BACLIAT – Business Areas Climate Assessment Tool
Markets
Changing demand for goods and services:
• tourism: Mediterranean is too hot, so visit UK
instead
• food & drink: summer preferences, al fresco
pavement cafes 24/7
• leisure: demand for parks, gardens, heritage
• building design: passive cooling, sustainable
construction
• technology: monitoring, flood protection,
cooling equipment, health products etc.
• global impacts on markets or supply chains
Logistics• Disruption of supply chains arising from:
– transport disruption
– impacts on suppliers
• Just in time systems increase
vulnerability
• Disruption to power or water supply
• For smaller companies, supply chains
and power supply represent a large
proportion of their exposure to the
climate risk.
Summer 2005: BMW lost hours of production equating to 50 cars as a result of delays to deliveries following riverine flooding
Process
Impacts on production processes and service delivery:
• some business processes, equipment, assets and
activities are temperature sensitive:
- food preparation and storage
- some industrial processes, such as waterless printing
- agriculture
- IT server room
• extreme events can cause damage or disruption
• climate change could reduce / increase production efficiencies
• extreme events will set new performance standards
People
Implications for employees and customers:
• poor or better working environment?
- external: construction, agriculture
- internal: offices in summer
- more complaints generally
• reputation as employer
- attract and retain high quality staff
Premises• Impacts of wind, rain, storm, fire and
subsidence on building fabric and
structure or grounds
• Internal environment: less winter
heating/ more summer cooling
• Design decisions based on historical
climate data likely to be inadequate
• Retrofitting existing buildings represents
a major challenge
• Sustainable construction needs to link
climate change adaptation and
mitigation agendas
Finance
• Insurance issues: increased premiums;
variable premiums; vulnerable locations;
uncertainty
• Investment issues: tests for future proofing
of investment, global impacts on
international investment
• Costs: impact on raw material prices;
retrofitting existing buildings and
equipment could be expensive
Changes in annual / seasonal averages
• higher average temperatures, particularly in summer and
winter
• changes in seasonal rainfall patterns
• rising sea levels
Changes in extremes
• more very hot days and heatwaves
• more intense downpours of rain
• higher intensity storms
Expected changes in the UK
Following this workshop we will:
• Re-write each impact so that it is clear what the climate driver
is, where the impact will be felt and what the business
consequences are.
• Discard the BACLIAT headings in favour of a structure that fits
with your organisation, if you have not already done so. This
allows risks to be assigned to the appropriate staff and be
involved in further discussions.
• The workshop may be used as part of a more rigorous approach
to developing an adaptation plan or strategy, for example by
using the UKCIP Adaptation Wizard (www.ukcip.org.uk/wizard/).
Next steps
Thank you for taking part
www.ukcip.org.uk