BusinessLDN recently convened members for a discussion with the Florence Bates, Head of Climate Change Risk Assessment and Adaptation Progress Reporting at the Climate Change Committee (CCC), on the UK’s growing climate risks and what these mean for London’s businesses, infrastructure and communities – focusing on their ‘A Well-Adapted UK’ report.
The message was clear: climate change is no longer a distant threat. Its impacts are already being felt across the capital. But alongside the stark warnings, there is a compelling opportunity to turn climate risk into action and build long-term resilience.
London’s growing exposure
The CCC highlighted the scale of the challenge facing the UK. Following its hottest summer on record, with five consecutive heatwaves, 92% of homes could be at risk of overheating by 2050.
For London, these risks are particularly acute. Increased winter rainfall is intensifying surface water flood risks, with last winter’s heavy rainfall causing 30 Underground stations to close at one point. Meanwhile, longer droughts and rising wildfire risks threaten the capital’s water supplies, green spaces and surrounding communities. Wildfires are expected to double by 2050, with London and the South East particularly exposed.
The economic implications are equally significant. Climate-related impacts currently cost an estimated 2% of UK GDP, potentially rising to 5% by 2050 and 10% by 2100. For a city built next to a river and whose economy depends on reliable infrastructure and people being able to get across the city the cost of inaction could be considerable.
Resilience as a business opportunity
Despite these projections, the CCC’s report sets out practical solutions that could mitigate the impact of climate change. Its central message is that these risks are not inevitable, and many of the measures needed to address them are already well understood.
Investment in water management, flood defences, resilient buildings and infrastructure now could save us from having to spend more in future. The CCC estimates that around £11bn in annual investment is needed nationally, a large sum but relatively small compared to the cost inaction.
For London, resilience is about more than protecting individual assets. Disruption to one transport link, utility or building can have knock-on effects across entire neighbourhoods and supply chains. Investing in adaptation is therefore an opportunity to make London’s economy more resilient and help it to thrive.
Collaboration is key
Delivering resilience in London is challenging. Responsibility for infrastructure, utilities, buildings and public spaces is spread across numerous organisations. No single actor can address these risks alone.
Attendees emphasised the need for stronger coordination between government, businesses and infrastructure providers. Forums such as the BusinessLDN Sustainability Forum can help bring stakeholders together, while government has a critical role in setting clear objectives, measurable targets and funded commitments.
There is also an opportunity for businesses to strengthen their competitiveness by embedding resilience into investment and strategic decisions, demonstrating both commercial and wider social value.
Turning ambition into action
In spite of the stark statistics, there is reason for optimism. London has the expertise, innovation and collaborative networks to respond.
The challenge now is to move beyond piecemeal responses towards a coordinated, long-term approach. By bringing business and government together, London can do more than prepare for climate risks: it can protect its communities, strengthen its competitiveness and build a more resilient foundation for future growth.
At BusinessLDN, we look forward to continuing these conversations with our members and partners as we work towards a more resilient, sustainable and prosperous capital.