Concerns about energy transition are deflecting focus from climate change
Source: Middle East Insurance Review | Jun 2023
Current and short-term concerns about energy transition are deflecting focus away from climate change. However, the reality of the long-term threat that climate change poses is rising to the top of boardroom agendas according to a new survey by the specialist insurer Beazley.
It released the latest edition of its Risk & Resilience series Spotlight On: Environmental Risk in April 2023. It reveals that more than one in four (28%) predict that climate change will be their most pressing risk in 12 months’ time.
Just as environmental risks are climbing up the agenda, business confidence in companies’ resilience is dropping fast as all areas of environmental risk suffer a fall in resilience levels. The impact on energy resources caused by the Russia president Vladimir Putin’s invasion on Ukraine has significantly impacted business leaders’ thinking and perception of resilience over the last 12 months.
Across the globe, business leaders are becoming more aligned with just 9% predicting that energy transition will be the top risk in 12 months’ time. Instead, climate change leaps up as the biggest environmental risk business leaders believe they will face.
A lack of business preparedness for climate-related risks has, however, led to a quarter of global business feeling unprepared to face the impact of climate change. Small and medium businesses are feeling most exposed, with 28% of firms that generate under GBP100m ($125m) revenue noting they are unprepared, versus 21% of businesses with revenue over GBP100m.
Beazley chief underwriting officer Bob Quane said, “The current low levels of resilience that many business leaders feel in the face of climate change, coupled with the reality of the effects we have seen over the past 12 months, means a change of mindset is urgently needed.”
The survey included 2,000 senior business leaders across the US, the UK, Canada and Singapore. M