Stephanie Pfeifer, IIGCC CEO, statement on the UK Climate Change Committee report 'A Well-Adapted UK':
Today’s report from the Climate Change Committee is a timely and necessary reminder that the UK must move faster to build resilience to the physical impacts of climate change. For investors, managing climate physical risks is not optional - it is fundamental to protecting long-term value across portfolios and the wider economy, and it is the other side of the coin to managing the risks and opportunities of the clean energy transition.
The report rightly highlights insurability and infrastructure resilience as priorities. Insurability is a critical enabler of investment, and there is a clear link between resilience, credit quality and the long-term viability of critical infrastructure assets. Investor analysis, including IIGCC’s PCRAM case studies, shows that strengthening this link will be key to mobilising capital into adaptation solutions.
We strongly support the CCC’s call for all large companies to integrate high-quality adaptation plans into their business planning by 2035. This will help embed climate resilience into financial decision-making. To be effective, this must be backed by incentives that encourage disclosure and clear expectations for consistent, high-quality reporting.
Investors are already allocating capital to climate-resilient infrastructure, because robust, well-insured infrastructure underpins long-term returns.
We look forward to working with policymakers to help create the conditions needed to mobilise investment and build a more resilient UK economy.
Disclaimer: All communications and initiatives undertaken by IIGCC are designed solely to support investors in understanding risks and opportunities associated with climate change and take action to address them. Our work is conducted in accordance with all the relevant laws, including competition laws and acting in concert rules. IIGCC’s services to members do not include financial, legal or investment advice. The views expressed here do not necessarily represent those of all IIGCC members.