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Let’s face it: extreme weather isn’t a problem for tomorrow, it’s here today, reshaping how businesses operate. Floods, heatwaves, and storms are no longer rare events. They’re happening more often and costing businesses billions globally.
Whether you’re facing higher insurance premiums, supply chain disruptions, or operational delays, one thing is clear: starting early and planning ahead is no longer optional, it’s critical for building efficiency and resilience across your organisation and supply chain.
What’s the cost of waiting?
Procrastination can be expensive. Take the UK, for instance. The devastating floods of recent years have cost local businesses millions, with some never recovering. Beyond the immediate damage, the ripple effects from delayed deliveries to skyrocketing insurance premiums can cripple a company’s ability to stay competitive.
In the UK alone, the cost of climate-related events rose to £2.2 billion in 2023, with disruptions to operations and workforce safety becoming more frequent.
What’s worse? Businesses that fail to act now miss out on the financial and operational benefits of getting ahead of the curve.
Technology: Your secret weapon against climate risks
Planning for climate risks doesn’t have to be overwhelming. With the right tools, you can start small and make meaningful progress. Here’s how technology is already helping businesses manage today’s risks and uncover tomorrow’s opportunities:
AI to predict and adapt to extreme weather
Imagine being able to predict a flood before it happens or optimise your energy use when demand spikes. AI makes this possible:
FloodFlash (UK): This London-based company uses sensors to provide rapid insurance payouts during floods, cutting recovery time from months to days.
DeepMind: Optimises energy usage in data centres, reducing costs by up to 30%—money that can be reinvested into climate resilience.
AI also supports precision planning, helping businesses adjust to changing weather patterns and maintain continuity.
Blockchain for resilient supply chains
Supply chain disruptions are a major side effect of extreme weather. Blockchain technology ensures you know where your risks are:
Plastic Bank: Uses blockchain to reward coastal communities for recycling plastic waste, reducing pollution while supporting vulnerable areas.
Provenance (UK): Tracks product origins to ensure ethical and sustainable sourcing, which becomes even more critical during disruptions.
A transparent supply chain means fewer surprises when the unexpected happens.
Data analytics to prepare for the unexpected
What if you could map out how climate risks could affect your business before they hit?
Data analytics lets you do just that:
Satelligence: Uses satellite data to monitor risks like deforestation and biodiversity loss, helping you protect your supply chain.
Microsoft Sustainability Calculator: Provides actionable insights to reduce emissions and adapt to potential disruptions.
Why starting now matters
The longer you wait, the fewer options you’ll have. Businesses that start early don’t just avoid costly damage. They gain an edge by building efficiency into their operations. Think of it like maintaining your car: regular tune-ups are far cheaper than a full engine replacement.
Your next steps: Start small, but start now
You don’t need to transform your entire business overnight. Start with small, manageable steps:
Identify your risks: Use tools like data analytics to map out vulnerabilities.
Plan for disruptions: Work with your team to create response plans for extreme weather events.
Leverage technology: Integrate solutions like AI or blockchain to enhance resilience.
Every step you take now builds a foundation for long-term success.
Conclusion: Don’t wait for the storm to hit
Extreme weather isn’t just a headline it’s a business reality. For example, businesses along Norfolk’s East Coast are seeing annual storm surge costs rise by an average of £100,000 per site.
Planning ahead isn’t about ticking a box; it’s about staying competitive in a world that’s rapidly changing. By starting early and embracing technology, you’re not just preparing for risks, you’re seizing opportunities to work smarter, cut costs, and stay ahead.
Are you Impacted?
At Simplify Climate, we are a consultancy on a mission to simplify the integration of climate change, nature, social impact, and sustainability factors. We aim to transform these challenges from a regulatory burden into a competitive advantage while serving as your dedicated management expert every step of the way.
Email us at help@simplifyclimate.co.uk to arrange a discussion with our experts.
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