Four in five UK firms flying blind into climate crisis, warns ACCA

British businesses and organisations are underprepared for weather-related disasters, with a mere fifth having properly assessed climate risks across their operations, a damning new report reveals.

The Association of Chartered Certified Accountants’ (ACCA) latest study, “Weathering the storm: building resilience against climate disruptions,” paints a stark picture of organisational readiness in the face of mounting environmental threats.

The findings show that just 17% of organisations regularly practise their response to major disruptions, whilst a quarter have no resilience measures whatsoever in place. More worryingly, two-thirds are failing to invest adequately in addressing physical climate risks.

“Spain’s recent floods and intensifying hurricanes worldwide are harrowing reminders that climate change is not a distant threat; it’s reshaping lives and communities right now,” said Emmeline Skelton, Head of Sustainability at ACCA, who authored the report.

Drawing from ACCA’s Global Economic Conditions Survey of more than 600 finance professionals worldwide, the study revealed marked regional variations in climate challenges. African respondents cited power outages as their primary concern (54%), whilst North American organisations grappled with supply chain breakdowns (41%) and employee health issues (39%).

The rise of remote working has introduced fresh vulnerabilities, with organisations urged to consider climate risks affecting their distributed workforce. “Organisations with a digital-first approach can’t overlook climate risks affecting their remote workforce,” Skelton noted, advocating for measures such as power backups and health monitoring systems.

The report emphasises the pivotal role of finance professionals in building climate resilience. CFOs and their teams are identified as crucial players in developing risk-based planning and sustainable business strategies, with responsibility for emissions targets and transition plans towards net-zero goals.

“Organisations must make climate adaptation a priority— not only to safeguard their operations but to protect the people and places at risk. Rising temperatures, more intense rainfall, and swelling sea levels make the evidence unmistakable: we must act now to build resilience and mitigate further harm.” Emmeline Skelton – Head of Sustainability, ACCA

Only 37% of organisations plan to increase spending on climate resilience, despite mounting evidence of environmental threats. This shortfall in investment comes as climate-related disruptions grow increasingly frequent and severe.

ACCA will present these findings at the  COP29 climate summit in Azerbaijan. The report includes practical toolkits for finance teams, covering scenario testing, crisis management planning, and business continuity strategies, alongside key recommendations for businesses and governments.

The study serves as a wake-up call for organisations to prioritise climate adaptation and resilience-building measures, protecting both their operations and the communities they serve amidst increasingly volatile weather patterns.

Comments are closed.