Climate Change

Research released this week suggests that cities could be 8 degrees warmer by 2100.  Whilst this may sound an appealing prospect for those in Inverness, the report cites a median loss of 1.7% of city GDP by 2050, with the worst affected losing more than 10% by 2100. The impact on cities is worse than rural areas due to the ‘urban heat island’ impact of concrete and asphalt storing up heat. Other studies have shown that the ‘adaption economy’ (the cost of preparing cities for this change) is typically less than 0.5% of city GDP, with poorer (often more vulnerable) cities spending less on account of other more immediate priorities. A key business risk is supply chain disruption (due to extreme weather), whilst property risks include flooding, subsidence and over-heating of commercial buildings and infrastructure.