How can the UK move adaptation up the climate agenda?

Climate adaptation has historically been overshadowed by mitigation, leaving nations vulnerable to climate impacts like extreme weather and rising sea levels.

In the UK, adaptation planning remains underdeveloped exposing the country and as a result British companies to greater physical climate risks, ultimately creating uncertainty for investors, local authorities and other stakeholders.

Given the critical nature of this overlooked topic, we convened a roundtable, in partnership with the Institute for Government, with government departments, think tanks, academics, and investors to discuss how to push adaptation up the agenda.

What is Royal London Asset Management doing on climate adaptation?

At Royal London Asset Management, we believe climate adaptation and mitigation should be pursued together. We recognise that adapting to climate change will require significant investment – a challenge in a fiscally constrained environment – but failing to adapt is likely to cost far more.

We advocate for companies and policymakers to adopt a ‘just adaptation’ approach which seeks to reduce the risk of any negative social impacts of adapting to climate change while aiming to maximise the benefits for society.

Findings and key messages

Key themes coming out of the roundtable included the need for significant investment, clear targets and a compelling vision of a well-adapted UK.

• Adaptation and government decision-making
  Participants highlighted the importance of integrating adaptation into government decision-making, conducting climate tests on policies, and engaging local authorities and communities early in the planning process. Learning from best practices in other countries, such as Canada and Germany, can also help.
• Positive economic benefits
  Adaptation interventions offer direct economic benefits and fit into a broader theme of national resilience. In the current context of global political instability, and the national focus on cost-cutting and growth, adaptation represents an opportunity for the UK government to drive growth cost-effectively while locking-in resilience.
• Garnering public support
  To gain public support and the private sector ‘buy-in’, politicians must communicate the risks and benefits of adaptation early and clearly. Engaging stakeholders in a timely manner and adopting a just adaptation approach can ensure co-benefits for society, including increased biodiversity, health benefits, and job creation.

Next steps for Royal London Asset Management

Investors play a crucial role in driving adaptation by influencing corporate climate action. At Royal London Asset Management, we are already engaging investee companies to implement just adaptation strategies, allocate resources, and scale solutions. In this way, businesses can support and benefit from national adaptation objectives.

We want to increase transparency on the topic of just adaptation, and with that in mind, will raise its profile through more work with companies, think tanks, industry bodies, and policymakers. We will also publish an investor expectations report on best practices later in the year, including progress on engagements we have undertaken.

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