A flooded section of road in London as torrential rain and thunderstorms hit England on August 17, 2022. Getty Images
A flooded section of road in London as torrential rain and thunderstorms hit England on August 17, 2022. Getty Images
A flooded section of road in London as torrential rain and thunderstorms hit England on August 17, 2022. Getty Images
A flooded section of road in London as torrential rain and thunderstorms hit England on August 17, 2022. Getty Images

Improving London's resilience to climate change 'non negotiable', report warns


Soraya Ebrahimi
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Preparing London for climate change is "non-negotiable", a landmark review of the capital's resilience to its effects has warned.

The UK government and businesses have not adequately planned for the disruption to London caused when severe weather impacts “cascade” through critical systems such as health care, transport, energy and water, the report found.

The review, carried out by former Environment Agency chairwoman Emma Howard Boyd, said the new Labour government should embrace the chance for “a reset” on UK climate resilience against risks such as heatwaves, floods, droughts, wildfires, storms, and sea level rises and subsidence.

London Mayor Sadiq Khan commissioned the review after parts of the city received more than twice the average July rainfall in 2021, and Londoners died in 2022’s 40ºC heatwave.

The review, published on Wednesday, found climate effects in London happen together, with the heatwave occurring at the same time as drought and wildfires, while periods of extreme heat are often followed by flash flooding.

During the 2022 heatwave, there was a 50 per cent increase in water use while reservoirs were at their lowest for 30 years and wildfires pushed the London Fire Brigade to its limits, it said.

London heatwaves - in pictures

  • The sun rises above the London skyline. Reuters
    The sun rises above the London skyline. Reuters
  • London has experienced 116 days over 30°C in the past three decades – more than half of which, 59, occurred in the last 10 years. AP
    London has experienced 116 days over 30°C in the past three decades – more than half of which, 59, occurred in the last 10 years. AP
  • Extreme temperatures have become more frequent too, with seven days above 35°C in the past three decades, five of which occurred in the last five years. AP
    Extreme temperatures have become more frequent too, with seven days above 35°C in the past three decades, five of which occurred in the last five years. AP
  • Since 2017, every year except 2021 has seen the temperature rise above 30C in London for three or more consecutive days each summer. AP
    Since 2017, every year except 2021 has seen the temperature rise above 30C in London for three or more consecutive days each summer. AP
  • It will take a range of strategies to adapt Britain’s capital to the growing heat. Bloomberg
    It will take a range of strategies to adapt Britain’s capital to the growing heat. Bloomberg
  • The Tube can be exceptionally uncomfortable during heatwaves in London. PA
    The Tube can be exceptionally uncomfortable during heatwaves in London. PA
  • Experts have said technological interventions, such as better building insulation are required. Bloomberg
    Experts have said technological interventions, such as better building insulation are required. Bloomberg
  • A person holds a thermometer at Oxford Road station of the London underground in 2022. PA
    A person holds a thermometer at Oxford Road station of the London underground in 2022. PA
  • Many Londoners take to city fountains to cool off in the summer. Reuters
    Many Londoners take to city fountains to cool off in the summer. Reuters
  • A member of the Queen's Guard receives water to drink during a heatwave in July 2022. Reuters
    A member of the Queen's Guard receives water to drink during a heatwave in July 2022. Reuters
  • A study looked at how climate change is affecting the world’s most populous capital cities – using airport data for consistency across cities, including City Airport in London. Reuters
    A study looked at how climate change is affecting the world’s most populous capital cities – using airport data for consistency across cities, including City Airport in London. Reuters
  • Summers have been getting warmed in London. City office workers stretch out over the grass during a hot summer lunchtime in Trinity Square in the City of London, July 1993, in London. Getty Images
    Summers have been getting warmed in London. City office workers stretch out over the grass during a hot summer lunchtime in Trinity Square in the City of London, July 1993, in London. Getty Images
  • Researchers called for urgent action to prepare the capital for more days of extreme heat. Getty Images
    Researchers called for urgent action to prepare the capital for more days of extreme heat. Getty Images
  • Temperatures exceeding 30°C are increasingly being recorded in London, analysis shows. Getty Images
    Temperatures exceeding 30°C are increasingly being recorded in London, analysis shows. Getty Images
  • There have been calls for London to adapt to its new reality. Getty Images
    There have been calls for London to adapt to its new reality. Getty Images
  • Smoke from fires in a residential area in Wennington, England. Getty Images
    Smoke from fires in a residential area in Wennington, England. Getty Images
  • London has also suffered from flooding and other extreme weather. Getty Images
    London has also suffered from flooding and other extreme weather. Getty Images
  • Experts have called for more tree cover and extending green space to combat the urban heat island effect, where cities are hotter because of their built-up nature. EPA
    Experts have called for more tree cover and extending green space to combat the urban heat island effect, where cities are hotter because of their built-up nature. EPA
  • People take shelter in the entrance to an underground station, as torrential rain and thunderstorms hit London in 2022 Getty Images
    People take shelter in the entrance to an underground station, as torrential rain and thunderstorms hit London in 2022 Getty Images

London’s trees, and other green and blue spaces, were found to be under threat from heatwaves, wildfires and windstorms, weakening the capital’s resilience because trees reduce street temperature and decrease flood risk.

The paper said the UK’s ageing population, and particularly people over 65 in care homes, are at the highest risk of heat-related death.

It found that about 43 per cent of London properties are likely to be affected by subsidence by 2030, while initial analysis suggests climate change could affect the city’s Gross Domestic Product by 2 to 3 per cent every year by the 2050s.

“We are entering a new era. In 2024, even as El Nino fades, we are set for another record-breaking year of deadly heatwaves, wildfires and storms," Ms Howard Boyd said.

“In the last year, floods in the UK have upended lives and battered local economies.

“The health and security of Londoners and the health of the national economy are inseparable.

“This is a reset moment for efforts to increase the UK’s stability in the face of global climate disruption.

“As the new government takes action to end the cost-of-living crisis, protecting the lives and livelihoods of working people from extreme weather is non-negotiable.”

Floods in the Holloway area of London - in pictures

  • Members of the fire brigade help ferry local residents in Holloway, north London, after a water main burst causing flooding up to 1.2 metres deep. PA
    Members of the fire brigade help ferry local residents in Holloway, north London, after a water main burst causing flooding up to 1.2 metres deep. PA
  • A motorcyclist negotiates substantial flooding on roads close to the Emirates Stadium, the home of Arsenal Football Club. Getty Images
    A motorcyclist negotiates substantial flooding on roads close to the Emirates Stadium, the home of Arsenal Football Club. Getty Images
  • Emergency services were called to the scene in Holloway in the north London borough of Islington just after 7am. Getty Images
    Emergency services were called to the scene in Holloway in the north London borough of Islington just after 7am. Getty Images
  • Ten fire engines and about 70 firefighters help at the scene. PA
    Ten fire engines and about 70 firefighters help at the scene. PA
  • Multiple road closures are in place in the area. PA
    Multiple road closures are in place in the area. PA
  • Thames Water officials work in Holloway. PA
    Thames Water officials work in Holloway. PA
  • A car makes its way through the flood waters. Getty Images
    A car makes its way through the flood waters. Getty Images

In the report, Ms Howard Boyd detailed opportunities for investment and growth, but warned that time is running out.

Recommendations include an official heat plan for the city to help it better deal with severe floods and heatwaves, and producing a national wildfire strategy and action plan by 2025.

The government should also form a Strategic Surface Water Authority for London to promote, enforce and allocate funds in line with a strategic approach to flooding, the report recommended.

The review found that London and the whole of the south-east of England needs a new reservoir.

Elsewhere, the report outlined deadlines for upgrading flood defences upstream of the Thames Barrier by 2050, while downstream it is 2040 and a new barrier is needed by 2070.

It also said the government’s plans to build more homes and better infrastructure must include updating resilience and technical standards to cope with the new weather extremes.

“Climate change is one of the biggest dangers our capital faces, and its effects cannot be ignored," Mr Khan said.

“It is essential that we invest in key sectors and prepare our public services so that London can continue to grow and thrive in the face of climate change, and the review provides clarity and direction on how to do this.

“This is also an issue of social justice as the review makes clear it is Londoners on lower incomes that are most exposed to the impacts of dangerous climate change.”

Mr Khan said he accepts the recommendations made to the city, which will work with the government, local councils, businesses and communities to advance them over the coming months.

The review gathered evidence from people, communities and organisations including the National Health Service, Transport for London, London Fire Brigade, borough councils, the UK government, the financial services sector, sports and representatives of vulnerable groups.

“We welcome this review and understand the urgent need to prepare for and adapt to the changes posed by the climate emergency," a government representative said.

“We have a robust plan to improve resilience and preparation for the impacts of climate change across central government, local authorities, local communities and emergency services.

“The new government is committed to protecting communities in London and across the country from the dangers of flooding.

"That’s why this government will launch a Flood Resilience Taskforce to turbocharge the delivery of flood defences, drainage systems and natural flood management schemes.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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