A new Barclays report finds UK businesses see adapting to a changing climate as critical to growth, but fewer than one in ten are fully resilient and well adapted to climate risks.

The survey of 700 UK business leaders and farmers found that 85 per cent think investing to protect themselves from extreme weather patterns is critical to growth, while 83 per cent believe underinvestment is constraining growth. However, fewer than one in ten businesses believe they are fully resilient and well adapted to a changing climate.

Only a quarter of those surveyed are currently investing to protect their business from climate change. Competing priorities, uncertain returns and data gaps are holding back investment. This is despite businesses reporting that a more proactive approach results in stronger assets, greater operational resilience, better decisions and improved access to insurance.

Barclays’ Business of Adaptation report also shows that more extreme weather is already impacting where UK businesses invest, with one in ten having closed or downsized sites due to climate risk.

Concern is highest in sectors most exposed to weather impacts, with 95 per cent of agricultural businesses, 90 per cent of energy and utilities firms and 87 per cent of property and housing organisations describing adapting to climate change as an immediate priority.

Over the past five years, 86 per cent of businesses have faced challenges with the cost, availability or level of insurance cover due to extreme weather. However, almost half of those that have invested in resilience report better access to insurance or lower costs with farmers seeing the greatest benefits: over 60 per cent say that investments to prepare for more extreme weather have delivered greater value than expected.

Despite the growing concern, investment in climate resilience remains low. This report finds that only three in ten businesses primarily use data, modelling and scenario analysis to assess physical climate risk.

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