“Climate change security hazards set for double-digit increase” warns G4S

Almost two-fifths (38%) of companies surveyed expect climate change to impact their company in the next 12 months. This represents an increase of 11% on the previous year.

Climate change is the third most likely security-impacting hazard to affect companies in the next year after economic unrest (47%) and pandemics (40%). 

Chief Security Officers (CSOs) also anticipate that floods, wildfires, earthquakes, landslides and tsunamis will all increase.

Noah Price, director of the G4S International Academy, noted: “Climate change and natural disasters pose a significant threat to a company’s physical security operations. Most companies tend to be reactive, addressing security threats only after they’ve struck. It’s business-critical that CSOs anticipate potential threats and prepare for them. No action or just reaction is not an option.”

Price continued: “Being reactive often results in significantly higher financial and reputational losses compared to the costs of implementing robust and pre-emptive security measures. Planning will ensure businesses are more resilient, in turn safeguarding their people and assets.”

What do businesses need to do?

Contingency planning, investing in technology and diversifying supply chains from climate change disruptions are three examples of the actions businesses can take.

One of the most pragmatic security plans is to realise climate-specific risk assessments of places of work, operational locations and where employees reside. These assessments should be regularly reviewed and updated. “In light of the wildfires we’ve witnessed around the world,” stated Price, “it’s imperative business leaders ask themselves: have we evaluated the risk of such events recurring? Have we proactively installed measures such as perimeter defences to mitigate future threats? Beyond physical infrastructure, it’s crucial to consider the human element. How do such events impact employees, their families and their ability to work?”

Businesses should invest in infrastructure that can withstand extreme weather events. Buildings that are reinforced, boast flood protection systems and harbour fire-resistant materials will lessen the impact.

Companies are now facing up to £95 billion in costs from environmental risks in their supply chains within the next five years. If supply chains are strategically diversified, threats to one region are less likely to affect production, manufacturing or commerce, thereby reducing the overall impact on business productivity.

Supply chain fragility

Mike Maltezakis, supply chain specialist at the G4S International Academy, said: “Recent droughts in the Panama Canal, flash flooding and extreme wildfires have highlighted the fragility of supply chains. The need for them to be resilient and as diverse as possible is now increasingly necessary.” 

Maltezakis commented: “If you’re an e-commerce business, a supply chain disruption like the Panama Canal drought has the potential to be not only costly, but also leave you and your products vulnerable to theft. You could have millions of pounds worth of product sat in cargo that an organised crime group would seek to compromise. The biggest security threat is that such groups use violence against staff and crew members to take what they want.”

He added: “Having varied supply chain options in place means companies are less at risk of being over-reliant on certain suppliers.”Predictive and aerial technology will be key for assessing the risks and any damage, as well as enabling key strategic decision-making.

Over the next five years, 42% and 39% of World Security Report respondents are planning to use Artificial Intelligence (AI) and machine learning respectively – as well as IoT devices – in their physical security operations. Almost a quarter (24%) will employ drones.AI and machine learning can be used for predictive analytics when looking at climate-related risks. For instance, AI can analyse vast amounts of data from past weather patterns, satellite imagery and climate models to predict natural disasters with greater accuracy, enabling timely preventive measures.

Monitoring environmental conditions

IoT, in real-time, can monitor environmental conditions. Strategically placed devices can monitor factors like water levels, soil moisture or air quality and send instant alerts flagging any abnormal readings, which can indicate impending floods, droughts or other climate threats.

For their part, drones and satellites can assess the impact of climate events on infrastructure. Drones can provide aerial views of affected areas, in turn helping businesses to assess any damage quickly and plan an effective response.In conclusion, Price noted: “Businesses have a vital role to play in reducing climate change, but also in keeping their operations running, their people and assets safe and protecting themselves from a wide range of climate threats.”