International standards, such as the global baseline standards being developed by the International Financial Reporting Standards’ International Sustainability Standards Board, can support the global financial sector. They provide the basis for assessment and response that is appropriate to climate risks and reduce participants’ exposure to these risks before they can cause systemic impacts to the global financial system and the UK. Government is encouraging uptake of these new • advancing the goal of agreeing a global minimum baseline in sustainability standards through agreements in international fora such as the G7 and G20 • supporting the Financial Stability Board to coordinate regulators internationally, helping to set standards for central banks The UK already requires mandatory reporting of climate-risk through its implementation of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), which aims to improve and increase reporting of climate-related financial information globally. Through mandatory reporting requirements that apply across the economy, certain businesses and financial institutions are obliged to disclose their climate-related risks, impacts and

opportunities and their governance and strategies for managing these issues. The • build on TCFD rules with Sustainability Disclosure Requirements (SDR) as set out in the updated Green Finance Strategy • support the work of the International Sustainability Standards Board and set up a framework to assess the suitability of their standards for adoption in the • push for international adoption of the International Financial Reporting Standards Sustainability Disclosure Standards and support a shared understanding through knowledge sharing and capacity building • support the work of the Taskforce for Nature-related Financial Disclosures, which has been set up to create a risk management and disclosure framework due for publication in September 2023, for organisations to report and act on evolving nature-related risks and opportunities Given the impact that climate change could have on the financial system, it is important that monitoring mechanisms oversee the risks posed to the UK overall. UK financial firms also need to have the appropriate and latest information available to manage exposure to physical, liability, and transition risks of climate change. HM • using the Bank of England’s comprehensive stress-tests, including in the Climate Biennial Exploratory Scenario, which determines exposure of the largest UK banks and insurers under various climate scenarios, to improve government’s understanding of climate risks to the financial sector • conducting research with the Network for Greening the Financial System that is conducting advanced scenario work to fill in the data gaps and analysis needed to assess climate-related financial risks Recognising that the impacts of risks to the financial sector demand coordinated responses across borders and sectors, HMT • engage other jurisdictions to seek their public support for the work of the International Sustainability Standards Board • engage with insurers and regulators to monitor the availability and affordability of different lines of insurance to maintain our awareness of climate change

The COVID-19 pandemic highlighted how diseases and viruses can cascade across borders, with devastating health-related, social, and economic impacts. It led to millions of excess deaths in 2020 and 2021 and caused trillions of dollars in lost global economic output (source: WHO, 2022; IMF, 2020). The impacts of COVID-19 demonstrate the importance of monitoring and managing the impacts of overseas health-related risks, including the spread of new diseases due to climate change. Informed by this, the government is developing solutions to better mitigate against future pandemics and build resilient and robust systems. The UK Biological Security Strategy, published in June 2023, will enhance the UK’s ability to understand, prevent, detect and respond to the biological risks that we face, including those induced by climate change. It recognises the interdependencies between environmental, plant, animal and human health through a ‘one health’ and climate focused approach to biological security. Overseas climate change impacts can increase the presence of diseases within the UK, including through changes to vector and disease distribution and travel patterns, leading to a potential increase in exposure risk. The movement of humans and animals across borders can increase health risks, such as new diseases and vectors spreading through overseas travel and trade. Ecological changes combined with changes in human activity can lead to people having increased contact with species not previously encountered. Also, temperature and condition changes mean that the UK climate is also becoming increasingly suitable for vectors acting as a host to new diseases. By building resilience to overseas climate impacts, we are establishing the basis for the UK to bounce back from future pandemics. The government is monitoring the occurrence of vector-borne diseases (VBDs), including the number and size of outbreaks, to improve our understanding of the changing distribution and human cases to manage impacts. To do this, UKHSA and • enhance the surveillance and monitoring of overseas health risks from 2023 to 2028 through UKHSA’s epidemic intelligence reports • undertake horizon-scanning and conduct research to identify changes in the distribution of VBDs in the UK and worldwide from 2023 to 2028. This action

Building the capacity and capability of those working in the sector and those travelling overseas is vital to reduce the spread of new vector-borne diseases. To address this, UKHSA and DHSC • continue to raise awareness for travellers of the need to prevent new diseases to the UK from climate change overseas through the National Travel Health Network and Centre and country-specific travel advice on GOV.UK from 2023 • train healthcare professionals to recognise cases of suspected VBDs to increase detection of cases, limit spread and improve patient outcomes from The government will improve the surveillance of vector-borne diseases which can be exacerbated by climate change. We will achieve this by enabling collaboration with NHS specialist tropical disease centres in Liverpool and London through joint medical staff appointments, the imported fever service and the sharing of official Many of the international climate risks facing the UK are closely related, and other domestic risks and can have cascading effects across borders and sectors. Each risk covered in this chapter has the potential to cascade across borders.
Russia’s illegal invasion of Ukraine provides an example of this. It continues to have far-reaching effects on the supply of fertiliser, food and energy to the UK. If risks do cascade, impacts can create problems in other countries and sectors, potentially The UK’s vulnerability to cascading and systemic risks is likely to increase due to increasing climate risks, increased exposure due to our embedding into growing global networks, and changes in global politics. By building the UK’s resilience we will be less vulnerable to both climate risks originating overseas and to other Better understanding risk cascades will enable the government to target policy and respond more readily, delivering outcomes that could reduce overseas climate risk risks and target investment more effectively on certain sectors or assets. The government is strengthening decision-making systems, structures, and capabilities to improve the UK’s resilience to all climate risks, including those yet to • supporting the Cabinet Office to implement the Resilience Framework, published in December 2022. The Framework will strengthen the identification and management of risks, allowing Government to anticipate threats and increase climate resilience effectively by 2030 • helping vulnerable countries to enhance their resilience to reduce the likelihood of emerging risks cascading to the UK by delivering on our commitment to spend £11.6 billion on International Climate Finance and supporting those who are experiencing the worst impacts of climate change. As part of the UK’s wider ICF spending, government is tripling the UK’s funding for adaptation from £500 million in 2019 to £1.5 billion in 2025 An example of a programme supported by this funding • the Least Developed Countries Initiative for Effective Adaptation and Resilience, which has been allocated £10 million in funding By rapidly identifying emerging climate risks, the UK will be better placed to respond appropriately to specific risks and determine whether they have the potential to cascade or interact significantly with others. FCDO • working alongside CO in the implementation of the Resilience Framework by • supporting CO as it builds a process to account for chronic risks and vulnerabilities facing the UK, such as climate change • engaging in research with international partners on adaptation such as the Organisation for Economic Co-operation and Development, including in their work on the measurement of progress on adaptation

Addressing potentially cascading risks requires not only an improved understanding of those risks through government action to build capability and address evidence gaps, but also coordination across and between governments through strong governance structures. In addition to the new Climate Resilience Steering Board driving further government action to increase UK resilience to climate change, the FCDO and the Cabinet Office • use government’s extensive network of overseas posts, researchers, and international relationships to identify emerging risks and escalating, where necessary, cascading risks through government’s existing risk management governance structures, and risk assessment products such as the NSRA • continue to co-chair the Adaptation Research Alliance, a coalition of researchers, funders, policymakers and community-based organisation, that seek to increase investment and opportunities to develop better adaptation

The challenges of a changing climate are not limited to a particular country, region or locality, but the impacts are specific to each place. We are already experiencing these impacts, and it is only through engaging all parts of central government, including arm’s-length bodies, local government and society that we will be able to adapt successfully. Arm’s-length bodies play a key role in the strategic delivery of actions to adapt the UK to a changing climate. 7.2.1.1 Role of local government Local government plays a vital role in climate change adaptation, both proactively through strategic planning, and reactively through resilience and recovery. Local authorities combine strong local expertise, core decision- responsibilities with the ability to convene local partners from communities and businesses. Therefore, they are crucially positioned to drive forward climate adaptation actions tailored to their unique local circumstances. Local authorities are at the forefront of local action to protect communities and businesses and need to adapt to minimise climate change risks in their areas. They • public infrastructure managing highways, green spaces, and key environmental services; delivering statutory responsibilities; managing water resource availability; and managing public buildings • ‘placemakers’: working with communities to develop local plans, strategies and supplementary planning guidance, as well as, overseeing development,

building control and planning approvals in line with community priorities and • suppliers of critical community support across adult social care, children’s services, public health and more • listening and supporting partners to local identifying areas of local need; building capacity and partnerships with small voluntary organisations; advising people on risks and preparedness, and gathering community input and perspectives to inform local solution • convening cross-sector local stakeholders for discussions and collaboration; licencing, support and development for local businesses, and; influencing local economies through spending power alongside other anchor • partners in local preparing for and responding to climate risks, working in partnership with other agencies through local resilience forums Many of the risks and associated actions will directly involve the role of local authorities. This section highlights climate change actions that local authorities are already taking place, and sets out further actions needed by them and the UK 7.2.2.1 Recent adaptation actions Progress is being made across a number of local authorities to drive more transformational change on climate adaptation. For example, over 300 local authorities have declared climate emergencies, which means they are preparing local strategies and developing and delivering local action plans. To support local authorities in developing their adaptation plans, Defra worked with the Local Government Association and Local Partnerships (LP) to develop the Local Partnerships Adaptation Toolkit. This outlines a 5-step process to help local authorities prepare for the impacts that climate risks could have on their areas. Another resource, the Local Authority Good Practice Guidance was produced by the Local Adaptation Advisory Panel (LAAP) and the Association of Directors of Environment, Economy, Planning and Transport (ADEPT) in 2019.
An example of local authority action is the West Midlands Combined Authority which is developing its adaptation knowledge and capacity to integrate with regional and local governance plans, policies, investments, and decision making. It is integrating

adaptation into retrofit programmes, focusing on overheating, flood risk and water The West Midlands Combined Authority is also trialling community-led approaches to tackling climate change through its new Community Environment Fund, as well as developing an adaptation investment pipeline, to align with its Defra-funded Local Investment in Natural Capital (LINC) Programme. 7.2.2.2 UK government and local government engagement UK government departments work closely with local partners on climate adaptation issues. Defra coordinates the Local Adaptation Advisory Panel, a forum for dialogue on climate adaptation between central and local government, which includes some local authorities and several UK government departments. Departments also work closely with the Local Government Association (LGA) and through its governance structures. For example, Defra has collaborated with the LGA and LP on their 2022 project to investigate, understand and capture the good practice work of local authorities. This work also explores how local government and the UK government can collaborate in creating the framework and support to lead Through the close working relationships and ongoing engagement on adaptation the UK government and its local partners have identified 3 areas to focus efforts during the NAP3 period to support the overall adaptation vision. These are local government and UK government collaboration, access to information and data, and empowering local government. 7.2.3.1 Local government and UK government collaboration Collaboration between the UK government, local government, and local partners is critical to making adaptation work locally. Departments need to identify how climate risks set out in UK-wide CCRAs will relate to those areas where the UK is most vulnerable. To enable this, the UK government requires a better understanding of • Emergency an increase in the severity and frequency of extreme weather conditions across the UK will have an impact on emergency services, local responders and communities. The Civil Contingencies Act 2004 provides a framework for responder agencies to deliver appropriate emergency planning, response and recovery. The Cabinet Office’s Community resilience development framework helps emergency planners ensure communities are central to emergency planning, response and • The CO also hosts webinars with local emergency responders to highlight free educational resources so children and young people can learn lifesaving safety information, available through StayWise. StayWise supports teachers and community safety practitioners in delivering essential safety messages. The resources can also be used to support locally-delivered safety and emergency-focused programmes. There is also the UK Government Resilience Framework, This focuses on the UK’s ability to anticipate, assess, prevent, mitigate, respond to, and recover from all types of civil contingency • Adaptation Reporting Power (ARP): the UK government will work with a group of local authorities to test the costs and benefits to the sector of adaptation reporting under the Adaptation Reporting Power. This will take the form of a pilot, starting in 2023, involving 35 local authorities to co-develop the process for reporting in round 4. It is informed by the government’s engagement with the sector and recommendations by the CCC’s independent evaluation of the third round of adaptation reporting • Local Adaptation Advisory Panel (LAAP): the UK government will continue to work with local authority partners to coordinate the LAAP, bringing technical experts from government and outside together with local authority representatives to share best practice and test policies on adaptation. The government will continue to work with the panel chair to further enhance the panel’s structure and operation

7.2.3.2 Access to information and data Local and UK government recognise that good quality information and data is key to supporting meaningful outcomes for climate adaptation in different local areas. While there are some sources of information and data on climate change available for this purpose, it is not consistently available at all local authority levels. Local and UK government have a shared interest in developing this, building on the significant efforts of many local authorities and other local partners. • UK Climate these provide climate information that can support local decision making to address climate risks. The projections include information on hazards such as heatwaves, and short-term, localised heavy rainfall that can lead to flash flooding. There are benefits of providing even more specific information to the local government sector to inform adaptation decisions. This can help the UK Government build on examples of good • climate risks CCRA4, due for publication in 2027, will include data identifying how climate risks map onto specific places in the UK. This will support more effective local-level risk assessment • Local authority climate the UK government will carry out a one- year pilot for the provision of more specific projections to local areas. This will build on previous Met Office-led work, including ‘city packs’ developed through UK Research and Innovation, and will give all local authorities and LRFs access to critical data to inform adaptation decision-making in local 7.2.3.3 Empowering Local Government As well as access to information and data, local authorities need the means to design and deliver adaptation action in their areas. The UK government has an important role in enabling the sector to mainstream local adaptation. • the government announced the biggest ever transfer of powers away from Westminster in the levelling up white paper. We remain committed to seeing more empowered and accountable local leaders who can respond to the specific challenges and needs of their areas, including those related to climate change. Local leaders are already playing a key role and adaptation is a crucial part of the ‘trailblazer’ deeper devolution deals with the Greater Manchester and West Midlands Combined Authorities. For example, Greater Manchester will be a testbed to explore and develop options for how flood risk management, as well as other adaptation activities, can best be addressed and accelerated at the local level.
Through devolution deals, the government

remains committed to giving local leaders the policy levers they need to successfully meet the challenges presented by climate change at a local level • Local Nature Recovery Strategies appointment and funding of responsible Local Nature Recovery Strategies were introduced in the Environment Act 2021 to help boost nature recovery in England. There will be 48 Local Nature Recovery Strategies areas across England, with no gaps or overlaps. Defra has appointed a “responsible authority” to lead preparation of the strategy in each area. The government has announced £14 million of funding to be distributed to the responsible authorities over the next • UK Shared Prosperity this is a £2.6 billion fund that empowers local authorities to fund interventions based on local need. They can use their UK Shared Prosperity Fund allocation to fund projects that improve green spaces • Local Investment in Natural Capital (LINC) Programme the UK government is providing up to £1 million each to 4 local authority areas - Cornwall, West Midlands Combined Authority, Borderlands (Cumbria, Carlisle and Northumberland), and York and North Yorkshire. The LINC Programme will enable an integrated approach to place-based nature recovery needs and provide investment for local climate adaptation plans and ambitions. Funding will support the aim to build lasting capacity and capability to attract longer term private investment at scale • Strengthening Local Resilience Forums (LRFs): as set out in the 2022 UK Government Resilience Framework. The government will launch pilot programmes in 2024, which will inform a national programme of strengthening to be delivered by 2030. Stronger LRFs will deliver dynamic local risk management, including preparing for climate change-related risks, whilst seeking to adopt a broader remit to increase community resilience and integrate resilience into local policy making. DLUHC and Defra will identify how stronger LRFs can take a role in supporting the delivery of NAP3, and planning for climate risks across local areas NAP3 contains UK government policy and action on adaptation. However, as climate adaptation is a devolved matter, Northern Ireland, Scotland and Wales also produce their own adaptation plans. The legislative framework for each country’s action on adaptation is set out in the CCA 2008 for England, Wales, and Northern Ireland, and the Climate Change (Scotland) Act 2009 for Scotland. Some of the risks identified in CCRA3 cover reserved matters, for example risks relating to international violent conflict arising from climate change. In these instances, the policy response set out in NAP3 refers to actions for the whole of the UK. The UK government is committed to working closely with the devolved administrations to support climate adaptation across the UK. 7.3.1 Northern Ireland Executive 7.3.1.1 Statutory duties and approach Northern Ireland’s legal framework for climate adaptation is set out in section 60 of the CCA 2008. The relevant Northern Ireland department must produce an adaptation programme that responds to the risks of climate change as identified in the most recent UK CCRA. The Climate Change Act (Northern Ireland) 2022 contains requirements for climate change action plans to be climate resilient, and a duty on the CCC to undertake a mid-term assessment of progress and provide recommendations for future Northern Ireland Climate Change Adaptation The second Northern Ireland Climate Change Adaptation Programme (NICCAP2) was published by the Department of Agriculture, Environment and Rural Affairs in September 2019. It is the cross-departmental response to the risks identified in the second CCRA. Work is continuing to implement the actions contained in NICCAP2. The next NICCAP is due to be published in 2024 and will respond to the risks set out 7.3.1.2 Strategic intentions and priorities Given the critical role that local authorities play in delivering effective adaptation measures, engagement with local councils and civil society have been an important part of NICCAPs. To improve links between national and local adaptation planning, NICCAP2 contained a specific chapter to capture adaptation action by local councils To support engagement with local authorities, the Department of Agriculture, Environment and Rural Affairs funds the Climate Northern Ireland Project. Part of this project has been to establish a Local Government Climate Action Network, which 10 of the 11 councils of Northern Ireland have committed to participate in. The Climate Northern Ireland Project team have also developed a toolkit called ‘NI Adapts’ to provide useful information to inform the development of climate adaptation

7.3.1.3 Recent adaptation achievements and actions Work is underway to improve the research and evidence base around climate change risks and impacts. For example, a baseline coastal survey is currently being undertaken and will improve the knowledge base and understanding of the coastal environment. It will provide departments with the data to model potential coastal erosion and flooding impacts and in turn develop policies and plans which build Northern Ireland departments recognise the role that nature-based solutions will have for both climate change mitigation and adaptation. There are several strategies in development and programmes underway aimed at improving the condition of our natural environment. These include the Peatland Strategy, Environment Strategy, Biodiversity Strategy, several marine strategies and the over-arching Northern Ireland Executive Green Growth Strategy. Separately, programmes of work such as Forests for Our Future, which aims to plant 18 million trees by 2030, are progressing. In November 2022, the Northern Ireland Housing Executive launched its Corporate Sustainable Development Strategy and Action Plan (2022 to 2027). As part of this, the Northern Ireland Environment Link have been commissioned to facilitate the delivery of a Climate Adaptation Plan over an 18-month period, identifying key climate risks for the organisation and targeted and effective adaptation measures. 7.3.2.1 Statutory duties and approach The Climate Change (Scotland) Act 2009 sets the statutory framework for Scotland to adapt to climate change. The legislation requires a programme of policies and proposals for climate change adaptation to be set out every 5 years. These programmes must address risks identified in the statutory CCRA. The current programme, Climate Ready Second Scottish Climate Change Adaptation Programme, was published in September 2019.
It sets out over 170 policies and proposals (and an associated research programme) to respond over the period 2019 to 2024 to the risks for Scotland identified in the second CCRA. The second Scottish Climate Change Adaptation Programme (SCCAP2) takes an outcomes-based approach and is designed to integrate action on adaptation into wider Scottish Government policy and service delivery. There are 7 high-level outcomes that cover Scotland’s communities, businesses and natural environment as well as engagement with international partners. 7.3.2.2 Strategic intentions and priorities Action on adaptation and resilience, alongside reducing emissions to net zero, is at the heart of Scotland’s just transition approach. The Scottish Government is continuing to deliver the actions of its current programme while developing its next statutory climate change adaptation programme. While progress on climate adaptation continues to be made, it is also clear that more needs to be done to build The next statutory programme for Scotland will respond to the climate risks identified for Scotland in CCRA3 and will be published in autumn 2024. To further support Scotland’s climate resilience, the Scottish Government will consult on a new National Flood Resilience Strategy for Scotland, publish dynamic 5-year delivery plans to support the new Scottish Biodiversity Strategy and are co-developing a series of just 7.3.2.3 Recent adaptation achievements and actions Examples of building climate resilience under SSCAP2 • providing Scottish local authorities with £42 million annually for flood protection measures and committing to invest an extra £150 million in flood risk management over this Scottish Parliament – representing a 70% increase in the flooding budget. £12 million has also been allocated for coastal change adaptation, informed by the Dynamic Coast project over the years 2022-23 to • investing £250 million over 10 years on peatland restoration, which supports the co-benefits of carbon sequestration, improved natura and tackling • the new Scottish Biodiversity Strategy, which sets out our ambition for halting biodiversity loss by 2030 and reversing declines by 2045, is supported by a flexible delivery plan and a new Natural Environment Bill 7.3.3.1 Statutory duties and approach The current arrangements for national climate adaptation planning in Wales align to the overall statutory cycle set out in part 4 of the CCA 2008 and Wales’ national plan is informed by the CCC’s Climate Risk Independent Assessment. The Welsh Government’s current 5-year national adaptation plan, Prosperity for A Climate Conscious Wales, was published in December 2019. The next plan is due to be

Adaptation planning in Wales is supported by the Wellbeing of Future Generations Act 2015. The Environment (Wales) Act 2016 also includes provisions for the sustainable management of natural resources and flood and coastal erosion 7.3.3.2 Strategic intentions and priorities The Welsh Government’s 2021 programme for government commits to embedding the response to the climate and nature emergencies into everything it does. A climate change Ministerial portfolio has been created to oversee this commitment. The Welsh Government recognises the need to engage all sectors of society in climate adaptation and is developing a 5-year Strategy for Public Engagement and Action on Climate Change. This strategy will outline how to involve people in climate policies that affect them. It will also set out how to work with trusted messengers, reaching different groups in society to enable and support public action at a local and The Welsh Government’s strategic approach to developing the next national adaptation plan includes consideration of further measures to address the areas highlighted by the CCC’s 2021 advice and their recommended principles for good adaptation. It will use updated methodological approaches for mapping and monitoring of pathways towards good adaptation outcomes. This includes whole system perspectives for addressing different areas of climate risk and considering the implications of cascading impacts and interrelationships. A ‘Team Wales’ approach will enable broader consideration for the actions needed across the Welsh public sector, stakeholders and society. 7.3.3.3 Recent adaptation achievements and actions In December 2022 the Welsh Government published a progress report on its current national adaptation plan. In addition to reporting on actions being taken across policy areas, the report includes an indication of additional steps to be taken in response to the updated evidence highlighted by the CCC’s third Climate Risk Independent Assessment. The Welsh Government has also commissioned an independent assessment by the CCC in relation to climate adaptation progress and future priorities in Wales, which is due to be published in September 2023. Recent key policy developments helping to drive climate adaptation in Wales include the publication in 2020 of new Water Resource Management Plans by water companies, Area Statements by Natural Resources Wales, the Flooding and Coastal Erosion Management strategy, as well as the launch of the National Peatland Action Programme. In 2022, the Welsh Government published an outline of its proposed new Welsh Sustainable Farming Scheme, aiming for the final scheme to be phased

in from 2025. An update to the Building Regulations was published in November 2022 to address overheating and indoor air quality in new homes and in building

Chapter 8: Strategy for the fourth round of climate adaptation reporting This chapter sets out the government’s strategy for the fourth round of climate adaptation reporting under the Adaptation Reporting Power (ARP). It is presented to Parliament pursuant to section 65 of the CCA 2008. This follows the statutory consultation on our proposed approach to the fourth round of reporting, which ran from February to April 2023. A summary of consultation responses, with more detailed information about stakeholders’ views, has been published alongside this ARP was introduced under the CCA 2008. It gives the Secretary of State the power to direct organisations with functions of a public nature and statutory undertakers to • the current and future projected impacts of climate change on their • proposals for adapting to climate change • an assessment of progress towards implementing the policies and proposals Successive rounds of reporting have shown that it helps organisations make climate risk management a leadership priority and integrate it into their risk management governance.
It supports them to assess their exposure and take action to reduce their vulnerability. It raises the profile of climate resilience work within the organisation and beyond – raising awareness, building capacity, and making examples of good practice publicly available. It also provides vital information to the government on the readiness of important sectors for climate change. Reporting is usually undertaken in a 5-yearly cycle. Following strong support for the proposals in our consultation, the fourth round of reporting will be undertaken to a different timescale than previous rounds. This will improve the alignment of adaptation reporting with other elements of the statutory framework for climate change adaptation. The closing date for the next round will therefore be brought forward to late 2024 (from 2026). After this, reporting will return to its 5-yearly cycle. In recognition of the fact that this change means that the reporting window for round 4 will be shorter than in previous rounds, most other elements of the reporting strategy are broadly consistent with round 3. Reporting will minimise burden,

focusing where possible on updates since round 3. Guidance and templates will be issued to facilitate participation, particularly among those who have not reported As in previous rounds, reports will be invited from bodies in the energy, water, transport, health, heritage, environment and financial sectors. There will be some targeted scope expansion, in line with recommendations made by the CCC. Reporting will be on a voluntary basis, building on the collaborative approach of the A comprehensive review of adaptation reporting will be undertaken ahead of round 5. This will consider the ways that reporting drives adaptation outcomes, the role of the process in the context of the evolving landscape for climate risk reporting by businesses and public bodies, and how the power can be used to greatest effect in future. The desired outcome is a process that remains fit for purpose in driving action on adaptation and informing the government on the climate change preparedness of 8.2 Objectives for the fourth round of reporting Consistent with the previous round, the objectives of this round will be 1. support the integration of climate change risk management into the work of 2. build understanding of the level of preparedness of key sectors to climate change, at a sectoral and national level, and inform other parts of the government’s statutory cycle for climate adaptation, including CCRAs and NAPs To better support the second objective, round 4 will operate on a shorter timescale than previous rounds, allowing around one year for the preparation of reports, rather than approximately 3 years as before. As such, the closing date for the fourth cycle of reporting will be brought forward to late 2024 (from 2026). After this, reporting will return to its 5-yearly cycle. This will allow adaptation reports to be included in the analysis for the CCC’s independent risk advice to government, ahead of the Reporting requirements will seek to facilitate reporting in this reduced time frame. We do not anticipate organisations’ risk profiles to have changed significantly since round 3, which closed at the end of 2021. Reporting will focus primarily on what has changed since round 3. Updates to risk assessments can be submitted where there have been significant changes. However, the focus will be on progress with the actions taken in response to the risks identified in round 3 reports, any changes to risk governance, and any new In support of the above objectives, as for round 3, the following principles for 1. reporting should be proportionate, risk-based and streamlined to minimise 2. reporting should build on previous rounds of reporting to improve report quality where appropriate, and participation Section 62 of the CCA 2008 gives the Secretary of State the power to direct reporting authorities to provide reports. A reporting authority is defined as ‘a person or body with functions of a public nature’ or ‘a person who is or is deemed to be a statutory undertaker’ under the Town and Country Planning Act 1990 (or the relevant planning legislation in Scotland and Northern Ireland). Ministers of the Crown, the Houses of Parliament, devolved authorities and devolved legislatures are specifically Whilst the Secretary of State has the power to allow the government to mandate reporting, this has not been used since the first round of reporting. The previous 2 rounds have been built on a collaborative relationship between government and industry, where eligible organisations were invited to report voluntarily. Take-up has not varied significantly between voluntary and mandatory rounds, with round 3 seeing more organisations than ever taking part, albeit a growing proportion of them We consulted on whether reporting should remain voluntary or be made mandatory in round 4. There were 68 responses to this question, with no clear majority on either side. The largest number of responses (33, representing 48.5% of the total) were in favour of mandatory reporting, either outright, or in principle. 16 (23.5%) said it should remain voluntary (including 2 joint responses which would otherwise boost this number by 3), and 19 (28%) were non-committal. However, many of those in favour of mandatory reporting caveated their responses. They cited practical challenges for both the government and industry to achieving mandatory reporting in a shortened timeline for round 4, and the need for such an approach to be proportionate and complementary to other regulatory requirements. The consensus view that has emerged from the consultation is that ARP reporting should be kept voluntary in round 4 but made mandatory in round 5. A number of responses suggested that this is the sensible approach that balances the urgency of taking action to address climate risk against the practicalities and reporting burden, in the context of a shorter reporting round. Therefore, given the proposed changes to the reporting timeline, reporting will remain voluntary in round 4. We will only invite organisations which are deemed to be in scope of the legal power (although this will not preclude others from reporting).
We will review this position again ahead of round 5. The CCC highlighted some gaps in coverage in certain infrastructure sectors. For example, we have an incomplete picture of how resilient some strategically important transport hubs are. We will work with the relevant industry associations and operators to determine how best to encourage an uptake in reporting where there are gaps. Consultation responses from relevant organisations were supportive of this approach. They were happy to engage with the government and their members on We will also seek feedback from individual non-reporting organisations to find out more about the barriers they faced to reporting in round 3, and what can be done to support them to report voluntarily in round 4. This will build on the range of suggestions made by respondents to the consultation. Please read ‘Guidance and templates’ below for more information on what support we propose to make available Since ARP was introduced through the CCA 2008, the adaptation policy landscape has changed significantly. There are a range of other climate risk reporting requirements which have the potential to overlap with reporting requirements under ARP. Most notably in recent years, this includes disclosures aligned with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). The regulations require certain companies to report climate-related financial information in their strategic report, including scenario analysis – a powerful tool to help them assess climate-related risks and opportunities, which will support better resilience against climate risks. The global sustainability disclosures landscape continues to evolve. In June 2023 the International Sustainability Standards Board published 2 sustainability disclosure standards, which build on the TCFD recommendations and will help to set a global

baseline for disclosure requirements. The government will set up a framework to assess the suitability of their standards for adoption in the UK. A key principle of ARP reporting is that it should gather the necessary information whilst minimising reporting burden and duplication. We recognise the potential for adaptation reporting to duplicate wider requirements for climate risk disclosures, now Our position for this reporting round is that there is still a valuable role for ARP. Not all reporting organisations fall within the scope of TCFD. For those that do, TCFD does not yet provide the breadth and depth of information provided under ARP, including the detailed risk assessments and action plans. This position was supported by the organisations that responded to the CCC’s evaluation of round 3, and strongly supported in the consultation feedback. No organisation in scope of TCFD expressed the view that it entirely fulfils the objectives of ARP. A range of gaps and differences were cited. The consensus among respondents was that although there are some overlaps, ARP currently complements other reporting, and remains a useful tool. We will keep this position under review for future rounds of ARP and as the sustainability disclosures landscape continues to evolve. The third round of reporting included more consolidation into summary reports than in previous rounds. This approach was taken to streamline the reporting burden, particularly where target sectors were made up of numerous small organisations. Including such organisations as reporting authorities was deemed to be disproportionate. Instead, certain umbrella organisations were invited to report on behalf of their members. Determining proportionality occurred on a case-by-case basis, and government did not define a specific threshold. The voluntary approach taken in round 3 meant that there was scope for discussion with government to ensure that the reporting process was proportionate and beneficial. We acknowledge concerns raised by the CCC about the level of detail in some of the sectoral overview reports. We also recognise the value that sectoral reporting can bring by providing insights about a sector’s overall risk profile and exposing potential vulnerabilities within interconnected systems. We consulted on whether to maintain the case-by-case approach to sectoral reporting in round 4. This approach was supported by the majority of respondents (62%), compared to 10% against and 28% undecided. Respondents in favour

supported an approach that minimises burdens on small organisations and provides leadership and coordination for sectors. Those against were concerned about consistency and a lack of granular detail. We are engaging with those sectors that reported collectively in round 3. In some of these cases, we may establish a proportionate request for individual reporting. Where sectoral reports remain the most appropriate solution, we will work with industry representatives to find ways to improve the reports and the information they provide. Please read ‘Scope’ below for further detail. We will also work with sectoral bodies to improve the consistency of individual reporting across sectors. Please read ‘Guidance and templates’ below for further In addition, further information on our stakeholders views on sectoral approaches is available in the aforementioned consultation summary. 5 regulators submitted reports in round 3: the Financial Conduct Authority, the Pensions Regulator, the Prudential Regulation Authority, the Environment Agency and Ofwat. 3 invited regulators did not submit a report (Ofcom, Ofgem and the The regulators’ reports typically present a summary view of climate risks to their sector and information on the actions the regulator is taking to drive action on adaptation in the sector. This is appropriate to their remits. The CCC recommended that we consider whether reports by regulators should follow a different format to those by infrastructure operators, in recognition of their roles in oversight and assurance, rather than infrastructure delivery. A detailed risk assessment and programme of adaptation measures is typically not relevant, as the regulators don’t own or manage the assets themselves, and this information is already provided by 47 (of 76) consultation respondents made comments highlighting the important role played by regulators in building the picture of climate resilience across the regulated industries, and in providing leadership, challenge and assurance to those they oversee. On this basis, we will continue to invite reports from regulators and will issue guidance on what their reports should include. Annex 4 lists the regulators we intend to invite. This list may be extended subject to further engagement.
8.7 Reporting on interdependencies and cascading Interacting risks pose one of the biggest challenges when assessing climate risks. System resilience to climate change goes beyond individual risks, as all infrastructure sectors are connected. Vulnerabilities on one network can cause problems for others, and impacts can ‘cascade’ beyond the primary infrastructure asset, affecting the economy, health and wellbeing. Given the wide-ranging nature of the linkages within and across sectors, it is difficult to get a full understanding of the impacts of cascading failures. The vulnerability of interconnected systems may be Adaptation reporting has the potential to be an important lever in addressing interdependencies and the potential of ‘cascading failures’, both by helping organisations to consider their own interdependency risks and by informing the Many respondents to our consultation acknowledged the significance of interdependent and cascading risks. Many said they will report on them but would welcome guidance and further support. Some have the capacity to report on these risks but are only able to identify a small range of interdependencies in their area. Some find identifying owners of these risks to be a challenge. Those who stated they are unable to report on such risks identified a lack of resources and understanding Respondents noted the value of reporting on interdependent risks in driving progress by facilitating collaboration within and across sectors. 64 respondents wanted to see the government take a more active role (through knowledge sharing, regulatory measures, funding or facilitation) in bringing relevant authorities together to build In round 4, we will guide reporting organisations to explain their approach to identifying and managing interdependencies. We will provide guidance on the inclusion of appropriate and proportionate details of interdependencies in risk assessments and action plans, recognising that levels of maturity and capacity will vary between organisations and sectors. Given the compressed reporting timeline, reporting on interdependencies will be voluntary. We will encourage and facilitate cross-sectoral working and welcome any joint reports that come forward as a result. This flexible approach will lay the ground for future work in this evolving area. The position will be reviewed again ahead of round 5. In previous rounds of adaptation reporting, the government produced a range of guidance materials to support reporting organisations. In the third round, a template and frequently asked questions document set out the key components of reports. Organisations were given flexibility on how they wished to structure their reports and were not obliged to report in the exact format of the template. Feedback from reporting organisations has shown that the template was useful in highlighting the areas that reports should cover. Our proposal to develop a template to facilitate reporting in a shorter fourth round, whilst being flexible about its use, was met with widespread support in the consultation. Respondents noted that this would set the standard for good practice by demonstrating the minimum requirements for reporting, help organisations structure their reports, and enable consistency and comparison among organisations We will develop a round 4 reporting template which balances the need for reports to cover certain areas whilst minimising the reporting burden. The template will cover the three tenets of 1. Information about an organisation’s corporate governance 2. A climate change risk assessment (noting that the risk landscape may not have changed in the last few years for organisations who reported in round 3) 3. An action plan setting out measures to address the risks identified We will provide supplementary versions of the template for use by different types of reporting organisation, such as regulators and trade associations. We will tailor our guidance to both those who have reported before and those who will be reporting for the first time. We will not compel organisations to report in the format of these templates, but they should serve as a guide for content of adaptation reports. We will work with sectoral bodies to test the content of templates and enable approaches that work best for different sectors, supporting improvement where 8.9 Evidence and risk assessment To date, organisations have been given flexibility on the climate models and emissions scenarios to use for their risk assessments. This system has worked well because of the wide range of organisations and needs represented. Most consultation respondents (69%) supported a standardised approach to risk assessments and mandating the use of specific climate scenarios. However, there

were strong arguments both for and against standardisation. Many respondents qualified their choice in some way, for example, supporting standardisation but not mandated scenarios, advocating for a blended approach or bespoke approaches for different sectors, or deferring until round 5. On this basis, we will maintain a flexible approach for round 4, with guidance on the application of climate projections and scenarios according to the needs of different sectors and organisations. 67% of respondents also agreed that organisations that reported in the third round should be free to submit an update to their risk assessment, rather than a full new one. However, many noted the importance of updating their risk assessment proportionally with changes to their respective risk landscape. A primary objective of adaptation reporting remains to support organisations’ own risk management work, so the flexibility in the current system is highly valued. Therefore, for round 4, we will invite organisations that have reported previously to submit updates on their risk assessments and governance arrangements if appropriate. However, the primary focus of reporting will be on progress updates to the action plans set out in response to the round 3 risk assessments. For organisations that did not report in the third round, we will ask for a climate change risk assessment, but will provide guidance as to how this can be carried out to 8.10 Devolved and reserved matters The CCA 2008 provides for reports to be sought on reserved matters.
The Secretary of State has the power to issue directions to report to organisations in devolved administrations but cannot give directions relating to a reporting organisation’s The section 62 reporting power can therefore only be used on organisations whose functions are in England or are outside England and relate to reserved matters in Scotland, non-devolved matters in Wales and excepted or reserved matters in Some of the functions exercised by these organisations in the devolved administrations relate to matters which are not fully devolved. The devolved administration still has some joint or concurrent control over these functions with a minister of the Crown, or there are requirements for consent or consultation. The voluntary approach we are taking to round 4, whereby the government will not be issuing directions to reporting organisations, will not conflict with the devolved administrations’ corresponding powers over reserved, non-devolved or excepted

matters. Respondents commented that the same approach worked well in previous rounds and aligns with organisations’ existing practices. In round 3, 9 reports were received from organisations with activities in the territorial extent of one or more of the devolved administrations (from airports and power companies). For round 4, we will work with the relevant devolved administrations on our approach to increasing coverage of sectors where gaps have been identified, as necessary, on reserved, non-devolved or excepted matters only. We did not receive any objections to this approach as set out in the consultation. The government will invite all those who reported in previous rounds to provide an update report. Some new organisations will also be asked to report, particularly where the CCC has identified gaps in the current system. We will minimise the reporting burden as much as possible for both existing and new summary of our approach to reporting among the target sectors, including those where the CCC has recommended expansion. This has been informed by responses to the consultation and other engagement since 2021. It reflects the split between devolved and reserved matters described above. In some cases, our approach remains subject to ongoing discussion with relevant stakeholders. In addition to those sectors detailed in the summary, we will also consider the potential for reporting by the Space sector and other Critical National Infrastructure sectors not There is a balance to be struck between proportionality and recognition of the pros and cons of sectoral overview reporting, as well as whether organisations fall within the scope of the legal definition for the use of the power. We will not invite organisations outside of the scope of the legal definition to report. We will take a case-by-case approach to determining proportionality, as what is appropriate for one sector may not make sense for another. The approach to all sectors will be reviewed ahead of the fifth round of reporting. Other bodies can come forward to report voluntarily should they wish. The CCC has also recommended including Local Authorities (LAs) in the scope of adaptation reporting. This is in view of their responsibilities for local transport, planning and local resilience in particular, although their remits extend beyond these into many areas that will be impacted by the changing climate. There was strong support for our consultation proposal to undertake a pilot of reporting among a group of LAs, to test its costs and benefits. Around 40 LAs have signalled their interest in taking part. We will co-design the pilot with a group of these volunteers, to ensure the process will complement existing risk management practices and drive adaptation action in a non-duplicative way. This will need to take account of existing duties on LAs and differing scales of responsibility to manage climate risks and report, including the reforms to improve how Local Resilience Forums operate. It will also need to add value in raising the profile of climate adaptation and building capacity at the local After the reporting window closes at the end of 2024, we will evaluate the pilot to explore how well it worked and what value it brought at the various levels of local government involved. This will inform future considerations of the case for wider roll- out across the sector in later rounds of adaptation reporting. An aerial view of a causeway running through tidal mudflats in Essex. Page 12: © ChunYip Wong / Getty Images Page 20: © Jenni Shepherd / National Trust Page 26: © Enviromantic / Getty Images Page 32: © Mischa Keijser / Getty Images Page 35: © Justin Paget / Getty Images Page 49: © Nigel Hicks / Getty Images Page 69: © National Farmers Union Page 70: © DK Media / Getty Images Page 77: © Monty Rakusen / Getty Images Page 81: © Monkeybusinessimages / Getty Images Page 85: © George Clerk / Getty Images Page 91: © Chinaface / Getty Images Page 94: © Jacobs Stock Photography Ltd / Getty Images Page 96: © Narvikk / Getty Images Page 102: © Alexis84 / Getty Images Page 104: © Ti-ja / Getty Images Page 114: © Monty Rakusen / Getty Images Page 115: © George Clerk / Getty Images Page 126: © AzmanL / Getty Images