The number of British companies warning of extreme weather has risen twentyfold since 2015.
References to “extreme weather” occurred just 35 times in filings made by companies on the FTSE 350 in 2015, according to an analysis of company records on Factset. In 2024 this figure had risen to 741 mentions, with 560 references to the phrase in filings by the 350 largest listed companies in the UK so far this year.
Companies across a variety of industries have pointed to extreme or unusual weather events as a reason for faltering or unexpected sales.
Last month Greggs warned that operating profits at the bakery chain could be “modestly below” 2024 due to the heatwave in June, which boosted demand for cold drinks but reduced overall shopper numbers, causing a slowdown in sales growth in the first half of the year.
Rio Tinto said in April that extreme weather events had affected operations at its Pilbara iron ore mine in Western Australia, though it added last month that production had recovered well since.
However, the majority of the increase in references to extreme weather in company filings over the past decade came in the form of companies warning of the risks that such events might pose to their businesses in the future.
Currys and Watches of Switzerland recently warned of the potential impact of extreme weather events in their full-year results. The luxury watch seller said that their increasing frequency could lead to significant disruption of retail showrooms, offices and distribution centres through flooding and strong winds, while the electricals retailer said extreme weather events could increase footfall for consumers seeking air-conditioning in some regions during heatwaves, but could also lead consumers to shop online more than in stores.
Customer numbers were down in Greggs outlets during the heatwave in June
HOLLIE ADAMS/BLOOMBERG/GETTY IMAGES
The increasing prevalence of warnings about extreme weather is not specific to the UK either.
Research by Sara Mahaffy, a managing director at RBC Capital Markets who runs the bank’s sustainability strategy research, found that discussions of physical climate risks on earnings calls has hit new highs in 2025 in the US and Asia.
She added that the increasing prevalence of references to extreme weather underscored a wider trend occurring across the private sector, in which a premium was increasingly being placed on adapting to climate change and its impacts, rather than just mitigating them.
“What we noticed when we looked at ESG [environmental, social, and governance] debt issuance and green bond issuance, the private sector is increasingly integrating adaptation as part of the eligible criteria,” Mahaffy said.
“For so long, so much of the focus was on mitigation and renewable energy, energy efficiency, but we’re starting to see adaptation creep in more. As the private sector is feeling these impacts directly, they are taking the steps themselves to build resilience.”