MORE than nine in every 10 persons and businesses in Jamaica have indicated that they are unprepared for the impacts of climate change. The results were gathered from surveys carried out in the last quarter by Jamaica Chamber of Commerce as part of its assessment of the confidence that consumers and businesses have in the prospects of the economy.

According to the survey, dubbed Navigating the Climate Horizon, 96 per cent of individuals surveyed said they were unprepared for the effects of climate change while only four per cent claimed they were prepared. Similarly, 97 per cent of businesses surveyed expressed a lack of preparedness, with only three per cent feeling prepared. Despite this widespread unpreparedness the survey revealed that most individuals and businesses recognise the negative impacts and potential threats of climate change — including higher temperatures, droughts, increased electricity bills, health issues, and flooding — with businesses citing similar concerns about climate change affecting productivity.

“I think Beryl has been a wake-up call in some ways because I hear people now talking about things they never talked about before,” said Gail Moss-Solomon, general counsel and chief corporate secretary, GraceKennedy and Company Limited, during a panel discussion following the findings.

Moss-Solomon emphasised that businesses and consumers must be better educated to prepare for the impacts of climate change. Other climate experts noted that, despite the Conference of the Parties 21 (COP21) Paris Agreement’s goal to limit global warming to between 1.5 degrees Celsius or less than two degrees above pre-industrial temperatures by 2030, the world is already experiencing warmer temperatures, arguing that adaptation is crucial, and knowledge is key. To support this, Inter-American Development Bank (IDB) is taking steps to ensure that more businesses adopt climate-resilient practices, requiring them to integrate these practices into their operations when applying for financial aid, both in the public and private sectors.

“Within the region we have the one-Caribbean plan. As we deal with our countries and implement our projects, the idea of climate risk is incorporated into our programming, so any loan that we have within Jamaica and any region — both Latin America and the Caribbean — now has to bring this climate change risk element into it and provide solutions to manage that risk,” said Gerald Allend, climate change senior specialist at IDB.

Overall, business confidence has declined in the second quarter compared to the first quarter of this year, with a 3.4 percentage point drop. Larger businesses experienced a more significant fall in confidence, with five per cent of them feeling less confident about current business and economic conditions compared to the previous quarter. Additionally, businesses are less optimistic about investments with the investment index falling from 142 to 125, indicating a decrease in bullish sentiment.

“Fewer businesses are saying it’s a good time to invest,” said Don Anderson, executive chairman of Market Research Services Limited, in delivering the findings.

In the first quarter, 60 per cent of businesses surveyed considered it a good time to invest but this figure dropped to 50 per cent in the second quarter, representing a 12 percentage point decline. However, the tourism and hospitality sector showed the most significant increase in investment intent, rising from 40 per cent to 63 per cent between Q1 and Q2. In contrast, the transport, storage, and communications sector experienced the sharpest decline, plummeting from 67 per cent to 20 per cent. Despite this, businesses continue to cite lack of funding and access to finance as their primary obstacles to expansion, with 29 per cent of respondents identifying this as a major setback, up from 21 per cent in the previous quarter.

An ongoing concern that is increasingly worrying both consumers and businesses is the expected worsening of crime over the next 12 months, with 61 per cent of both groups sharing this anticipation. Among businesses, 18 per cent cited high input costs as their second-most pressing concern, followed by crime as their third-most pressing issue. This concern is intensifying, as reflected in the consumer confidence index which fell by three per cent in the latest survey. The survey, conducted between April and June 2024, polled over 600 consumers and included a minimum of 100 firms across various industry profiles.