An increased focus on risk resilience and disclosure by companies of the disaster risks they face would create an environment where the private sector and governments can more effectively respond to climate change, Britain’s Prince of Wales said yesterday.

Prince Charles was speaking on Wednesday in London at the International Insurance Society’s 50th Annual Seminar, an event that is being held in conjunction with the United Nations Financial and Private Sector Disaster Resilience Global Summit.

Business Insurance quoted him as saying: “Truly sustainable development has to be founded on the principles of resilience and a proper appreciation of risk.

“But they in turn are underpinned by fundamentals such as systems health, ecosystem functionality and the need for all of humanity to live in harmony with the environment.”

He added: “Banks, financial institutions, insurance companies and institutional investors all have a role in assessing the risks to their businesses posed by climate change and natural disasters.”

Advances in climate science and big data make it easier for organisations to assess their risks. “A comprehensive understanding of risk, including the risks of climate change, the food-water-energy nexus and resource scarcity is now increasingly straightforward,” Prince Charles said.

And details on those risks should be disclosed. “I can’t help thinking that the disclosure of disaster risk on companies’ balance sheets, and indeed those of nations, would certainly concentrate the mind,” Prince Charles said.