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As climate patterns shift, prolonged dry spells are becoming more frequent and severe across the UK. For businesses, drought can create risks beyond hot weather alone, including operational, financial and physical challenges that may affect production, place pressure on supply chains and damage assets.
Understanding these risks and taking practical steps to prepare can play an important role in business continuity planning – we've laid out this guide to help.
The most immediate concern for many businesses is operational dependency on water. High water-use industries operating in food and drink, consumer goods, chemical processing textiles and data rely on consistent water supply for cleaning, cooling and production. Even modest restrictions or pressure reductions during periods of drought can quickly affect output and quality. Hosepipe bans are regularly in the headlines, but for industry the real threat lies in abstraction license constraints or supply interruptions that bring production lines to a halt.
It is important to consider not just your own water needs, but the needs of your entire supply chain. Drought can disrupt agricultural output or the availability of raw ingredients, and impact upstream processing facilities. Low river levels can restrict barge freight on inland waterways, with knock-on effects for logistics networks that depend on them.
There is also the physical impact on assets to consider – prolonged dry conditions can cause ground shrinkage, increasing the risk of subsidence to buildings, foundation and underground pipework. Infrastructure that has remained stable for decades can shift unexpectedly when soil moisture falls below certain levels.
Unfortunately, the challenges presented by periods of drought rarely occur in isolation. Dry landscapes increase the likelihood of wildfire, threatening premises and interrupting operations. Hardened, impermeable ground also means that when rain eventually returns, surface water flooding can quickly follow – hitting businesses with a second crisis as they emerge from the first.
Smart businesses will need to include increased risks from climate change as part of their business continuity planning; understanding the impacts that increasingly common extreme weather events can have on their business and taking preventative measures to minimise exposure.
The foundation of any effective response is integrating drought into existing business continuity plans. Start by identifying every process that depends on water, and what might happen if supply were reduced or interrupted and update your risk register accordingly. Develop plans for operating at reduced capacity, rescheduling production, or managing temporary shutdowns without damaging stakeholder relationships.
Improving water efficiency should be a priority regardless of drought conditions. The following steps can help you understand water reliance and minimise waste:
Water efficiency measures help build resilience but also reduce costs outside of drought conditions – and are increasingly becoming expected by regulatory bodies during drought conditions.
Identify which suppliers operate in water-stressed regions and engage them on their own preparedness. Where vulnerability is high, considering building resilience through alternative sourcing arrangements or strategic stock buffering of essential materials where possible.
Monitor your sites to spot problems quickly and take action:
Sign up for local weather warnings from the Met Office and follow guidance from the Environment Agency to prepare your businesses for prolonged dry periods.
While the effects of extreme weather events cannot always be avoided entirely, their impacts can be mitigated by foresight, planning and responsiveness. Defining clear trigger points for action as dry conditions arise can help you spot issues before they become critical.
Extreme weather preparedness is not about predicting the weather or avoiding its effects altogether – it is about understanding the risks to your businesses and being prepared when they do happen, to ensure your business can keep operating with minimal disruptions.
Green Economy offers climate adaptation advice and guidance for businesses - our specialist consultants will work with you to identify risks, plan preventative measures and insulate your business against the impacts of extreme weather events. If you'd like to explore how we can help your business, get in touch.
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