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The Business of Adapting to Climate Change: A Call to Action About IBLF Redefining growth to help build a sustainable world. The International Business Leaders Forum (IBLF) is an independent, not-for-profit organisation working with leading multinational companies, governments and civil society on the responsible business agenda. Founded in 1990 by the late Robert Davies and HRH The Prince of Wales, IBLF has led the field in promoting the role of business leadership in corporate responsibility and development. The organisation is supported by a network of over 85 companies from Europe, America, Asia and the Middle East and more than 200 affiliated organisations worldwide. Headquartered in London, IBLF also has active regional offices in Moscow, Mumbai and Beijing. www.iblf.org Acknowledgements The Business of Adapting to Climate Change has been produced by the International Business Leaders Forum. It has been made possible through the generous support of Coca-Cola Enterprises. Written by: Oliver Balch Stephen Kenzie 2 Lead Researcher: Nicole Alexiev 3 1 Essential Contributions from: Mina Badtke-Berkow, Anna Chen, Nick Claridge, Nabil Haque, Claire Ho, Shivangini Jervis, Jie Jin, Fatima Kahn, Francesca Leadlay, Elen Paula, Antoinette Phillips, Jessica Scholl, Heather Sumpter, Ina Velikova 4 6 7 8 9 5 10 Photo credits Image 1: Image courtesy of Syngwenta Image 2: Image courtesy of Climate Himalaya; Image 3: Photo © iStockphoto.com Image 4: Image courtesy of iStockphoto; Image 5: Image courtesy of Tara Oceans Image 6: Image courtesy of Tree Hugger Image 7: Image courtesy of un.org © Peter Arnold, Inc. / Glen Christian Image 8: Skating at Tower Bridge © Robert Graves and Didier Madoc-Jones; <http://www.postcardsfromthefuture.co.uk/> Image 9: Image courtesy of W Visser Consultancy; Image 10: Image courtesy of Syngenta Table of Contents Foreword 3 Introduction 4 What is Climate Change Adaptation? 5 Why is Climate Change Adaptation Important For Business? 6 A Framework For Corporate Action on Climate Change Adaptation 8 Understanding Adaptation Issues: Water 10 Human Capital 13 Energy 15 Food/Agriculture 18 Ecosystems 21 Extreme Weather Events 23 Call to Action 25 Further Reading 26 End Notes 28 Foreword Climate change will significantly impact how business develops, produces and markets its products and services. This represents an enormous risk to businesses that are unwilling or unable to adapt. However, it also represents an incredible opportunity for those companies with the foresight and capacity to respond. In our constantly changing business and social environment, tomorrow’s successful companies must think beyond quarterly profits and focus on contributing to collaborative, long-term solutions to global challenges. It is for this reason that Coca-Cola Enterprises (CCE) is proud to support the International Business Leaders Forum’s industry framework on climate change adaptation, “The Business of Adapting to Climate Change”. As well as laying out the business case for action, this report provides practical recommendations on how adaptation strategies can be incorporated into core operations, community and philanthropic endeavours and public policy engagements. At CCE, our climate strategy has so far been mainly focused on mitigation and we are making progress in reducing our emissions while growing our business. Many companies like our own have adopted a similar focus and so we look forward to using this publication as a springboard to further encourage business, governments and civil society to work together on coping with climate change. We truly believe that climate change adaptation should be viewed as an economic opportunity that advances sustainable development and encourages more green technologies, green industries and green jobs. CCE has committed to reducing the carbon footprint of ‘the drink in your hand’ by one third by 2020. To achieve this, we are adopting a value chain approach, and aim to reduce emissions from our ingredients, packaging, manufacturing, distribution and cooling equipment. To do this will require not only investing in new equipment and processes but also innovation, collaboration and partnership with our suppliers, customers and others to reduce our climate impacts across our value chain. Our goal will undoubtedly help us to work in a targeted way to reduce our climate impacts and will also help us to adapt our own operations and those of our value chain to the new low-carbon expectations of our customers, regulators and investors as well as the challenges that climate change will present. A new reality is imminent. Responding to that reality is only the first step. Businesses like ours need to help lead the way in partnership with NGOs, our communities and policymakers to actually drive change and provide innovative solutions. As you read this report, ask yourself how we as businesses can adapt together and how can we work in partnership to develop innovative solutions, now and in the future. John Brock Chairman and Chief Executive Officer, Coca-Cola Enterprises 3 Introduction Climate change is happening. Incontrovertible scientific evidence1 shows that our planet is gradually growing warmer and that the current warming trend is proceeding at an unprecedented rate. Twenty of the hottest years on record have occurred since 1987 and the ten warmest have been in the last 12 years. What’s more, many scientists are convinced that it is already too late2 to avoid further significant warming of 2-6ºC before the end of this century.3 Unlike previous cycles, the earth’s current experience of global warming is most likely induced by human activity. In theory this is good news as it means that alterations in mankind’s behaviour patterns should be able to slow and even reverse the process. This strategy – known as climate change ‘mitigation’ – has been tried, but with very limited success. Isolated advances in cutting greenhouse gas (GHG) emissions have been inadequate in the face of a powerful global trend to increased fossil fuel consumption. Following the global economic downturn in 2008-9, global GHG emissions rebounded to record levels in 2011 and even if GHG emissions were to cease immediately, the planet would continue to warm due to inertia in the climate system4. As climate change dramatically affects the natural and built environment, the resulting impacts threaten to be considerable. Not only will temperatures increase, but sea levels will rise too. A spike in undesirable weather phenomena can be expected, meaning more floods, worse droughts and more frequent, more intense storms. Impacts will be both urban and rural, affecting the rich and especially the poor, by triggering unprecedented changes to the social, political, economic and natural environments. Respected British economist Sir Nicholas Stern5 wrote: “Climate change will affect the basic elements of life… Hundreds of millions of people could suffer hunger, water shortages and coastal flooding as the world warms.” That was six years ago and his prediction is proving ever more accurate. For companies, the implications are huge. Taking water as an example, come 20306 demand for this precious resource is projected to outstrip supply by a staggering 40 percent and half the world’s population may find themselves living in areas of high water stress. The early warning signs are already in evidence - the Aral Sea now measures just one quarter of its original area. Almost every business depends, to some extent, on ready access to water for everyday activities and it is not only direct operations that will suffer from a water shortage. Water scarcity poses a pressing threat to supply chains, distribution networks and consumer markets too. It is time for the business world to face up to the new climate scenario that is unfolding. Given the severity of the risks, ‘business-as-usual’ models are no longer tenable. Companies must consider not only how to avert the situation worsening, but also how to cope with those changes already in process. They must begin to adapt to a very different natural and social environment. By taking a longer-term view and fully understanding the challenges ahead, companies can proactively manage climate-related risks. Early movers can also get ahead of the competition. A successful adaptation strategy will see companies develop innovative products and services that meet the demands of the changing natural environment as well as an evolving commercial environment. This report sets out how leading companies are starting to meet the adaptation challenge. It notes how businesses are changing their core operations to account for issues such as energy and food insecurity, water scarcity and extreme weather events. It also identifies early examples of integrating climate change adaptation into community engagement and public policy initiatives. For many companies, it remains early days for climate change adaptation. The issues are complex and the precise scenarios far from certain, but these are not sensible excuses for delay. Businesses must begin adapting - and they must begin now. 4 What is Climate Change Adaptation? Many governments, businesses and civil society organisations have sought to avoid these impacts by trying to limit the drivers that are causing the climate to change. This strategy is called ‘mitigation’. Governments have used a variety of fiscal and regulatory instruments to encourage reductions in GHG emissions across society. Some companies have responded by trying to reduce their direct emissions and increasingly their indirect or value chain emissions. Unfortunately, these efforts have been too little, too late. While it is vital that mitigation efforts increase to stave off worst-case scenarios, the deteriorating situation demands an additional response - ‘adaptation’. Companies must look at what is already happening and what might happen in the future, and take substantive steps to cope with climate change impacts that are now inevitable. From a business perspective it may be moot to make a distinction between ‘mitigation’ and ‘adaptation’. In a dynamic, interconnected economic system, one actor’s mitigation activities will be another’s adaptation. For example, government regulations related to public mitigation goals will drive companies to reduce their emissions. And there will be a knock-on effect to those companies’ suppliers who may in turn be called upon to decarbonise. From the government’s perspective, the initial regulation is mitigation, but for companies right through the value chain this is about adapting to changes in their operating environment. Arguably, for companies coping with climate change, it’s all adaptation. 5 Actual and anticipated impacts of climate change are going to trigger chain reactions that start with governments, investors and consumers and end with companies having to adapt to changing government regulations, shareholder expectations, consumer demand patterns, and supplier cost structures. For most companies the impact of changes to their operating environment will be more significant than the actual physical impacts of climate change, so even if warming temperatures or rising sea levels don’t affect them directly, companies will still be adapting to climate change. © Robert Graves and Didier Madoc-Jones http://www.postcardsfromthefuture.co.uk/ Dramatic impacts on ice caps, biodiversity and sea levels are already becoming apparent and unless GHG emissions slow radically, the negative trend will accelerate. It is often difficult to quantify exactly how and where the impacts of climate change will manifest themselves, especially in the medium and long-term. In early 2011, floods wiped out farmlands in Australia that had been parched from years of drought. Still, uncertainty is not a justification for inaction. Where climate change impacts cannot be predicted with confidence, it is appropriate for companies to hedge and focus efforts on building the general capacity of institutions and systems to adapt to climate change. At present, the world’s social, economic and environmental systems are poorly prepared. That poses a threat to all, businesses included. It is vital that such systems can cope as the planet warms. Helping them to become more climate-robust is referred to as building ‘adaptive capacity’. The IPCC7 defines ‘adaptive capacity’ as the “ability or potential of a system to respond successfully to climate variability and change, and includes adjustments in both behaviour and in resources and technologies”8. The healthcare industry provides an illustrative example. Climate change is widely expected to increase the range of vector-borne diseases, such as yellow fever and malaria, resulting in outbreaks in hitherto unaffected regions. If preparatory steps such as widespread vaccination and drug stockpiling are not taken, these outbreaks could quickly become pandemic. Similarly, investing in water infrastructure in anticipation of more frequent droughts and floods is another example. It should be noted that investments in adaptive capacity may be indistinguishable from typical development or sustainability projects, adding new impetus to such endeavours. Why is Climate Change Adaptation Important for Business? Twenty years ago, environmentalists referred to climate change as the ‘slow motion catastrophe’9. Scientists worried about the impact that gradually altering climatic conditions would have on our children and our children’s children. The latest scientific evidence suggests that the pace of change is far faster than previously feared. Changes to the planet’s ecosystems are already in evidence and look set to increase during the current generation. As the Pew Centre puts it: “The question is no longer, ‘Is there humancaused climate change?’ but ‘What can be done to react and adapt to it?’”10 Widespread predictions of changes in temperature, precipitation patterns and extreme weather events represent an increasing concern for governments. In response, adaptation is rising up the public policy agenda, as evidenced by the United Nations’ most recent summit on climate change (see box). However, early stage international adaptation agreements are only just beginning to emerge. By taking action to address adaptation now, the business community can show leadership on the issue as well as help shape future debate. A second, even more compelling argument is the impact that climate change promises to have on the business bottom line. All industries will be physically affected by climate change. As natural resources like water become scarcer, industrial processes and the cost of production will inevitably go up. Admittedly, some industries will bear the brunt more directly than others. The agricultural sector as an example of an industry on the frontline. Global warming threatens to reduce yields, expand the range of pests, exacerbate crop diseases and cause pollinator loss. Colombian coffee producers, for instance, are already reporting dramatic, record low production11 due to an average temperature increase of one degree Celsius over the last three decades12. The implications of climate change for business go beyond physical impacts on core operations and assets; the regulatory environment will also be affected. The private sector must reasonably expect more stringent controls on water usage as availability dries up. Stricter regulations on pollution could also be in the offing, as could costly mitigation initiatives such as carbon taxes. Companies could face new and costly health and safety issues for employees. Changes in customer requirements are likely too. Nor will suppliers and business partners be exempt from similar impacts, presenting additional costs and disruptions in companies’ supply chains. In anticipation of these changes, it is imperative that business begins to take the issue of adaptation seriously. International Accord: Adaptation at Durban 2011 The UNFCCC COP1713 in Durban in December 2011 significantly strengthened efforts to advance global adaptation to climate change. The Durban Platform centred largely on operationalising the Adaptation Committee, finance and technology mechanisms, Green Climate Fund, and National Adaptation Plans of the Cancun Adaptation Framework. With political will in place, Christiana Figueres, Executive Secretary of the UNFCCC, encouraged businesses and citizens to push confidently ahead in their efforts to build a climate resilient future. Companies can answer this call to action by joining the Adaptation Private Sector Initiative14, which aims to catalyse private sector contributions to and involvement in adaptation to climate change. Reflection was made back to the Cancun Adaptation Framework15, which set out to enhance adaptation efforts by all countries, although its particular focus was on the least developed nations, which were encouraged to develop and implement so-called ‘national adaptation plans’. And the Green Climate Fund, designed to support adaptation and mitigation in developing countries. UNFCCC had set a target for developed countries to mobilise $100 billion a year in public and private finance by 2020. 6 Climate Risks The importance of adapting to climate change should first be viewed in the context of risk. The key issue for companies is to determine how vulnerable their business processes and operations are to altering environmental conditions. Such assessments are not easy. The climate-related changes that a company might face are not linear, but variable and random. Current climate modelling lacks precision, particularly with respect to predicting local impacts. Such uncertainty strengthens the case for building adaptive capacity. Where impacts of a changing climate can be foreseen, appropriate responses will depend on the size, timing and projected horizon of the risks in question. In almost every case, proactive adaptation will prove less costly than reactive measures later on. The United Nations Food and Agriculture Organisation16 concurs, stating that the benefits of early adaptation will “considerably outweigh any incurred costs” - hence, the importance of early adaptation for business17. Opportunities It should be noted that climate change will not only create losers. Some winners will emerge too. The growing reality of climate change is already driving many industrialised countries to decarbonise their economies. This will require huge investments in public and private infrastructure, notably in the transportation and energy sectors. 7 New market opportunities will emerge for providers of low-carbon solutions. Renewable energy producers, train companies, electric vehicle manufacturers, smart grid providers and other green tech firms are among those set to benefit. The Global e-Sustainability Initiative18 demonstrates, through its study, SMART 202019, how the information and communications technology sector is already working together to drive forward nextgeneration, low-carbon products and services20. The biggest opportunities identified are in reducing electricity consumption through optimised motor systems and automation, through improving efficiency of transport and storage, through energy efficiency of living and work spaces and dematerialisation - replacing physical objects and activities with electronic and virtual alternatives. *Photo © iStockphoto.com Another example is the construction industry. Higher temperatures will increase demand for climate proofing materials and alternative building designs. Rising sea levels and water stress, meanwhile, may require investment in infrastructure, such as flood controls and modern irrigation techniques respectively. Certain industries will even experience risks and opportunities simultaneously. Tourism is one such example. While southern Europe may become uncomfortably hot during the summer, cooler regions in northern Europe may emerge as popular holiday destinations as temperatures increase. Opportunity-focused adaptation strategies can occur throughout the value chain, from core business operations to supply chain management or community involvement. What is crucial is that companies begin innovating now. By doing so they will gain a first-mover advantage over competitors that are slower to respond. Early action will enable businesses to pre-empt future regulation while also securing the long-term sustainability of their operations. A Framework For Corporate Action On Climate Change Adaptation The following diagram illustrates a practical framework for the private sector to materially engage in climate change adaptation solutions. The framework is structured around two key parameters: I. the generic fields of activity in which business operates or has a role to play (‘spheres of influence’), and II. the specific issue areas in which companies will encounter risks and/or opportunities as a result of climate change. Spheres of Influence IBLF identifies three principle ‘spheres’ where business can exert its influence to varying degrees. These include: core business, social investment and policy dialogue. In each separate sphere, business can leverage distinct opportunities to individually or collectively address the climate adaptation challenge. Core Business Operations and Value Chain NTERNATIONAL AL/I FR AM ION T EW NA Y T I / S N O / U C O IET MM AL R Y CO C RKETPLACE MA W E Y CHAI NS PPL SU KPLAC R O KS LO This is the sphere where companies have the highest capacity to adapt their conventional ways of doing business. Action points could include: • • • • • • • Making key infrastructure climate-resilient ‘Greening’ products and operating facilities Meeting energy challenges through new technologies Localising supply chains and improving sustainability Fostering internal eco-entrepreneurship Assessing corporate water risks Supporting technology transfer Social Investment and Philanthropic Contributions Climate change is set to impact the communities in which companies operate. Business can help them adapt to pending threats through a variety of means. Examples might include: • • • • • Supporting local conservation projects Raising community awareness of climate change threats Enhancing the adaptation capacity of local communities Investing in eco-entrepreneurs Providing cash and in-kind assistance during natural disasters Public Advocacy, Policy Dialogue and Institution Strengthening All companies operate within policy frameworks, be they local, national or international. As adaptation moves up the public policy agenda, businesses should engage productively and collectively in the debate. Some of the options open to them include: • • • • • • Participating in global dialogues, such as the UNFCCC process or the UN Global Compact Promoting a binding global treaty on climate change Supporting governments in adapting social infrastructure Backing efforts to stop illegal logging and pollution Promoting regulatory transparency Helping co-develop educational tools and curricula 8 What Business Can Do to Adapt to Climate Change Adaptation Issues Core Business Activities Social Investment and Philanthropy Policy Dialogue and Advocacy Understanding Adaptation Issues: • Adopt voluntary standards • Support local water • Understand water risks WATER • Reduce water consumption • Innovate Climate change poses threats toproducts some of and services our most basic needs, from the provision • Account for of clean water and the availability of food, regional realities to the increase of health risks, degradation of ecosystems and increasingly dangerous extreme weather events. These factors can • Anticipate health HUMAN CAPITAL contribute to social instability with disproportionate impacts of climateimpacts on rural and poor communities, especially related health disasters in the developing world. The following sections • Develop tools to track and communicate epidemiological diseases 9 on corporate water conservation use and reporting • Work collectively to • Pursue protect river basins illustrate how certain impacts of water-focused climate change can dialogue with Governments • Integrate water materially affect business’ core operations, social and civil society needs in disaster licence to operate and the regulatory environment. • Engage with government response activities Applying the spheres of influence framework to and civil society where there actual examples of privatearesector adaptation common interests activity is meant to inspire other businesses to address their • Support moves to • Support public efforts own adaptation challenges. facilitate the employment to stockpile medicines climate for pandemic diseases The adaptation issues areoflaid out migrants as follows: • Support moves to • Help bolster the prevent mistreatment capacity of disaster of ‘climate migrants’ relief organisations ENERGY • Invest in new technologies to address energy challenges • Develop new and renewable sources of energy • Locate and design facilities to cope with climate change • Assist communities in meeting future energy challenges • Support measures to secure energy access and availability • Support research into the development of alternative fuels and energy sources • Support voluntary adaptation measures • Advocate for energy policies and initiatives that consider adaptation FOOD & AGRICULTURE • Invest in droughtresistant or heattolerant crop varieties • Leverage opportunities in the value chain to enhance adaptive agriculture practices • Bring poor farmers into the procurement system • Support crop insurance for small farmers • Assist farming communities in becoming more climate resilient • Help initiatives to raise farmers’ awareness of adaptation measures • Encourage public policy dialogues on food security and climate change adaptation • Work across sectors to highlight the impact on crops, food inputs and medicinal inputs ECOSYSTEMS • Develop products that reduce impacts on ecosystems • Conduct an ecosystems impact assessment • Promote products that monetise ‘ecosystem services’ • Encourage employee and community volunteering in conservation efforts • Support research efforts into climate change impacts on natural ecosystems • Promote the development of valuation methodologies for ecosystems services • Advocate for better corporate ecosystems management • Create voluntary standards on ecosystem services evaluation EXTREME WEATHER EVENTS • Ensure physical assets are disaster-proof • Develop products that account for the impacts of climate disasters • Support initiatives to improve disaster forecasting and warning systems • Promote employee capacity to respond to weather-related disasters • Encourage crosssectoral collaboration on disaster preparedness Water HOW CAN BUSINESS ADAPT? Many of the planet’s most urgent crises – and most promising solutions – are tied to a single substance: water. Access to clean water is a critical component of economic empowerment, food security, public health, and even political stability. Yet a global water crisis is already underway. Businesses must anticipate greater incidence of flooding and sudden drought as climate change progresses. Changes to temperature and precipitation patterns also threaten a reduction in water availability. By 2025, it is predicted that two-thirds of the world population could be under so-called ‘water stress’ conditions21. It has been said that climate change mitigation is about carbon, but adaptation is about water. Businesses with operations in regions that are currently, or soon to be, water stressed must adapt. The most obvious response is for them to reduce their ‘water footprint’, either by using fewer water inputs or by improving wastewater management. Innovations in the value chain must also be considered. Reducing water use in their products’ lifecycle is one such example. As competition for water increases, companies must also take measures to justify their ‘social licence’ to use this dwindling resource. This is particularly true for heavy water users, such as mining companies and power generators. In such cases, corporate social investment activities and policy advocacy activities will be critical. Specific opportunities for business to engage on the issue of water security could include: Core Business Activities (1) Understand water risks – all corporations should assess their corporate water use and their water-related risks. This provides a solid baseline on which to develop an effective water strategy. Source Water Vulnerability Assessments22: in line with its 2020 water stewardship targets, Coca-Cola Enterprises (CCE) conducted source water vulnerability assessments for all its production facilities. The local studies examined the likelihood of the company’s current water sources being affected by future quality and scarcity issues. CCE consequently developed protection plans to reduce water pollution risks and to minimise the impact of its equipment and water use on local ecosystems for each site. (2) Reduce water consumption – a combination of abundant supply and economical rates have historically made water consumption a low priority. In the future, companies must consider ways to maintain output with less water. Minimising water use23: Scandinavian retailer IKEA uses a printing technique for its textile products that requires three-fifths less water than traditional printing. It has also fitted all taps with aerators that limit water pressure and add air to the water flow, reducing total water use by around a third. (3) Innovate products and services - examples of existing technological innovations to increase water efficiency include desalination, wastewater treatment and reverse osmosis. Water purification24: Siemens Water Technologies has developed a portable waterpurification system that does not require electric power or purification chemicals. The SkyHydrant system is subsequently low-cost (less than 20 Euro cents per person per year) and therefore affordable for very poor communities. “59% of respondent companies report exposure to water-related risk and over one third have already suffered recent water-related business impacts, with associated financial costs as high as US$200 million” CDP Water Disclosure 2011 Global Report25 10 (4) Account for regional realities – climate change will affect water patterns differently in different geographies. Low-lying coastal regions will be subject to increased floods, whereas water scarce areas will see the likelihood of drought increase. Rainwater harvesting26: food and beverage company Cadbury Schweppes installed a rainwater harvesting system to service the cooling towers at its plant near Melbourne, Australia. The project saves an estimated 7.5 million litres of potable water per year. Social Investment and philanthropy (1) Support local water conservation - water is a give-and-take affair when it comes to community perceptions. A direct correlation is generally expected between how much water a company consumes and its conservation efforts. Promoting volunteerism27: UK utility Anglian Water established a volunteer programme for community residents aimed at cleaning up local waterways. Run in conjunction with the charity Keep Britain Tidy, the RiverCare initiative counts more than 1,000 regular volunteers in almost 50 separate groups. (2) Work collectively across industry water-related challenges are local, national and international in scope. For business to make a difference beyond their immediate operations, a collaborative approach is needed. Protecting Bogota’s river basin28: SABMiller’s Colombian business, Bavaria, is working with local charity and utility partners to protect a river basin that provides water to Bogota city. The basin is “The global public has become increasingly aware how climate change and water scarcity threaten the populations of heavily settled parts of the world. They understand how it breeds conflict. They know how man-made climate change and growing consumption of water are putting unprecedented stress on this dwindling resource.” UN Secretary General, Ban Ki-moon, 2011 being seriously deforested, resulting in excessive sediment and therefore higher purification costs. Promoting Collective Action29: The Water Action Hub is a project of the UN Global Compact’s CEO Water Mandate initiative supported by Deloitte, The Coca-Cola Company, SABMiller, Veolia, Reed Elsevier, GIZ and IBLF. It is an online tool being developed to bring water stakeholders with shared interests in improving water management together on location specific basis. (3) Integrate water needs into disaster response activities – the lack of drinking water in the immediate wake of natural disasters can acerbate the plight of victims. Water-related assistance30: the GE Foundation provides solar-powered water purification units to the victims of natural disasters, such as the Haiti earthquake in 2010. 11 Image courtesy of OECD Image courtesy of Allianz Policy Dialogue and Advocacy (1) Adopt voluntary standards on corporate water use and reporting - voluntary standards motivate companies to proactively improve their water stewardship, possibly pre-empting regulation, but if not, preparing for it. Disclosing water risks and strategies31: Anglo American, Allianz Group, BP, HSBC Holdings and Standard Chartered are among the 170 large corporations cooperating with the Water Disclosure Project. Sponsored by Deloitte, and run by the pro-transparency Carbon Disclosure Project, the programme provides critical waterrelated data to the world’s investment community. (2) Pursue water-focused dialogue with Governments and civil society – cross-sector co-operation has a strong track record in enhancing water and sanitation provision in poor communities. Ghana, Kenya, Nigeria and South Africa. The discussions centred on the private sector’s role in supporting responsible public water policy. Work is now underway to establish sustainable water stakeholder networks in these markets to foster ongoing cross-sector dialogue. (3) Engage with government and civil society where there are common interests – the widespread privatisation of water services places an extra responsibility on business to contribute to water-related solutions. South Durban Basin Tri-Sector Partnership33: South African water utility NCWSC is supporting an environmental alliance aimed at protecting the South Durban Basin, a biodiversity-rich coastal dune system. The cross-sector partnership addresses a variety of water quality issues. Encourage cross-sectoral dialogue32: in 2010, beverage company Diageo partnered with IBLF to launch a series of business roundtables in five African countries: Cameroon, 12 Human Capital HOW CAN BUSINESS ADAPT? The physical health and general wellbeing of the world’s population is critical to sustaining levels of human (i.e. economic, social and cultural) capital and, by extension, business productivity. In some instances, the effects of climate change will be direct and dramatic, such as heat waves, floods or large-scale migration. Other impacts on human capital promise to be indirect. A jump in infectious diseases and psychological disorders provide two cases in point. It is important to note that climate change is set to disproportionately affect developing countries (where human capital levels are already low). As a direct result of global warming, incomes in sub-Saharan Africa34 could drop by up to one quarter (23.5%)35. It should also be recognised that climate change is not gender neutral. Women, particularly in developing countries, are more vulnerable36 to climate impacts due to prevailing social inequalities that limit their adaptive capacity and because women are more dependent upon the sectors that will be hardest hit by climate change37. Coping with issues related to human capital will, for the most part, require a focus on building adaptive capacity. While a wide range of possible interventions exists, companies have so far been slow to act. The examples illustrate where businesses are taking some initial steps: Core Business Activities (1) Anticipate health requirements during climate-related health disasters – companies must ensure employees are cared for in the wake of increasing infectious diseases or natural disasters. Employee sensitisation38: Indian construction firm HCC provides employees with basic lifesaving skills, equipping them to act as ‘first responders’ in the event of extreme weather events. It also runs a seven-day workshop to equip its engineers with advanced emergency response skills. 13 (2) Develop tools to track and communicate epidemiological diseases – warmer temperatures allow microbes to exploit the world’s intricately balanced ecological systems, potentially increasing the lifespan of pathogens as well as expanding the range of their carriers. The UK will continue to be vulnerable to severe weather with some risks having the potential to become more significant over the next 2030 years, such as increases in summer mortality due to heatwaves and prevalence of some pests and invasive nonnative species. The UK Climate Change Risk Assessment 2012 Evidence Report39, January 2012 RBM toolbox40: the business-led Roll Back Malaria programme cites more than a dozen tools for monitoring and evaluating the spread of malaria. The tools, which are available online, form part of a collective effort to capture and disseminate proven best practices. Social Investment and Philanthropy (1) Support public efforts to stockpile medicines for pandemic diseases – companies can contribute financially or through drug donations to public efforts to build up medical stockpiles. Stockpiling yellow fever medicine41: pharmaceutical firm Sanofi Pasteur provides its multi-dose vaccine against yellow fever to UNICEF and to government-organised emergency stockpiles. (2) Help bolster the capacity of disaster relief organisations – technological know-how can drive crucial efficiencies in relief operations. Google Crisis Response portal42: via a dedicated website, search engine Google helps relief agencies gain access to updated maps and satellite images during crisis situations. In a similar vein, it launched an online service to facilitate information sharing about missing persons after Japan’s 2011 tsunami that will also be useful in the aftermath of extreme weather events. Policy Dialogue and Advocacy (1) Support moves to facilitate the employment of climate migrants – for migration policies to be sustainable, they must envision providing jobs for those forced from their homes due to the effects of climate change. Direct dialogue with politicians43: French transport and power company Alstom hosted a visit by the Swedish minister for migration at its Norrköping facility in Sweden. The visit came prior to an important Parliamentary bill aimed at liberalising labour laws for migrants. Image courtesy of Sanofi Pasteur (2) Support moves to prevent mistreatment of ‘climate migrants’ – according to the Environmental Justice Foundation, there may already be as many as 26 million refugees displaced as a direct result of climate change. It is estimated that by 2050 that number will rise to 150 million climate refugees worldwide44. Migrants are at risk of unfair treatment and abuse. This is particularly true for women and children. Buy Responsibly Campaign45: the UN-backed International Organisation for Migration launched a short film in 2009 to encourage consumers to question retailers and other companies about the exploitation of migrant labour in their supply chains. 14 Energy HOW CAN BUSINESS ADAPT? As with all industries that rely on substantial physical assets, the energy industry is subject to operational risks from extreme weather conditions brought on by climate change. Heat waves in Europe in 2003 and the unprecedented, record breaking temperatures in 2010, for example, caused nuclear power plants to shut down46 due to unsafe temperature levels of the facilities’ cooling reservoirs47. Likewise, a sustained drought across China has led to hydroelectric power shortages over recent years. The secondary impacts of climate change on the operating environment for energy companies must be accounted for as well. Population growth resulting from climate-induced migration will increase energy demand in some regions (and reduce it in others). Changing agricultural patterns, on the other hand, could put strain on current distribution systems or create socio-political instability in areas of energy extraction. Compared to other industries, the energy sector will be disproportionately affected by climate change regulations. This will be most notable around mandatory emissions reductions or carbon taxes. Legislative impacts, occurring as world energy demand increases, represent significant risks to business as usual, but also magnify opportunities for low-carbon energy. “The world faces the daunting combination of surging energy demand, rising greenhouse gas emissions and tightening resources. A global energy technology revolution is both necessary and achievable; but it will be a tough challenge.” 15 Nobuo Tanaka, executive director, International Energy Agency48, June 2008 The following examples highlight the need for companies in the energy sector to implement adaptation strategies: Core Business Activities (1) Invest in new technologies to address energy challenges – changing how businesses produce, store, distribute and use energy is essential in a low-carbon, resource-constrained world. Building management49: German engineering company Siemens has developed building management systems that automatically control household appliances such as air conditioners and central heating. The approach has resulted in energy reductions of up to 30 percent. (2) Develop new and renewable sources of energy – developing alternatives to fossil fuels is critical if the energy sector is to satisfy growing demand while reducing its environmental footprint. Algae-based biofuels50: US oil major ExxonMobil has struck up a partnership with biotech firm Synthetic Genomics to develop nextgeneration biofuels from photosynthetic algae. Unlike other biofuel sources, algae rely on sunlight rather than fresh water or arable land (both of which are likely to be scarce under expected climate change scenarios). (3) Locate and design facilities to cope with climate change – this requires resilience to extreme weather events, as well as preparedness for differing demand patterns due to changing consumer patterns. Flood defence51: power company EDF raised the dyke around its Le Blayais nuclear facility in France by one metre in response to the threat of floods. In addition, it constructed an ‘anti-surge’ wall on top of the extended dyke. Social Investment and Philanthropy (1) Assist communities in meeting future energy challenges – increasing reliable and affordable energy for poor communities requires decentralised energy solutions such as solar lighting, biogas and micro-hydro. Enterprise-based approach52: oil major Shell is supporting local entrepreneurs in India who are providing affordable energy services, such as solar-powered lighting in off-grid rural areas. The ‘Excelerate’ programme also offers consumer-financing solutions to enable lowincome communities to purchase modern energy products. (2) Support measures to secure energy access and availability – this requires improvements to the adaptive capacity of energy infrastructure, ensuring it becomes more robust and ‘climate smart’. Smart meters53 British Gas is running a pilot to install wireless-enabled meters in UK homes. These enable suppliers to receive real-time consumption data, while allowing residential customers to monitor their electricity use and identify power-hungry appliances. (3) Support research into the development of alternative fuels and energy sources – companies can gain significant commercial opportunities by adding their weight to publicly financed research efforts. Clean Energy Partnership (CEP)54: financed by the German government to the tune of €1.2 billion, CEP aims to develop hydrogen-powered transportation. Partners in the collaborative research initiative include energy companies Shell, Statoil and Total. Policy Dialogue and Advocacy (1) Support voluntary adaptation measures – industry bodies in the energy sector are well placed to raise the bar on adaptation by implementing standards that go above and beyond government requirements. Investors will need to spend $45 trillion by 2050 to keep pace with growing energy demand while addressing concerns over climate change International Energy Agency57 2008 carbon emissions of trucks in the United States. Their recommendation strive to reinvent the industry through lobbying for reducing the national speed limit to 65 mph for all vehicles, reducing congestion by improving highways, supporting national fuel economy standards for trucks, reducing idling and increasing fuel efficiency. (2) Advocate for energy policies and initiatives that consider adaptation – this signifies a turnaround in traditional corporate lobbying, which typically aims to weaken environmental obligations on business. Progressive corporate lobbying58: in March 2012, the Prince of Wales UK Corporate Leaders Group, whose membership includes Anglican Water Group, BAA, BT, EDF Energy, Shell International and Unilever, wrote to the UK’s Chancellor of the Exchequer, George Osborne, urging the government to support a low carbon economy and to set out a clear policy framework to encourage low carbon investment. Tougher standards55: Following major hurricanes such as Gustav in 2008 and Katrina in 2005, the American Petroleum Institute tightened its hurricane preparedness requirements for the 2011 hurricane season for all offshore structures, which must now be able to withstand winds of up to 115 mph and wave heights of 70 feet. Collective Industry-wide Initiatives56: The American Trucking Associations (ATA), comprising of 37,000 members, is committed to voluntary, collective measures aimed at further reducing the 16 Food & Agriculture HOW CAN BUSINESS ADAPT? Problems associated with producing and supplying food due to climate change will impact companies profoundly. The looming prospect of decreased crop yield, damaged infrastructure, increased workforce migration and increased commodity prices all put adaptation centre stage for agriculture-based businesses. More droughts and floods will inevitably lead to failed harvests. Without adaptive action, reduced production could cause price rises between 42% and 131% for maize, up to 78 % for rice and up to 67% for wheat by 205059. Agribusinesses and commodity traders, together with food and beverage retailers, find themselves in the frontline of adaptation. All have considerable leverage through their core competencies, community involvement and international reach to create adaptation strategies that increase food security while also adding to their bottom lines. A clear example is the development of heattolerant and increased-yield crop varieties. Such solutions promise to widen market access as well as reduce energy and water use - a classic ‘winwin’. Related risks and opportunities also face the communications, biotechnology, insurance and finance sectors, among others. Specific opportunities for business to adapt in the light of food security issues could include: Core Business Activities (1) Invest in drought-resistant or heat-tolerant crop varieties – this requires large scale research and development investments, primarily by agribusiness and biotech companies. Climate-resistant crops60: Agrichemical companies Bayer CropScience, Syngenta, BASF and Monsanto, plus brewer Anheuser-Busch are among those companies active in seed research designed to develop crops that can be grown commercially in a much less hospitable climate. (2) Leverage opportunities in the value chain to enhance adaptive agriculture practices – to be successful in the long term such practices must also be environmentally and economically sustainable. 17 Working with smallholder farmers61: The Sustainable Agriculture Initiative at Nestlé (SAIN) works with smallholder farmers to ensure the Image courtesy of Syngenta long-term supply of safe, high quality and compliant agricultural materials. Nestlé offers around $25 million in microcredit each year to small farmers to fund installations that improve the efficiency and quality of production. In total, the Swiss food company has 800 agronomists working with 600,000 smallholder farmers. Industry Collaboration62: Danone, Unilever and Nestlé have founded the Sustainable Agriculture Initiative (SAI), in part, to manage the potentially adverse impacts of agricultural practices on natural resources and environment, which may in turn affect agricultural productivity. (3) Bring poor farmers into the procurement system – inclusive business models help stimulate local economic growth, as well as securing the supply chain for agricultural and food-based companies. New business models63: UK beverage firm Diageo is integrating small farmers into its supply chain in Nigeria by teaching them how to grow a beer-friendly variety of the cereal crop, sorghum. This project has helped increase farmers’ yields by 35 to 50 percent. Diageo sources 95% of all its grain for Nigerian production from local farms. (4) Support crop insurance for small farmers – a failed harvest due to the effects of climate change can be disastrous for subsistence farmers. Guarding against disaster64: Credit Suisse, ING, MasterCard, Nike and UPS are among the corporations that help fund microfinance provider Opportunity International, which offers weatherindex crop insurance to small-scale farmers. Social Investment and Philanthropy (1) Assist farming communities in becoming more climate resilient – part of helping farmers cope with the threat of climate change involves the adoption of energy and water efficient agricultural techniques. ITC e-Choupal network65: in India, the agriculture-based conglomerate ITC has established village-based internet kiosks to inform farmers about drip irrigation techniques, hybrid seeds, timely weather information and other information designed to help them adapt and improve their production methods. The agriextension service covers over 40,000 villages and has benefited more than four million farmers. (2) Help initiatives to raise farmers’ awareness of adaptation measures – small farmers can benefit hugely from gaining knowledge about simple steps to make their production methods more ‘climate smart’. Making information available66: US agribusiness Syngenta supports training and agricultural extension services in Africa, south east Asia and Brazil that help smallholder farmers improve crop yields and income through conservation-oriented farming practices. Policy Dialogue and Advocacy (1) Encourage public policy dialogues on food security and climate change adaptation – adaptation policies, programmes and incentives will be most effective when government, business and civil society are acting in concert and small farmers benefit. Regional policy advocacy68: non-profit network FANRPAN unites a wide range of research and advocacy groups in Southern Africa with a view to raising capacity for policy analysis and policy dialogue on food security issues. It counts the Pan African Agribusiness Consortium, the Africa Seed Traders Association and the industry-funded NEPAD Business Foundation among its funding partners. (2) Work across sectors to highlight the impact on crops, food inputs and medicinal inputs – such coalitions would typically (although not exclusively) involve the agricultural, food and beverage, and pharmaceutical sectors. Voluntary roundtables69: driven by consumergoods company Unilever, a 434-member coalition of international businesses and environment groups has established the Roundtable for Sustainable Palm Oil which in turn has developed guidelines for sustainable management of palm oil. The approach is being replicated in the soya, sugar cane, and cocoa industries. Agriculture is among the most vulnerable sectors to the effects of climate change because changes in temperature and rainfall, more frequent weather extremes and the growing presence of carbon dioxide in the atmosphere have mostly negative effects on productivity. Yet the projected increase in world population during the next 40 years, which should reach 9.1 billion in 2050, calls for agriculture to significantly step up its productivity levels. FAO, “Global Action on Climate Change in Agriculture: Linkages to Food Security, Markets and Trade Policies in Developing Countries67, 2011 18 Ecosystems HOW CAN BUSINESS ADAPT? The natural environment delivers a range of so-called ‘ecosystem services’ on which businesses of all shapes and sizes depend. The world’s forests, for instance, help purify water, regulate climate and yield genetic resources. River systems, meanwhile, provide freshwater, power and recreation. Similar arguments can be made for coastal wetlands and oceans. Yet the world’s ecosystems are under threat from climate change. Natural habitats have declined more rapidly since 1950 than any other comparable time in history, according to the UN-endorsed Millennium Ecosystem Assessment70. Ecosystem services, and by extension business profitability, will be threatened as well. Local communities are also set to suffer, further impacting the operating environment for companies. Steps to adapt to the threat of degraded ecosystems could include: Core Business Activities (1) Develop products that reduce impacts on ecosystems – such impacts could occur at both the manufacturing and consumption stages. “The loss of natural capital (including ecosystems, biodiversity and natural resources) has direct and widespread negative effects on financial performance. Many companies face specific risks from disruptions of vital ecosystems through their supply chains.” Colin Melvin, CEO, Hermes Equity Ownership Services71, July 2010 19 Image courtesy of Tara Oceans Product labelling72: US retail giant Wal-Mart uses a ‘Sustainable Product Index’ to assess products’ environmental impacts, such as energy usage and material efficiency. This information is communicated to customers via an on-pack labelling system. (2) Conduct an ecosystems impact assessment – this will enable companies to ascertain the extent to which they depend on nature’s ‘free’ inputs. Biodiversity impact studies73: consumer goods company Unilever has carried out assessments in Ghana and Tanzania to determine the impact that the cultivation of Allanblackia, an oil-based crop, is having on local biodiversity. (3) Promote products that monetise ecosystem services – at present, the lack of financial value attributed to the services rendered by nature reduces the motivation to protect natural ecosystems. Rainforest bonds74: forest bonds aim to leverage the relatively predictable cash flows that sustainable forestry and forest-related activities generate. Bank of America Merrill Lynch is one of several banks considering adding such a bond to its product portfolio. Social Investment and Philanthropy (1) Encourage employee and community volunteering in conservation efforts – and then, companies would ideally use employees volunteering experiences to inform internal adaptation strategies and practices. Channelling volunteer experience75: employee volunteers from UK bank HSBC join researchers from conservation charity Earthwatch in investigating how human activity affects forest vulnerability to climate change. The volunteers are subsequently expected to implement a practical climate change project within the business. (2) Support research efforts into climate change impacts on natural ecosystems – it is still not well understood how some ecosystems will be impacted by climate change, making research a top priority. Tara Oceans76: this three-year research expedition aims to assess the impact of climate change on plankton and other micro-organisms in the world’s oceans. The multi-partner project is backed by energy company Veolia and retailer agnès b. (3) Promote the development of valuation methodologies for ecosystems services – as a new field, communication between companies and institutions from the public, NGO and academic sectors is critical. The Natural Capital Project77: is developing tools for quantifying the values of natural capital in clear, credible and practical ways. A joint venture between leading universities and environmental non-profits, it has worked with mining company Lafarge to enhance the company’s land management plans for quarry reclamation. The cost of environmental degradation could reach $28.6 trillion by 2050, representing almost a fifth (18%) of global economic output. Source: ‘The Economics of Ecosystem Services and Biodiversity Report’, or TEEB79, October 2010 precipitated a moratorium on deforestation, while also strengthening Brazil’s existing Forest Code. (2) Create voluntary standards on ecosystem services evaluation – this will assist companies to incorporate the true costs of using nature in their business operations. Navigating standards80: Rio Tinto, Syngenta and Weyerhaeuser were among thirteen international businesses to ‘road test’ a new framework designed to enhance business understanding of ecosystem services. The Corporate Ecosystems Services Review was launched by WBCSD and drew on feedback from over 125 businesses, NGOs and government agencies. Policy Advocacy and Dialogue (1) Advocate for better corporate ecosystems management – this could be achieved through policy instruments, such as financial and tax incentives for companies that incorporate ecosystem services into their business models. Tracking Deforestation78: US agribusiness Cargill has helped develop a satellite-tracking programme in Brazil that identifies where soya cultivation has led to deforestation. The initiative 20 Extreme Weather Events HOW SHOULD BUSINESS ADAPT Many climate scientists believe that as the earth becomes 2°C warmer it will face more frequent and more intense droughts, floods, heat waves and other extreme weather events. Operational interruptions, increased insurance costs and workforce displacement represent just some of the adverse business outcomes from climate-driven disasters. Potential measures by companies to adapt to weather-related disasters include: Core Business Activities (1) Ensure physical assets are disasterproofed – this may require retrofitting facilities in high-risk areas, as well as ensuring new corporate constructions are located in low-risk regions Elastocoast81: developed by Germany’s BASF, this environment-friendly flood protection system protects dykes by using elastomer polyurethane to absorb the force of breaking waves and floodwater. (2) Develop products that account for the impacts of climate disasters – helping companies and individuals adapt to disaster situations has particular application to the insurance industry. Disaster-related financial products82: insurance company Allianz boasts an innovative catastrophe bond that transfers the risk of severe river floods in the UK, as well as earthquakes in Canada and most of the US. Social Investment and Philanthropy (1) Support initiatives to improve disaster forecasting and warning systems – given their expertise in real-time communication, technology companies can play a particularly key role in this area. Disaster early warning text alerts83: Bangladeshi mobile phone operators Grameenphone and state-owned Teletalk set up a system to send text alerts warning their customers of an impending disaster. The service is available in the country’s most flood and cyclone-prone regions. 21 (2) Promote employee capacity to respond to weather-related disasters – training employees not only helps increase their safety, but also provides a ready resource to lend assistance to others in times of crisis. Training employee volunteers84 – in 2010, Cisco embarked on a global training partnership with the aid charity American Red Cross. Among other skills, Cisco volunteers learn how to provide mass care related to distribution of first aid, shelter, food and supplies. Policy Advocacy and Dialogue (1) Encourage cross-sectoral collaboration on disaster preparedness – this will ensure the most efficient use of resources, as well as leveraging the contribution of business. High-level advice85: senior business experts make up a private sector advisory group for the secretariat that oversees the UN’s International Strategy for Disaster Reduction. The eleven companies represented include DuPont, Deloitte, Cisco, Credit Suisse and Arup Group, among others. In 2011 alone, the US was hit by 14 extreme weather events, causing damages exceeding one billion dollars each. In 2010, Western Russia experienced the hottest summer in centuries, while in Pakistan and Australia there were record-breaking amounts of rainfall. Global warming can generally not be proven to cause individual extreme events, but in the sum of the events, the link to climate change becomes clear. Potsdam Institute for Climate Impact Research86, March 2012 Call to Action The business community has not been inactive in the face of climate change. Many progressive companies have taken on board the environmental and economic necessity of tackling the issue. The array of mitigation strategies now in evidence is proof of such intent. However, the focus must change. To date, both the private and public sectors have concentrated their efforts on reducing GHG emissions. They have done so in the hope of avoiding climate change. The strategy is understandable and remains vitally important. Unfortunately, too little action starting too late means that mitigation alone will no longer suffice. Companies must also adapt to the inevitable impacts of climate change. Such a strategy has been dismissed in the past as ‘defeatist’. It is not. Rather, it is a pragmatic response to a very real issue. The natural environment is set to change and all sectors of society, including and especially companies, must ready themselves to cope with that. Not taking adaptation seriously means compromising future competitiveness and sustainability. Adaptation, it should be emphasised, does not negate the need for mitigation. Both are vital responses to the threat of climate change. In practice, it is usually the same motivation that drives companies to mitigate and adapt: namely, reducing climate-related risks and increasing climate-related opportunities. Indeed, in practice, adaptation and mitigation activities often fall within the same project scope. Going forward, however, it is imperative that adaptation no longer be the ‘also ran’ option. It must be pursued at the same time and with equal vigour as mitigation efforts. Time is of the essence. The climate change clock is ticking. The established consensus among climate scientists is that temperatures will inevitably rise if there are more than 350 parts per million of carbon dioxide in the atmosphere. We are already at 39387 and the figure is trending up, not down. In short, climate change has reached a point of no return. The moment to act therefore is now. As this report illustrates, a number of pioneering companies have already embarked on adaptation measures. Most have not, however. The same is true for society at large. This lack of preparedness puts the world’s social, economic and environmental systems in danger. That poses a threat to all, businesses included. Of course, appropriate responses will differ from company to company. This problem does not have a one-size fits all solution. The impacts of climate change will not be universal. A company’s geographical location, industry type and value chain all influence how it should best adapt. Some businesses, for example, may identify climate change risks in their core operations that require immediate action. For others, the impacts may be less direct. In such cases, helping build levels of adaptive capacity in their various spheres of influence may represent a more suitable approach. Finally, adaptation demands bold communication as well as bold decision-making. Considerable conceptual confusion and political ambiguity still surround the issue. IBLF’s Spheres of Influence framework represents an attempt to bring clarity to the debate and to show companies where and how they can act. Adapting to climate change is a business imperative, but it requires forward-thinking companies to spell that out in action – companies that understand the business risks and opportunities, and are willing to tackle both head on. Clare Melford CEO, International Business Leaders Forum 22 Further Reading • Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, M.L. Parry eds, et al, Cambridge University Press, 2007. • Adapting to Climate Change: State and Outlook, The European Environmental Agency, 28 November 2010 • Adapting to the Impacts of Clhttp://www. nestle.com/Common/NestleDocuments/Documents/ Library/Documents/Corporate_Governance/Corporate- Change. America’s Choices: Panel on Adapting to the Impacts of Climate Change, National Research Council, Board of Atmospheric Sciences and Climate, National Academy Press, 2010. Adaptation Policy Frameworks for Climate Change: Developing Strategies, Policies and Measures, Lim, B. and E. Spanger-Siegfried eds, United Nations Development Programme. Technologies for climate change adaptation: emerging lessons from developing countries, Tessa, B & Kurukulasuriya P. Journal of International Affairs, New York, Fall 2010, Vol. 64, Issue 1, p. 17. Climate Change 101: Adaptation, Pew Center on Global Climate Change, January 2011. Progress Report of the Interagency Climate Change Adaptation Task Force, White House Council on Environmental Quality, October 2010. Effective Governance of Climate Change Adaptation, Rao, P.K. Rutgers University, USA, 22-23 March 2012. Harmonising Climate Risk Management: Adaptation screening and assessment tools for development co-operation, Hammill, Anne and Thomas Tanner, OECD,29 July 2011 Successful Adaptation to Climate Change Across Scales, Adger, W. N., N.W. Arnell, and E.L. Tompkins, Global Environmental Change 15(2):77-86, 2005. Uncertainty and Climate Change Adaptation: A Scoping Study, Dessai, S. and J. van der Sluijs, Utrecht: Copernicus Institute for Sustainable Development and Innovation, Department of Science Technology and Society, 2007. Business-Principles-EN.pdfimate • • • • • • • • 23 • Community-Based Adaptation: A vital approach to the threat climate change poses to the poor, Briefing Paper 17005IIED, IIED, May 2007. • Corporate Action on Climate Adaptation and Development, Jane Nelson, The Brookings Institution, 2008. • Durban Adaptation Charter for Local Governments as adopted on the 4th December 2011 of the occasion of the “Durban Local Government Convention: adapting to a changing climate” – towards COP17/ CMP7 and beyond• UK Climate Change Assessment Risk (CCRA), Defra, 25 January 2012. Relevant Links: • Adaptation (http://www.ipcc.ch/pdf/glossary/tar-ipccterms-en.pdf) versus Mitigation (http://www. ipcc.ch/pdf/glossary/tar-ipcc-terms-en.pdf) • Africa Enterprise Challenge Fund (AECF): http://www.aecfafrica.org/?goback=. gde_934207_member_80287274 • Environmental Justice Foundation: http://www.ejfoundation.org • GIZ Business Coaching “Adaptation to Climate Change”: http://www.gc21.de/ibt/en/modules/ gc21/ws-FLEXdialogue/info/ibt/acc-dis.sxhtml • Investment and Financial Flows to Address Climate Change: Technical paper: http://unfccc. int/documentation/documents/advanced_search/ items/3594.php?rec=j&priref=600004974#beg • Private Sector Initiative - Database of Actions on Adaptation: http://unfccc.int/adaptation/nairobi_ work_programme/private_sector_initiative/items/6547.php • Private Sector Initiative Fact Sheet: http://unfccc. int/files/adaptation/nairobi_work_programme/joining_the_ nwp/application/pdf/nwp_psi_facsheet_may2011.pdf • The Partnership for Resilience and Environmental Preparedness: http://oxfamamerica. org/articles/business-partnership-to-promoteresilience-and-environmental-preparedness-forms • World Bank Institute – Global Dialogue on Adaptation and Food Security: http://wbi.worldbank.org/wbi/Data/wbi/wbicms/files/ drupal-acquia/wbi/WBI%20Global%20Dialogue%20 on%20Food%20Security%20and%20Adaptation%20 -%20Summary%20of%20emerging%20issues.pdf Publications: Useful Organisations • Global Compact: Adapting for a Green Economy: Companies Communities and Climate Change: http://www.unglobalcompact. • • • • • • • • org/docs/issues_doc/Environment/climate/C4C_ Report_Adapting_for_Green_Economy.pdf • Intellecap: Opportunities for Private Sector Engagement in Urban Climate Change Resilience Building: http://unfccc.int/files/adaptation/ application/pdf/intellecap_furtherinfo_250311.pdf • International Union of Railways: Adapting Rail infrastructure to Climate Changes: http://unfccc.int/files/adaptation/application/ pdf/iuc_further_information_101110.pdf • OECD: Private Sector Engagement in Adaptation to Climate Change: http://www.oecdilibrary.org/content/workingpaper/5kg221jkf1g7-en • Oxfam America: The New Adaptation Marketplace – Climate Change and Opportunities for Green Economic Growth: http://www.oxfamamerica. org/publications/the-new-adaptation-marketplace • PwC: Business Leadership on Climate Change Adaptation: Encourage Engagement and Action: http://unfccc.int/files/adaptation/nairobi_work_programme/ partners_and_action_pledges/application/pdf/encouraging_ engagement_and_action_exec_summ_publication.pdf • • • • • • • • • • • • 350 org Adaptation Scotland Al Gore Carbon Trust Carbon War Rooms Care Climate Change Centre for International Forestry Research CERES/Business for Innovative Climate and Energy Policy Climate & Development Knowledge Network Conservation International Defra Energy Networks Association Environment Agency The Climate Group The Nature Conservancy United Kingdom Climate Impacts Programme (UKCIP) United Nations Development Programme World Resources Institute World Wildlife Fund, World Wildlife Fund United Nations Framework Convention on Climate Change (Nairobi Working Group: Adaptation Private Sector Initiative) 24 Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 25 National Aeronautics and Space Administration: Global Climate Change: http://climate.nasa.gov/keyIndicators/ US Government Info: http://usgovinfo.about.com/od/ technologyandresearch/a/climatetochange.htm NCAR Research: http://usgovinfo.about.com/od/ technologyandresearch/a/climatetochange.htm IPCC: http://www.ipcc.ch/publications_and_data/ publications_and_data_reports.shtml Stern Report: http://webarchive.nationalarchives.gov.uk/+/ http:/www.hm-treasury.gov.uk/sternreview_index.htm McKinsey: http://www.mckinsey.com/clientservice/ water/charting_our_water_future.aspx IPCC: http://www.ipcc.ch/publications_and_data/ publications_and_data_reports.shtml IPCC: http://www.ipcc.ch/publications_and_data/ publications_and_data_reports.shtml David Suzuki: http://know.climateofconcern.org/index. php?option=com_content&task=article&id=137 Pew Centre: http://www.pewclimate.org/ docUploads/Business-Adaptation.pdf Yahoo Finance News: http://finance.yahoo.com/news/ Colombia-Coffee-Yield-Record-zacks-917103599.html New York Times: http://www.nytimes.com/2011/03/10/ science/earth/10coffee.html?_r=2 UNFCCC COP17: http://www.cop17-cmp7durban.com/ Adaptation Private Sector Initiative: http:// unfccc.int/adaptation/nairobi_work_programme/ private_sector_initiative/items/4623.php Cancun Adaptation Framework: http://unfccc.int/adaptation/ cancun_adaptation_framework/items/5852.php FAO: http://www.fao.org/docrep/012/i1323e/i1323e00.htm FAO: Profile for Climate Change: ftp://ftp.fao. org/docrep/fao/012/i1323e/i1323e00.pdf GeSI: http://www.fao.org/docrep/012/i1323e/i1323e00.htm GeSI Publication: http://www.gesi.org/LinkClick.as px?fileticket=7X8GQ7HNR%2bg%3d&tabid=71 GeSI: http://www.gesi.org/ FAO Water Unit: www.fao.org/nr/water/issues/scarcity.html http://www.thecoca-colacompany.com/ citizenship/water_main.html http://www.ikea.com.kw/en/the-never-ending-story-list.html http://www.siemens.com/press/en/presspicture/ index.php?type=2&tag=pn&view=special CDP Water Disclosure 2011 Global Report: https://www.cdproject.net/CDPResults/CDPWater-Disclosure-Global-Report-2011.pdf https://www.citywestwater.com.au/documents/Cadbury_ Schweppes_-_Rainwater_Harvesting_Case_Study.pdf http://www.anglianwater.co.uk/ environment/our-projects/rivercare/ 28. http://www.sabmiller.com/index. asp?pageid=917&year=2009 29. http://ceowatermandate.org/ 30. http://www.ge.com/foundation/disaster_relief/index.jsp 31. https://www.cdproject.net/water 32. http://water-a-business-imperative.ning.com/ 33. http://www.earthplatform.com/south/durban/basin 34. World Bank: http://web.worldbank.org/WBSITE/EXTERNAL/ COUNTRIES/AFRICAEXT/0,,contentMDK:21772010~pag ePK:146736~piPK:146830~theSitePK:258644,00.html 35. Rehdanz and Maddison (2005), p.31: pubs. aeaweb.org/doi/pdfplus/10.1257/jep.23.2.29 36. Disaster Watch: http://www.disasterwatch. net/climatechange/gndr_climt07.pdf 37. Integrated Research and Action for Development: http:// www.disasterwatch.net/climatechange/gndr_climt07.pdf 38. HCC Infrastructure: http://www. hccinfrastructure.com/csr/csr_drn.aspx 39. UK Climate Change Risk Assessment 2012 Evidence Report: http://www.gripweb.org/gripweb/ sites/default/files/documents_publications/ The%20UK%20Climate%20Change%20Risk%20 Assessment%202012%20Evidence%20Report.pdf 40. Roll Back Malaria: http://www.rollbackmalaria. org/toolbox/index.html 41. http://en.sanofi.com/Images/14167_080226_ FIEVRE_JAUNE_AMERIQUE_LATINE_pdf.pdf 42. Google Crisis Response: http://www. google.org/crisisresponse/ 43. Alstom: http://www.alstom.com/press-centre/2007/12/ Tobias-Billstrom-Minister-for-Migration-visitedAlstom-at-Norrkoping-20071204/ 44. http://www.ejfoundation.org/page563.html 45. Buy Responsibly Campaign: http://www.buyresponsibly.org/ 46. Simple Climate Worldpress: https://simpleclimate. wordpress.com/2011/03/19/2010s-europeanheatwave-unmatched-in-centuries/ 47. Reuters: http://af.reuters.com/article/ energyOilNews/idAFLDE6670U420100708 48. p. 16 International Energy Agency: http://www.iea.org/ 49. Siemens: http://www.siemens.com/ innovation/en/publikationen/publications_pof/ pof_fall_2008/gebaeude/umwelt.htm 50. ExxonMobil: http://www.exxonmobil.com/ Corporate/energy_vehicle_algae.aspx 51. York Academia: http://york.academia.edu/NatalieKopytko/ Papers/409827/Climate_change_nuclear_power_ and_the_adaptation-mitigation_dilemma 52. Shell Foundation: http://www.shellfoundation.org/pages/ core_lines.php?p=corelines_content&page=excelerate 53. 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