A General Approach for Financial Quantification of Climate Change Risk for Enterprises

2022 ◽  
pp. 273-308
Author(s):  
Mahesh Gangaram Kanak ◽  
Sunita Purushottam
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Task Force ◽  
Manufacturing Sector ◽  
Climate Change Risk ◽  
Climate Action ◽  
Financial Disclosures ◽  
Development Goals ◽  
Climatic Impacts ◽  
Tackle Climate Change

Climate change is a major risk for the global economy. Increased frequency of climatic events coupled with unsustainable economic development without considering environmental & social aspects has resulted in runaway climatic impacts. It became evident for all stakeholders to work in unison; which led to formation of Task force on climate-related financial disclosures (TCFD). Financial quantification of climate risk is a new area to be explored & could be an effective measure to tackle climate change. This chapter provides a general approach for financial quantification of climate change risk for businesses to understand & prioritize climate action. Though the approach is limited to the manufacturing sector, it can be used with some modifications for other sectors. It will help find impacts that climate change could pose to supply chain using various tools & evaluation of its usefulness. As 'Climate Action' is part of Sustainable Development Goals; it will be useful to understand how integrating TCFD could help enterprises tackle climate change by localizing SDG-13 into their businesses.

A General Approach for Financial Quantification of Climate Change Risk for Enterprises

2020 ◽  
pp. 105-146
Author(s):  
Mahesh Gangaram Kanak ◽  
Sunita Purushottam
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Task Force ◽  
Manufacturing Sector ◽  
Climate Change Risk ◽  
Climate Action ◽  
Financial Disclosures ◽  
Development Goals ◽  
Climatic Impacts ◽  
Tackle Climate Change

Climate change is a major risk for the global economy. Increased frequency of climatic events coupled with unsustainable economic development without considering environmental & social aspects has resulted in runaway climatic impacts. It became evident for all stakeholders to work in unison; which led to formation of Task force on climate-related financial disclosures (TCFD). Financial quantification of climate risk is a new area to be explored & could be an effective measure to tackle climate change. This chapter provides a general approach for financial quantification of climate change risk for businesses to understand & prioritize climate action. Though the approach is limited to the manufacturing sector, it can be used with some modifications for other sectors. It will help find impacts that climate change could pose to supply chain using various tools & evaluation of its usefulness. As 'Climate Action' is part of Sustainable Development Goals; it will be useful to understand how integrating TCFD could help enterprises tackle climate change by localizing SDG-13 into their businesses.

A General Approach for Financial Quantification of Climate Change Risk for Enterprises

2022 ◽  
pp. 966-1002
Author(s):  
Mahesh Gangaram Kanak ◽  
Sunita Purushottam
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Task Force ◽  
Manufacturing Sector ◽  
Climate Change Risk ◽  
Climate Action ◽  
Financial Disclosures ◽  
Development Goals ◽  
Climatic Impacts ◽  
Tackle Climate Change

Climate change is a major risk for the global economy. Increased frequency of climatic events coupled with unsustainable economic development without considering environmental & social aspects has resulted in runaway climatic impacts. It became evident for all stakeholders to work in unison; which led to formation of Task force on climate-related financial disclosures (TCFD). Financial quantification of climate risk is a new area to be explored & could be an effective measure to tackle climate change. This chapter provides a general approach for financial quantification of climate change risk for businesses to understand & prioritize climate action. Though the approach is limited to the manufacturing sector, it can be used with some modifications for other sectors. It will help find impacts that climate change could pose to supply chain using various tools & evaluation of its usefulness. As 'Climate Action' is part of Sustainable Development Goals; it will be useful to understand how integrating TCFD could help enterprises tackle climate change by localizing SDG-13 into their businesses.

scholarly journals Trade, Climate and Energy: A New Study on Climate Action through Free Trade Agreements

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4363
Author(s):  
Christopher M. Dent
Keyword(s):  
Climate Change ◽  
Free Trade ◽  
Global Economy ◽  
International Political Economy ◽  
Positive Impact ◽  
Free Trade Agreements ◽  
Primary Source ◽  
Trade Agreements ◽  
Climate Action ◽  
Trade Partners

Efforts to tackle climate change are taking place on multiple fronts. This includes trade, an increasingly important defining feature of the global economy. In recent years, free trade agreements (FTAs) have become the primary mechanism of trade policy and diplomacy. This study examines the development of climate action measures in FTAs and discusses what difference they can make to tackling climate change. Its primary source research is based on an in-depth examination of FTAs in force up to 2020. This paper is structured around a number of research questions forming around three main inter-related areas of enquiry. Firstly, to what extent are these provisions in FTAs essentially derivative of energy’s connections with climate change, and thus part of a wider trade–climate–energy nexus? Secondly, what kinds of climate action are FTAs specifically promoting, and how effective a potential positive impact may we expect these to have? Thirdly, are certain climate action norms being promoted by trade partners in FTAs and if so, then who are the norm leaders, what is motivating them, and to what extent are they extending their influence over other trade partners? In addressing these questions, this study offers new insights and analysis regarding a potentially important emerging trend in the trade–climate–energy nexus. Its international political economy approach and latest empirical research also provide a further distinctive contribution to knowledge in this inter-disciplinary area, developing new comprehensions of the relationship between trade, climate action and energy.

scholarly journals Targeting adaptation to safeguard sustainable development against climate-change impacts

2021 ◽  
Author(s):  
Lena Fuldauer ◽  
Scott Thacker ◽  
Robyn Haggis ◽  
Francesco Fuso Nerini ◽  
Robert Nicholls ◽  
...  
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Climate Change Impacts ◽  
Economic Sectors ◽  
Global Priority ◽  
Climate Action ◽  
Development Goals ◽  
Systems Framework ◽  
The Relationship

Abstract The international community has committed to achieve 17 Sustainable Development Goals (SDGs) by 2030 and to enhance climate action under the Paris Agreement. Yet achievement of the SDGs is already threatened by climate-change impacts. Here we show that further adaptation this decade is urgently required to safeguard 68% of SDG targets against acute and chronic threats from climate change. We analyse how the relationship between SDG targets and climate-change impacts is mediated by ecosystems and socio-economic sectors, which provides a framework for targeting adaptation. Adaptation of wetlands, rivers, cropland, construction, water, electricity and housing in the most vulnerable countries should be a global priority to safeguard sustainable development by 2030. We have applied our systems framework at the national scale in Saint Lucia and Ghana, which is helping to align National Adaptation Plans with the SDGs, thus ensuring that adaptation is contributing to, rather than detracting from, sustainable development.

scholarly journals Bridging Gaps: Connecting Climate Change Risk Assessments with Disaster Risk Reduction and Climate Change Adaptation Agendas

2021 ◽  
pp. 65-80
Author(s):  
Shona K. Paterson ◽  
Kristen Guida
Keyword(s):  
Climate Change ◽  
Risk Reduction ◽  
Ecosystem Functioning ◽  
Disaster Risk Reduction ◽  
Climate Adaptation ◽  
Disaster Risk ◽  
Risk Assessments ◽  
Climate Change Risk ◽  
Climate Action ◽  
Climate Adaptation Planning

AbstractChanging climates and increasing variability, in combination with maladaptive societal responses, present many threats and risks to both social and biophysical systems. The outcomes of such changes will progressively affect all aspects of ecosystem functioning including social, political, and economic landscapes. Coordination between the three frameworks that govern risk at national and subnational scales, climate change risk assessments, climate adaptation planning and disaster risk reduction (DRR), is often lacking or limited. This has resulted in a siloed and fragmented approach to climate action. By examining risk as a dynamic social construction that is reimagined and reinvented by society over time, this chapter explores how a greater degree of cohesion between these three frameworks might be achieved.

The Gulf will lag on climate action, despite exposure

2020 ◽  
Keyword(s):  
Climate Change ◽  
Clean Energy ◽  
Content Type ◽  
High Profile ◽  
Oil Revenue ◽  
Climate Action ◽  
Gulf States ◽  
Summer Temperatures ◽  
Tackle Climate Change ◽  
Combat Climate Change

Significance On the same day, opening speakers in a high-profile forum in Abu Dhabi highlighted the emirate’s commitment to renewable energy. Despite the rhetoric and their own vulnerability, however, the Gulf Cooperation Council (GCC) countries are lagging behind global efforts to tackle climate change and remain heavily dependent on oil revenue. Impacts Forecast rises in summer temperatures will deter foreign investment and expatriate workers in future. A collapse in oil prices would cut the funding available to develop clean energy. Failure to stem wasteful hydrocarbons energy consumption will make it harder for renewables to compete. Gulf states’ populations will be largely disengaged from global efforts to combat climate change.

scholarly journals Managing climate change risk: the case of the Italian Churches

2020 ◽  
Author(s):  
Donatella Porrini ◽  
Francesco De Masi
Keyword(s):  
Climate Change ◽  
Cultural Heritage ◽  
Private Insurance ◽  
Climate Change Risk ◽  
A Value ◽  
Climate Action ◽  
Managing Risk ◽  
Double Track ◽  
Climate Events

AbstractIn a world of increasing and worse and worse climate events, there is an urgent need to find how to manage the climate change risk and make cultural heritage more resilient. Given the relevant threat represented by climate-related events, this paper aims to analyze the role of insurance in safeguarding cultural heritage from natural disasters. The focus is on Italian Churches seen as a particular case of study. Taking into consideration the characteristics of the managing risk strategy, we use a value-belief-norm approach and a decision tree analysis to evaluate the efficiency of the governance scheme adopted. In the case examined of the Italian Churches, the strategy is mainly based on a private insurance contract characterized by a double track, local and national, to reach the important goal of the full coverage of all churches. We conclude that cultural heritage can drive climate action and the originality of the Italian Churches strategy can represent a benchmark in this field.

scholarly journals Briefing: task force for climate financial disclosures (TCFD) for the property and construction industry

2020 ◽  
Vol 5 ◽  
pp. 3 ◽  
Author(s):  
Renard Siew
Keyword(s):  
Climate Change ◽  
Data Collection ◽  
Best Practices ◽  
Construction Industry ◽  
Task Force ◽  
Direct Response ◽  
Main Contributor ◽  
Climate Risks ◽  
Financial Disclosures

The property and construction industry are known to be a main contributor to climate change contributing more than 40% of the world's emissions. In direct response to this, there has been a call for corporations to be more transparent and align themselves to the requirements of the task force for climate financial disclosures (TCFD). This paper seeks to provide a briefing on the requirements of the TCFD. It highlights common challenges faced by the property and construction industry in implementing TCFD such as the difficulty in integrating climate related risks and translating them into quantitative measures, lack of capability within the industry to understand the complexities of climate risks and data collection issues among others. Recommendations are proposed to address these issues including setting up an industry specific network to share best practices in TCFD, harmonisation of existing frameworks to include TCFD requirements and exploring opportunities for incentivisation and rewards for early movers. This paper will be useful to property and construction industry practitioners who are looking at aligning to the requirements of the TCFD.

scholarly journals The future of climate policymaking in light of Urgenda Foundation v the Netherlands

2020 ◽  
Vol 22 (2) ◽  
pp. 119-124
Author(s):  
Irene Antonopoulos
Keyword(s):  
Climate Change ◽  
Human Rights ◽  
The Netherlands ◽  
Supreme Court ◽  
European Convention ◽  
Climate Action ◽  
State Obligations ◽  
Tackle Climate Change ◽  
Definition Of ◽  
Dutch Supreme

The decision of the Dutch Supreme Court in The State of the Netherlands v Urgenda Foundation represents a breakthrough and a step forward in addressing the human rights aspects of climate change. The significance of the case has been recognised by commentators and the UN Human Rights Commissioner, who asked for a repeat of Urgenda’s journey in other jurisdictions. Despite the implication that other states have similar obligations to those construed by the Dutch Supreme Court, the influence of the case in other jurisdictions is yet to be seen. This article recognises the significance of the Urgenda case to the definition of state obligations to reduce their greenhouse gas emissions as part of their commitments under the European Convention on Human Rights. In particular, the article discusses the progress made in interpreting Articles 2 and 8 of the European Convention on Human Rights in clarifying state obligations to take decisive measures to tackle climate change in line with their climate action commitments.

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