As climate change impacts worsen, the need for solutions to support adaptation grows. Founder & CEO, Emilie Mazzacurati, joined Molly Wood on Marketplace Tech to discuss climate risk analytics. The conversation covers the importance of understanding climate risk exposure and how companies leverage climate data to prepare for climate hazards. While recent findings on sea level rise and other climate impacts can be daunting, there is hope for adaptation that builds resilience across sectors.
For more on climate risk and resilience in the private sector, explore our climate risk analytics and read our reports on Climate Risk in Real Estate and Engaging with Corporates to Build Adaptive Capacity.
Do bond ratings reflect governments’ and businesses’ exposure to physical climate change? Founder & CEO, Emilie Mazzacurati, joins the Bond Buyer’s Chip Barnett to discuss physical climate risk for investors, businesses and governments. Emilie describes the financial sector’s growing awareness of material climate risk in their bond and equity portfolios and shares efforts being taken to understand and address these risk. Chip and Emilie also discuss the challenges cities face when striving to adapt to climate impacts, the benefits of building resilience and the interactions between corporate and community resilience.
For more insight on the interactions between climate change, cities and financial risk read our reports on Assessing Exposure to Climate Risk in U.S. Munis and Assessing Local Adaptive Capacity to Understand Corporate and Financial Climate Risks, or listen to our webinar on Building City-level Climate Resilience.
FEBRUARY 19, 2019 – SAN DIEGO, CALIFORNIA – Four Twenty Seven receives Climate Change Business Journal Awards for three climate change risk and resilience projects.
The Climate Change Business Journal (CCBJ) released its 10th annual CCBJ Business Achievement Awards, recognizing outstanding business performance in the climate change industry. CCBJ assesses markets and business opportunities across the emerging climate change industry and acknowledged Four Twenty Seven’s contributions to this field through our global dataset on climate risk in real estate, the development of the California Heat Assessment Tool and our contribution to the EBRD-GCECA initiative on Advancing TCFD Guidance on Physical Climate Risks and Opportunities.
Four Twenty Seven and GeoPhy earned the Technology Merit: Climate Change Risk Modeling and Assessment award for releasing the first global dataset on climate risk exposure in real estate investment trusts (REITs). REITs represent an increasingly important asset class that provides investors with a vehicle for gaining exposure to real estate portfolios. However, real estate is also increasingly affected by risks from climate change. Four Twenty Seven applied its scoring model of asset-level climate risk exposure to GeoPhy’s database of listed REITs holdings to create the first global, scientific assessment of REITs’ exposure to climate risk.
The California Heat Assessment Tool (CHAT) earned the Project Merit: Climate Change Adaptation and Resilience award for its innovative approach to helping public health officials, health professionals and residents understand what changing heat wave conditions mean for them, through a free online platform. CHAT is part of California’s Fourth Climate Change Assessment, a state-mandated research program to assess climate change impacts in California, and was developed by Four Twenty Seven, Argos Analytics, the Public Health Institute and Habitat 7 with technical support from the California Department of Public Health.
The European Bank for Reconstruction and Development and the Global Centre of Excellence on Climate Adaptation initiative on Advancing the TCFD Recommendations on Physical Climate Risks and Opportunities earned the Advancing Best Practices: Climate Change Adaptation and Resilience award. This project culminated in a conference and report building on Taskforce on Climate-related Financial Disclosure (TCFD) recommendations and providing common foundations for the disclosure of climate-related physical risks and opportunities. It identifies where further research or market action is needed so that detailed, consistent, industry-specific guidelines can be developed on the methodology for quantifying and reporting these risks and opportunities. Four Twenty Seven and Acclimatise provided the technical secretariat that led the working groups and authored the report.
January 15, 2019 – 427 REPORT. Building resilient communities and financial systems requires an understanding of climate risk exposure, but also of how prepared communities are to manage that risk. Understanding the adaptive capacity, or ability to prepare for change and leverage opportunities, of the surrounding area can help businesses and investors determine how exposure to climate risk is likely to impact their assets and what the most strategic responses may be. This report outlines Four Twenty Seven’s framework for creating location-specific actionable assessments of adaptive capacity to inform business and investment decisions and catalyze resilience-building.
Every investment, from real assets to corporate initiatives, is inextricably connected to its surrounding community. From flooded or damaged public infrastructure hindering employee and customer commutes to competition for water resources threatening business operations and urban heat reducing public health, the impacts of climate change on a community will impact the businesses and real estate investors based in that community. Thus, evaluating how acute and chronic physical climate hazards will affect local communities and communities’ responses enables investors and corporations to assess the full extent of the risks they face.
This report, Assessing Local Adaptive Capacity to Understand Corporate and Financial Climate Risks, outlines Four Twenty Seven’s framework for capturing a city’s adaptive capacity in a way that’s actionable for corporations seeking to understand the risk and resilience of their own facilities and for investors assessing risk in their portfolios or screening potential investments. The framework focuses on three main pillars: 1) awareness, 2) economic and financial characteristics, and 3) the quality of adaptation planning and implementation. It is informed by social sciences research, recent work by credit rating agencies, and our experience working directly with cities and investors.
While a city’s adaptive capacity plays a key role in determining whether or not exposure to climate hazards will lead to damage and loss, cities are also likely to find that their resilience to climate impacts is an increasingly important factor in attracting business and financing, as adaptive capacity is more frequently integrated into credit ratings and screening processes. It is valuable for both cities to understand how investors are interpreting adaptive capacity and for investors to understand which factors of local adaptive capacity translate into increased resilience and reduced financial loss for their assets.
The Resilience Shift has announced that Four Twenty Seven will develop a primer on best-practices and opportunities for building climate resilience in the shipping sector. The Resilience Shift fosters global infrastructure resilience through projects, investments and events. Four Twenty Seven will support this effort by engaging with key stakeholders in the shipping sector to create industry-specific guidance on resilience strategies. Read the press release from the Resilience Shift:
The Resilience Shift today announces the appointment of a new grantee, Four Twenty Seven, for its programme to improve the resilience of critical infrastructure.
The team at Four Twenty Seven, led by Dr. Yoon Kim, has been commissioned to develop an industry-specific primer focused on the Shipping Sector that will help key players understand actionable ways to improve their resilience to climate change.
The shipping of material goods is critical to industries and livelihoods around the world. With stakeholders including shipping companies, terminal operators, and ports, this sector is exposed to extreme shocks or stresses in every country and disruptions have a direct impact on the safety and well-being of millions of people.
In developing this practical, industry specific primer, Four Twenty Seven and the Resilience Shift will identify 1) current best practices by leading organisations that embed resilience into their decision-making, 2) incentives that are available for driving resilience, but are not capitalised upon, and 3) approaches to scale and augment the menu of incentives over time.
Ultimately, the vision of the Resilience Shift is a more resilient world which understands the interconnected nature of modern life and the services on which we all depend.
The Resilience Shift believes that greater resilience across the shipping sector is an achievable goal and that knowledge sharing around key incentives and levers can shift major stakeholders towards adopting more resilient practices and technologies.
The Resilience Shift will be supporting the team at Four Twenty Seven in this effort and will be sharing their findings by publishing a resilience primer in 2019.
Other grantees announced today include Wood, TRL, and Resilient Organizations.
The initial expression of interest closed at the end of August 2018, but the Resilience Shift anticipates continuing this work into 2019. They will welcome future submissions from interested grantees at any time.
Yoon Kim, Director of Advisory Services, Four Twenty Seven, said:
“The Shipping Sector plays a critical role in connecting global economies and shipping companies face complex exposure to climate impacts based on both their commodities and countries of business. Leaders in the sector have the opportunity to build their own resilience and mitigate their losses while supporting resilient economies around the world.”
Ibrahim Almufti, Project Leader, Resilience Shift, said:
“Our aim is to shift the needle on resilience practice so that all organisations embed it into their decision-making. To achieve this, we must clearly articulate the value that resilience can bring.”
Jo da Silva, Acting Programme Director, Resilience Shift, said:
“We are engaging directly with industry stakeholders and with those responsible for incentivizing resilience for critical infrastructure. The Resilience Shift is a global initiative, we want to develop a common understanding across infrastructure systems globally, and our new grantees are diverse both geographically and in their target sector.”
Read more about resilient infrastructure in this Lenders’ Guide for Considering Climate Risk in Infrastructure Investments and explore Four Twenty Seven’s solutions for assessing physical climate risk and developing resilience strategies.