Newsletter: How to disclose climate risk and opportunities?

 

 


Four Twenty Seven Climate Solutions

TCFD Releases Final Recommendations

The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released their final recommendations in late July. The changes to the recommendations reflect the extensive feedback the Tasforce received from the stakeholder engagement process in the past six months. Key changes include:

  • Simplifying the recommended disclosure related to Strategy and scenarios to focus on the resiliency of an organization’s strategy to climate risk and opportunities
  • Establishing a threshold for organizations that should consider conducting more robust scenario analysis to assess the resilience of their strategies.
  • Clarifying that the recommended disclosures related to the strategy and metrics and targets recommendations depend on an assessment of materiality, whereas disclosures on governance and risk management are relevant for all organizations.
  • Updated conceptual map of climate-related risks and opportunities and associated financial impacts.


The recommendations were presented at the G20 summit in Hamburg, Germany last week, with hopes that the world leaders would formally endorse the guidelines. Climate change was high on the agenda for the summit, where all but the United States voiced a strong re-commitment to the goals of the Paris Agreement, and the G20 included by reference the TCFD recommendations in the Climate and Energy Action Plan for Growth.

CEOs Endorse TCFD recommendations

The TCFD final recommendations were endorsed by over 100 CEO’s from a wide range of companies, including large financial institutions like Barclays and Morgan Stanley as well as energy and manufacturing companies like Suez, DuPont, and Unilever. Reactions from a broad range of financial analysts was also positive, noting the need for improvements and wider adoption of climate risk disclosure practices.

A number of initiatives are already under way to think through and plan the implementation of the TCFD recommendations, such as the UNEP FI’s effort with major banks from around the world who have pledged to work towards adopting these recommendations, and put forth actions they see as needed for broader adoption of climate risk reporting.

Further readings:

  • The Economist Intelligence Unit’s  “The Road to Action” report finds that investors, asset managers, and banks are in urgent need of a way to identify and measure how the industry is responding to climate-related risks. It notes that their interviewees widely regard these recommendations as having the clearest mandate to providing possible solutions.
  • Aon’s white paper Financial Regulators Awaken: Prepare to Disclose Climate Risk notes that risk management and analytics is what differentiates the TCFD’s recommendations from many existing standards. “Risk management, including insurance and risk analytics, is given a key role in helping businesses understand and quantify climate risks. The recommendations provide a framework that can enhance risk management, empower corporate strategy, and improve resilience in a fast-changing world.”
  • The 2-Degree Investing Initiative takes a deep dive into corporate disclosures in its forthcoming report “Limited Visibility”, part of their Tragedy of the Horizon program. The report presents the current state of corporate disclosure on long-term risks and long-term forward looking data using analysis of MSCI World companies’ financial disclosures.

Climate Change in the Boardroom: Towards Climate-Competent Boards


What is a climate-competent board, and why does having one matter? Four Twenty Seven CEO Emilie Mazzacurati was invited to speak on exactly that during the Investing in the Age of Climate Change symposium at the University of Oregon. The symposium tackled issues around climate risk, their connection to investment decisions, and the need to understand how these risks can affect an organization’s business in the long-term. Emilie delved into the climate-competent board and presented on the opportunities they provide, and steps to implement climate-competency on a board. Watch the presentation, delivered via webcam.

How Much Will Climate Change Cost in the United States?

A new research article in Science magazine reveals that in the decades ahead, climate change will affect parts of the United States differently. The study found that areas in the Midwest and Southeast will likely suffer more economic harm from climate change with some areas possibly benefiting from the wild winters. The researchers hope to continue working on this study to further provide more specifics in individual areas to help local policymakers prepare for the incoming risks.

Join the Team!

Four Twenty Seven is hiring! We are looking for Business Development Managers (Europe and US), as well as talented analysts with a background in economics, econometrics, and data analysis. See the position descriptions.

Upcoming Events

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TCFD Releases Final Recommendations

Conceptual map of climate-related risks, opportunities, and financial impacts, from the final TCFD recommendations report

The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released their final recommendations in late June. The changes to the recommendations reflect the extensive feedback the Taskforce received from the stakeholder engagement process in the past six months. Some key changes include:

  • Simplifying the recommended disclosure related to Strategy and scenarios to focus on the resiliency of an organization’s strategy to climate risk and opportunities
  • Establishing a threshold for organizations that should consider conducting more robust scenario analysis to assess the resilience of their strategies.
  • Clarifying that the recommended disclosures related to the strategy and metrics and targets recommendations depend on an assessment of materiality, whereas disclosures on governance and risk management are relevant for all organizations.
  • Updated conceptual map of climate-related risks and opportunities and associated financial impacts.

TCFD Recommendations at G20

The recommendations were presented at the G20 summit in Hamburg, Germany, with hopes that the world leaders would formally endorse the guidelines. Climate change was high on the agenda for the summit, where all but the United States voiced a strong recommitment to the goals of the Paris Agreement, and the G20 included by reference, the TCFD recommendations in their Climate and Energy Action Plan for Growth.

CEOs Endorse the Recommendations

The TCFD final recommendations were endorsed by over 100 CEO’s from a wide range of companies, including large financial institutions like Barclays and Morgan Stanley as well as energy and manufacturing companies like Suez, DuPont, and Unilever. Reactions from a broad range of financial analysts were also positive, noting the need for improvements and wider adoption of climate risk disclosure practices.

A number of initiatives are already under way to think through and plan the implementation of the TCFD recommendations, such as the UNEP FI’s effort with major banks from around the world who have pledged to work towards adopting these recommendations, and put forth actions they see as needed for broader adoption of climate risk reporting.

Further Readings

  • The Economist Intelligence Unit’s  “The Road to Action” report finds that investors, asset managers, and banks are in urgent need of a way to identify and measure how the industry is responding to climate-related risks. It notes that their interviewees widely regard the TCFD’s recommendations as having the clearest mandate to providing possible solutions.
  • Aon’s white paper Financial Regulators Awaken: Prepare to Disclose Climate Risk notes that risk management and analytics is what differentiates the TCFD’s recommendations from many existing standards. “Risk management, including insurance and risk analytics, is given a key role in helping businesses understand and quantify climate risks. The recommendations provide a framework that can enhance risk management, empower corporate strategy, and improve resilience in a fast-changing world.”
  • The 2-Degree Investing Initiative takes a deep dive into corporate disclosures in its forthcoming report “Limited Visibility”, part of their Tragedy of the Horizon program. The report presents the current state of corporate disclosure on long-term risks and long-term forward looking data using analysis of MSCI World companies’ financial disclosures.

Four Twenty Seven helps investors, Fortune 500 companies, and government institutions understand how to quantify and monetize climate change impacts on operations and asset portfolios. Our clients rely on Four Twenty Seven’s tools and models to factor into financial and operational planning processes. Learn more about how we are helping our clients assess and adapt to climate risks.

Developing Climate-Competent Boards: Climate Risk and Opportunities

Four Twenty Seven’s founder and CEO Emilie Mazzacurati was invited to speak during the Investing in the Age of Climate Change symposium on April 28, 2017, at the University of Oregon. Emilie presented through a video call and talked about Four Twenty Seven’s work, but mainly discussed climate-competent boards. She delved into what a climate-competent board is, the opportunities they provide, and steps to implement climate-competency on a board. She also discussed economic impacts from climate change, the TCFD climate risk disclosure recommendations, the Paris Agreement, and how these topics relate to climate-competent boards.

Investing in the Age of Climate Change was sponsored by the University of Oregon’s Office of the President and the Office of Sustainability. The symposium tackled issues around climate risk, their connection to investment decisions, and the need to understand how these risks can affect an organization’s business in the long-term.

Video: Emilie Mazzacurati speaking at Investing in the Age of Climate Change

Newsletter: The Rise of Climate-Competent Boards

 

 

News and analysis on climate change adaptation.


Four Twenty Seven Climate Solutions

Institutional Investors Speak Up on Climate Risk

Institutional investors are expressing growing concern over risks posed by a changing climate to assets and investment portfolios. On January 26th, State Street Corp, which manages $2.5 trillion worth of assets, sent a letter to the boards of corporations it invests in, asking the companies to disclose their plans to account for climate change and other social issues. Over the long-term, these issues can have a material impact on a company’s ability to generate returns,” State Street said in the letter. “Corporate scandals of the last few years around automotive emissions, food safety or labor issues have emphasized the need for companies to assess the impact of ESG risks.”

The call for disclosures is rising from individual fund managers as well. Canadian pension manager OPTrust released details of its approach to climate considerations when investing, and asking for more standardized measures for disclosing these risks.

New EU Directive Requires Pensions to Assess Climate Risk

The EU adopted a regulation regarding Pension Funds, the IORP II Directive in December 2016. A key feature of the directive is the consideration of environmental, social and governance (ESG) factors as part of pension providers’ investment. In particular, pension providers are now required to carry out their own risk assessment, including climate change-related risks, as well as risks caused by the use of natural resources, social impacts, and regulatory changes.
Read our summary of the Directive.

Next Steps for the TCFD

The public comment period for the recommendations made by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) just closed. What comes next for the TCFD? The Task Force will continue its stakeholder engagement through the spring, and prepare a final report to present at the July 2017 G20 summit.
While the TCFD acknowledges that full market adoption of climate risk analysis and disclosure may take up to five years, as shown below, many companies and investors are starting to actively investigate how to respond to this new requirement and how to assess risks in their portfolio.


Webinar: TCFD Recommendations

 

TCFD Recommendations: What You Need to Know

On January 12, Four Twenty Seven hosted a webinar to present the key recommendations from TCFD and discuss feasibility, next steps, and issues to consider for implementation. Watch the recording from the live event to learn about best practices, innovative tools and emerging methodologies to assess carbon and climate risk at the corporate and portfolio level.

The Rise of Climate-Competent Boards

With the decreasing likelihood in the United States that the federal government will push for guidelines to assess and manage climate risk, investors are take matters into their own hands in order to avoid unnecessary losses. Rich Ferlauto, former SEC Deputy Director of Investor Education and Advocacy, writes in a Pensions & Investments op-ed that the change in administration doesn’t affect the scientific reality that predicts widespread disruption to companies that do not plan for climate change. These risks have been noted in the fossil fuel industry, in companies that would presumably be most resistant to climate action. As ExxonMobil’s former CEO Rex Tillerson takes office as U.S. Secretary of State, the company’s board has added Susan Avery, a physicist and atmospheric scientist, to its board of directors. The move is seen by some as greenwashing, but with Avery’s respected career in climate science, this also sends a signal that climate science will be increasingly integrated into strategic and governance decisions.

Report: Shades of Climate Risk 

The urgency grows for understanding and preparing for climate risks, notes CICERO Climate Finance in their recent report Shades of Climate Risk – Categorizing Climate Risks for Investors, as impacts that had been projected for occurring in the future are being seen in the present day. The report highlights risks that warrant immediate concern, in contrast with more long term impacts. In addition, investors should look beyond physical impacts projected for a warming increase of 2°C, as there are risks due to policy and market changes as other organizations work to adapt, and the long-term odds of meeting the 2°C scenario are small. Given these complicating factors, the full report noting risks by region and sector will be quite useful.

Join us at the Climate Leadership Conference

This year’s Climate Leadership Conference convenes in Chicago from March 1-3, focusing on addressing climate change through policy, innovation, and business solutions.

On March 1st, Four Twenty Seven CEO Emilie Mazzacurati will speak at the pre-conference session “What Makes Infrastructure Resilient?” organized by C2ES (11am-12:30pm). The next day, Emilie will  moderate the panel session “The Changing Landscape of Climate Risk Disclosures” (2-3:30pm). Nik Steinberg, Director of Analytics, will also attend the conference.

Come visit Nik and Emilie at the Four Twenty Seven booth throughout the conference!

Upcoming Events

Join the Four Twenty Seven team in the field at these upcoming events:
  • March 1-3: Climate Leadership Conference, Chicago, IL: See above for details.
  • March 7-9: RES/CON, New Orleans, LA: Meet with Director of Advisory Services Yoon Kim to discuss tools for resilience planning.
  • March 16: GoGreen Seattle, Seattle, WA: Learn about climate risk analysis from Four Twenty Seven staff.
  • April 20: The Proadapt Symposium, Washington, DC: Emilie Mazzacurati will join the symposium from the Inter-American Developpment Bank “Climate Risk and Investment: Framing Private Challenges and Opportunities”.
  • April 26-27: Ceres Conference, San Francisco, CA: Meet Emilie Mazzacurati to learn more about Four Twenty Seven’s services for investors.
  • May 9-11: National Adaptation Forum, St. Paul, MN: Yoon Kim will present on a panel on Innovations in Adaptation Finance, and Director of Community Adaptation Aleka Seville will present Four Twenty Seven’s work in adaptation planning.
  • May 17-18: Women and the Environment, Santa Barbara, CA: Aleka Seville will attend the first conference focused on the women who are shaping the future of our communities.

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TCFD Key Recommendations for Climate Risk Disclosure

The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) is an industry-led task-force established at the December 2015 G20 summit for improving voluntary financial disclosure of climate-related risks. Eight months after the release of its Phase I report (discussed  in a policy brief), the TCFD published a comprehensive set of recommendations on December 14 in its Phase II report. The recommendations provide detailed guidance for companies on how and what to integrate in their financial climate risk disclosure. These recommendations are categorized into four different components: Governance, Strategy, Risk management, and Metrics.

Core Elements of Recommended Climate Risk Disclosures

Governance

The first set of recommendations relates to the organization’s governance for addressing climate-related risks and opportunities.

At the board-level, TCFD report recommends disclosing how and how often is the board informed about climate-related issues, whether it integrates them when reviewing, guiding, monitoring the organization’s activities, and how it oversees progress against goals and targets for addressing those issues.

At the management-level, the TCFD suggests disclosing whether the organization has assigned climate-related responsibilities to management-level positions, what those responsibilities entail and how they are reported to the board. Just as for board-level, the report also invites organizations to describe processes by which management is informed about climate-related issues and how it monitors them.

Strategy

The second set of recommendations covers how climate-related issues may affect an organization’s businesses, strategy, and financial planning over the short, medium, and long term.

TCFD recommends organizations state what they consider to be the relevant short-, medium-, and long-term horizons, according to the nature of their assets / infrastructure, then identify the specific climate-related issues that could have a material financial impact on the organization for each time horizon and by distinguishing between physical and transition risks. According to the report, the risks and opportunities should be assessed by sector and geography when appropriate, and the methodology used should also be described along with the assessment.

Based on the above recommended disclosure, TCFD suggests disclosing as a first step how identified climate-related issues have already impacted the organization’s:

  • businesses, strategy and financial planning
  • products and services
  • supply chain and/or value chain
  • adaptation and mitigation activities
  • investment in R&D
  • operations, by types and location

As a second step, the report recommends assessing how the organization’s strategy is likely to perform under various climate-related scenarios and how what actions are subsequently taken to mitigate risks and take advantage of opportunities.

Risk management, metrics and targets

The last sets of recommendations relate to how the organization identifies, assesses, and manages climate-related risks, including the metrics and targets used.

The TCFD suggests disclosing the processes implemented within the organization for assessing the potential size and scope of identified climate-related risks, for managing those risks (be it through mitigation, transfer, acceptance or control) and for prioritizing them. More specifically, the organization should explain how materiality determinations are made.

According to the TCFD, organizations should consider providing the key metrics used to measure and manage those risks, especially metrics associated with water, energy, land use, and waste management where relevant, as well as the organization’s internal carbon prices. All metrics should be provided for historical periods to allow for trend analysis, along with a description of the methodologies used to calculate them.

Moreover, the TCFD recommends setting climate-related internal targets, such as those related to GHG emissions, water usage, energy usage, etc., but also efficiency goals, financial loss tolerances, or net revenue goals for products and services designed for a low-carbon economy. Targets description should detail whether the target is absolute or intensity based, time frames, key performance indicators and methodology used to assess progress against targets.

Examples of climate-related risks and their potential financial impacts

The report provides examples of physical and transition risks, along with their potential impacts on the organization’s finance.

Examples of climate-related risks and their potential financial impacts

The main challenge ahead: Identifying risk at asset-level

The process of scanning assets for physical climate risk exposure will require considerable effort and challenges, from accessing raw climate data at asset-level, to selecting appropriate indicators and time frame, and interpreting the output while accounting for climate data’s unique complexity and sources of uncertainties.

To support corporations and investors looking to identify hotspots and quantify value at risk in their portfolio of assets, facilities or across their supply chain, Four Twenty Seven has developed a suite of enterprise applications that provide rapid, cost-effective screening across portfolios of 10,000+ assets.

Learn more about CREST, our Climate Resilience Support Tool for corporate climate risk management, and our climate data analytics services for financial institutions.

Newsletter: Cities Mark the Path to Resilience

 

 

News and analysis on climate change adaptation.


Four Twenty Seven Climate Solutions

From the Desk of Aleka Seville, Director of Community Adaptation

With more than half of the world’s population living in urban areas – a figure expected to increase to two-thirds by the middle of the century – it is no surprise that cities have a critical role to play in global efforts to both mitigate climate change and build resilience. City leaders can often work more nimbly than can state and national officials, developing innovative, localized approaches for reducing emissions, managing water supplies, or protecting communities from climate-related hazards.

There are limits to what cities can do on their own, however. Private companies will greatly benefit from the work that cities are engaged in to increase resilience – whether in the form of safer, more reliable public infrastructure or improved planning and preparation for more frequent extreme weather events. Cities are struggling to fund these efforts and often don’t have the internal capacity to evaluate or develop new financing options. While this creates an obvious opportunity for private companies to step in and step up to advance these projects, financing is just one way that cities and companies can collaborate. CDP’s recent report on cross sector collaboration in cities highlights diverse opportunities for cities to engage with their business communities ranging from knowledge sharing to project implementation to financing. Understanding what is already working in cities around the world is key to moving at the speed and scale required to protect our communities.

At Four Twenty Seven, we also see the value in these partnerships, but seek to further understand their impact, and leverage the specific factors that make them successful. How are cities defining their “ask” when working with private companies? What roles can our business community (both large and small) play in building community resilience? Which of our many “wicked” public policy problems will benefit most from business engagement? Increased cross sector collaboration is not an end in and of itself – but it can be a critical step in the right direction.

As on all fronts of the climate challenge, there is more work to do, but much promise in collaborating to build vibrant communities that are well prepared for the rest of the 21st century and beyond.

— Aleka Seville, Director of Community Adaptation

CDP Global Cities Report: The Case for Collaboration with the Private Sector

Recent analysis backs the potential of both economic growth and reductions in carbon emissions in cities, as demonstrated in new CDP report: It Takes a City: The Case for Collaborative Climate Action. 533 cities from across the globe disclosed data through the CDP cities program, with over half seeing opportunities to develop new business initiatives related to climate action. Together, investment in these desired private-sector initiatives total $26 billion. As noted in the BBC, cities have been a leading driver for setting sustainability targets, and CDP report shows they realize the need to reach outside city halls.

Audio Blog: Engaging the Private Sector on Climate Resilience


In an audio recording from a panel on The Economic Impacts of Climate Change at the 2016 California Adaptation Forum, Four Twenty Seven CEO Emilie Mazzacurati discusses how the private sector is responding to climate change risks and highlights opportunities for local governments to engage with local businesses on climate resilience in this audio recording from. Listen and follow along with slides from the presentation.

Resilience in Action: An Update on 100 Resilient Cities

Earlier this year the 100 Resilient Cities Project, started in 2013 by The Rockefeller Foundation, announced its full list of the first 100 cities to take part in a networked effort to improve their planning to meet the challenges of the 21st century. Through the program, cities get resources and guidance to build their resilience. For their third anniversary, 100 Resilient Cities released a report on progress towards building resilience into city institutions, sharing lessons learned from work in New Orleans, Melbourne, and Semarang, Indonesia. Download the full report here.

Mayors of Major World Cities Call for Help to Finance Climate Projects

To do their part in meeting the goals of the Paris Agreement, mayors from the C40 Cities Climate Leadership Group are calling for national governments and financial institutions to enact reforms to make it easier to finance sustainable infrastructure projects. City leaders see the duty to act to protect their citizens, and building sustainable infrastructure has so far been a challenge in cities. To solve this, the cities are asking for direct access to international climate funds, and the power to control finance devolved from the national level, among other reforms.

Solutions for Building Resilience Through City Government

For governments, adapting successfully to a changing climate requires customized solutions and guidance. Four Twenty Seven provides climate adaptation consulting services to help local, regional, and state governments identify risks and vulnerabilities, overcome barriers, and leverage opportunities to build resilience. We have recently completed work with cities in the San Francisco Bay Area to develop custom tools to highlight local climate risks, aiding plans to protect against these hazards. Learn more about our award-winning products and services.

Upcoming Events

Join the Four Twenty Seven team in the field at these upcoming events:
  • October 29 – November 2American Public Health Association Annual Meeting, Denver, CO: Meet with Director of Advisory Services Yoon Kim.
  • November 12-15: COP 22, Marrakesh, Morocco: Meet CEO Emilie Mazzacurati and CSO Camille LeBlanc at the Global Climate Finance Action Summit 2016 and Sustainable Investment Forum to discuss private sector and climate finance.
  • December 12-15: AGU 2016 Fall Meeting, San Francisco, CA: Director of Analytics Nik Steinberg, Director of Finance Colin Shaw, and Climate Data Analyst Colin Gannon will be presenting on analyzing vulnerability to extreme heat events.
  • January 22-26: American Meteorological Society Annual Meeting, Seattle, WA: Nik will be presenting on a decision-support tool for extreme heat adaptation.
  • January 2426: NCSE 2017, Arlington, VA: Yoon will be moderating the panel “Climate Data & Public Health: Mobilizing Adaptation Action.”

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Supply Chain Risk, on SustainabilityDefined

Supply Chain Risk on SustainabilityDefinedSustainabilityDefined is the podcast that seeks to define sustainability, one concept (and bad joke) at a time. Hosted by Jay Siegel and Scott Breen. Each episode focuses on a single topic that helps push sustainability forward. They explain each topic with the help of an experienced pro.

CEO Emilie Mazzacurati joins the show for Episode 14 to discuss supply chain risk, leading with the dire news that the world may run out of coffee and chocolate by 2050! How is that possible, you ask? Emilie helps Jay, Scott, and their listeners understand why supply chains are so critical to delivering the goods we love, and how understanding the effects of climate change could help us avert a world without coffee and chocolate. Click the audio player above to listen in!

Audio Blog: Engaging the Private Sector on Climate Resilience

Four Twenty Seven CEO Emilie Mazzacurati discusses how the private sector is responding to climate change risks and highlights opportunities for local governments to engage with local businesses on climate resilience in this audio recording from a panel on The Economic Impacts of Climate Change at the 2016 California Adaptation Forum.

Follow along with Emilie’s talk in the slides below.

Newsletter: Business Opportunities in Climate Adaptation 

 

 

News and analysis on climate change adaptation.


Four Twenty Seven Climate Solutions

From the Desk of Emilie Mazzacurati

The private sector needs to pay more attention to climate adaptation. Too often, companies see climate adaptation as a responsibility that befalls exclusively to national and local governments, and governments themselves don’t always know how to engage the private sector in adaptation efforts.

Yet a growing number of thought-leaders in the public and private sector now view business engagement into adaptation effort as critical to social and economic welfare. Just in the past months, several U.S. and international agencies have issued calls and guidance to foster greater commitment and more explicit action from large corporations towards responsible corporate adaptation. We highlight below the U.S. EPA Climate Leadership Awards, the recent call to action from Caring for Climate and the United Nations Global Compact, as well as the “NAZCA” portal launched by the UNFCCC for businesses to publicize their accomplishments in support of the Paris agreement.

But climate adaptation goes well beyond preparedness and risk management. The world needs business ingenuity to provide new technology, new knowledge, new data systems, and new financial instruments to support adaptation efforts. Climate adaptation presents vast business opportunities for smart-thinking companies, and opportunities to weld together economic growth and social change. View our video from the Proadapt conference on Challenges and Opportunities for Private Sector Climate Resilience to learn more.

Now is the time to start thinking about what climate change means for your business – how you can prepare, engage, and help develop market solutions for greater economic and social resilience. Take the next step with us.


Emilie Mazzacurati, Founder and CEO

Caring For Climate calls for
Corporate Adaptation Leaders

 

Caring for Climate, an initiative from the UN Global Compact, UN Environmental Program, and the UNFCCC recently released a call to corporate adaptation leaders to take on concrete action to adapt to climate change. The recommendations, Commit to Responsible Corporate Adaptation, identify several benefits and four concrete actions for businesses to take:

  • Implement a comprehensive climate risk assessment to identify how climate change will impact the company through its entire value chain;
  • Integrate into core business strategies and operations corporate adaptation goals that also address community risks;
  • Engage with policymakers and relevant stakeholders to support national or local adaptation planning and implementation, particularly in the areas where the company or its suppliers operate;
  • Disclose climate risk information considered material by the company and communicate annually on the three elements above in public corporate reports.

The recommendations build on the Caring for Climate report, The Business Case for Corporate Adaptation, authored by Four Twenty Seven, which explores the business case for responsible corporate adaptation to climate change.

The Business Case for
Responsible Corporate Adaptation

The Business Case for Responsible Corporate Adaptation: Strengthening Private Sector and Community Resilience explores the business case for responsible corporate adaptation to climate change. It provides a conceptual framework and tools, supported by a series of in-depth case studies of companies taking the lead in building resilience and adaptation strategies.

Responsible corporate adaptation encompasses the strategies, actions, and partnerships through which businesses adapt to climate impacts and at the same time create shared resilience benefits for the communities and ecosystems where they operate. The report shows that when companies take action to support and empower the communities they depend on, they also reap the benefits.

The report provides a conceptual framework and tools, supported by a series of in-depth case studies of companies taking the lead in building resilience and adaptation strategies.

Read the report

Video: A Strategic View of Private Climate Resilience – Trends and Opportunities.

 

PROADAPT/PANEL 5 A Strategic View of Private Climate Resilience

Four Twenty Seven CEO Emilie Mazzacurati participated in the Proadapt Conference “The Challenge and Opportunity of Private Sector Climate Resilience” in Cartagena, Colombia, May 25-27. The panel, A Strategic View of Private Climate Resilience, also included Joyce Coffee, Climate Resilience Consulting; Eric Kaufman, Welbilt Realty Partners; and Dale Sands, AECOM.
Watch the panel recording

U.S. EPA Climate Leadership Awards

The Environmental Protection Agency and the Climate Leadership Conference released its call for applications for the Climate Leadership Awards, open through Sept. 26, 2016. Awards will be given at the Climate Leadership Conference in Chicago, March 1-3, 2017. New for the 2017 awards is the consideration of adaptation and resilience projects for the Innovative Partnership Certificate – recognizing organizations working together to go beyond their individual missions.

Accelerating Climate Action: Business Support for the Paris Agreement

The UNFCCC launched the Non-State Actor Zone for Climate Action (NAZCA) portal, which registers actions taken by companies, cities, and other institutions worldwide to address climate change. The NAZCA site is easily searchable and browsable, providing the ability to see corporate adaptation actions, such as Anheuser Busch InBev working to reduce water risks and improve water management in all of their key barley-growing regions. Similarly, Johnson & Johnson reduced their water withdrawals by 10% from 2010 to 2015, prioritizing water stressed areas.

Visit the portal

Meet the Team: Alejandra Calzada

Alejandra CalzadaWe’re glad to introduce the latest addition to our team: Alejandra Calzada. Alejandra joins as a Senior Analyst.

At Four Twenty Seven, Alejandra is a policy researcher and focuses on corporate climate resilience, international adaptation finance, and climate risk disclosures.

Learn more about Alejandra’s expertise

We’re Hiring! Join Our Growing Team

We are excited to announce our search for highly-qualified and motivated professionals for a Senior Climate Risk Analyst position, and other positions in climate modeling and financial engineering. We are also accepting resume submission on a rolling basis to join our pool of international climate change adaptation experts.

View the job postings and apply to join our team

Upcoming Events

Join our team in the field at these upcoming events:
  • September 7-8: California Adaptation Forum (CAF), Long Beach, CA – find CEO Emilie Mazzacurati, Director of Advisory Yoon Kim, Director of Community Adaptation Aleka Seville and Kendall Starkman at the Four Twenty Seven booth.
  • September 12-14: Carolinas Climate Resilience Conference, Charlotte, NC – Kendall Starkman will present on innovative mechanisms for resilience finance.
  • September 13-16: SOCAP16, San Francisco, CA – meet with Chief Strategy Officer Camille LeBlanc.
  • September 20: Sustainable Investment Forum, New York City, NY – meet with CEO Emilie Mazzacurati and CSO Camille LeBlanc
  • September 20-22: Climate Knowledge Brokers Workshop, Golden, CO – Director of Analytics Nik Steinberg will lead a workshop on climate health modeling.
  • October 5-7:Great Lakes Adaptation Forum, Ann Arbor, MI – Meet Yoon Kim and Kendall Starkman at the Four Twenty Seven booth

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Newsletter: Corporate Leadership and Climate Resilience

 

 

Climate resilience news and announcements


From the Desk of Emilie

Climate risk is high on the corporate agenda, but most corporations and investors are yet to to incorporate climate change into their enterprise risk management and strategic processes.

Our research shows critical climate impacts can be efficiently identified thanks to our proprietary hotspot screening methodology. Quantifying risk is essential to business resilience, and showing a good command of climate risk in financial disclosure is critical to keeping investor confidence.

Business leaders know they can stay ahead by leveraging climate data into their business analytics – we’re proud to help them innovate and become more resilient.


Emilie Mazzacurati, Founder and CEO

Climate Change: Global Risk Factor #1

The business community officially names climate change as #1 global risk. In the 11th edition of the World Economic Forum’s Global Risk report, “failure of climate change mitigation and adaptation” ranked as the number one global risk for 2016 in terms of impact, and number three in terms of likelihood. Water crises and extreme weather events were also near the top of the list. 
Understand Your Climate Risk Exposure

BlackRock: Overcoming ‘Short-Termism’

 

In his open letter to CEO’s everywhere Laurence Fink CEO of BlackRock – the world’s largest money manager – articulated the need for long term thinking to be integrated into board room decision making. He noted that ESG impacts like climate change “have real and quantifiable financial impacts.”At Four Twenty Seven we are working to highlight such risks, and help board members and entire organizations make more informed financial and operational decisions.

Quantifying Climate Risk: Tool

Do you know which of your facilities is most exposed to climate change? Are your assets vulnerable to extreme weather events or to sea-level rise? Our Climate Risk Forecasting and Adaptation Strategic Tool is a fast and convenient way to screen your facilities and suppliers, and reduce vulnerability to climate change risk.
Learn More

Video: Recognising the Value at Risk from Climate Change

 

The FSB Task Force on Climate Related Financial Disclosure recently released a series of videos about climate change and corporate financial disclosure.

Mindy Lubber from Ceres outlines the role climate risk disclosure can play in paving the road towards sustainability and better business outcomes. We are optimistic about the ability of reporting to expand disclosure beyond what Lubber calls “boilerplate and superficial” by providing tangible pathways towards creating resilient operation and supply chains.

View her talk and others from thought leaders working on climate disclosure and financial reporting here.

CDP Global Supply Chain Report

 

The CDP has released their annual supply chain program report. The report, written with BSR’s support, used data from the supply chain program and combined this with insights from both organizations’ work with members to understand and address climate change.

Of the 4,005 global suppliers surveyed by the CDP most of whom recognize the climate risks they face: 72% identified regulatory, physical, and/or a wide range of other climate-related risks, and most of those (64%) specifically highlighted their regulatory risks.

Climate Change at the top of 2015 Insurance Claims

 

Insurers paid out around $27 billion for natural disaster claims last year with weather causing 94 percent of incidents, underscoring the challenge posed by climate change, data from reinsurer Munich Re showed. (Reuters)

What We Are Reading: SASB on Climate Risk

 

The Sustainable Accounting Standards Board has just released its new Technical Bulletin on Climate Risk. This report highlights the findings that have surfaced from SASB’s work, offering a big-picture view of how and where climate risk is present. SASB research demonstrates that $27.5 trillion, or 93 percent of U.S. equities are exposed to the systemic nature of climate risk. 

Next week! Climate Leadership Conference

 

Emilie will be presenting on The Cost of Inaction and Making the Business Case for Investing in Resilience at the 2016 Climate Leadership Conference on Wednesday, March 9th, 2016. 

Now in its fifth year, the CLC is organized by the Center for Climate and Energy Solutions (C2ES) and The Climate Registry (TCR), with the U.S. Environmental Protection Agency as the event’s headline sponsor.

Also make sure you don’t miss the workshop hosted by C2ES and the University of Washington Climate Impacts Group on Defining and Measuring Success When Planning for Resilience.

Catch us at these events

Join our team in the field at these upcoming events

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Four Twenty Seven

2000 Hearst Ave
Ste 304

BerkeleyCA 94709

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