Thegef-The next challenge for business: adapting to climate change

 

 

The private sector must begin preparing for climate change and the ensuing disruption to operations and services with new approaches

 

 

The future success of the private sector may not only depend on how successfully it can mitigate, but also on how it can adapt to climate change. Extreme weather events are already causing havoc to operations, supply chains and commerce all over the world.

 

 

Only this summer, flooding in the US Midwest destroyed corn and soya crops; the Bahamas suffered their worst hurricane on record; while in Europe, train companies turned away passengers because tracks were at risk of buckling in record summer temperatures. Wherever you were, it was not business as usual.

 

 

Yet climate risk continues to be ignored by most businesses. Investment is not flowing to where it is needed most: to build more resilient economies in response to global warming.

 

 

There are exceptions, of course. Shipping company Maersk is studying how to make ports more resilient to rising seas. Bloomberg, the news and financial-data company, has relocated a key data centre out of Manhattan to protect its equipment against flooding.

 

 

We are surprised that only a handful of companies have developed plans for a future on a warming planet, not least because adaptation is in their best interests.

 

 

The Global Commission on Adaptation estimates that investing $1.8 trillion to climate-proof businesses and the broader economy between now and 2030 could generate up to $7.1 trillion in net benefits. This is a very attractive return on investment.

 

 

And, according to a recent survey by CDP (Carbon Disclosure Project), half of the world’s biggest companies believe climate-adaptation solutions could result in $236 billion in increased revenue.

 

 

Climate inaction equates to leaving money on the table – and the decision to “delay and pay” could have devastating consequences for businesses and families, especially in developing countries where climate risks are highest and already demonstrating itself. If we don’t use our capabilities and innovative power to make the most vulnerable countries more resilient, we take a big risk on mass immigration and the societal tension this will create as well. None of which is good for business.

 

It no longer makes sense for companies to think about climate change mitigation and climate change adaptation as separate line items. The private sector needs an integrated strategy to confront climate disruption - business leaders would make better decisions by considering both sides of the equation together.

 

 

Investing in resilience takes many forms. Agricultural and industrial companies need to ensure their supply chains as well as their own operations can withstand the disruption of extreme weather events.

 

 

Meanwhile banks strengthen their portfolios when they help finance climate-ready infrastructure, and insurers protect themselves against crippling weather-related claims when they market insurance products with built-in incentives for adopting greater climate resilience.

 

 

Given that climate adaptation makes sound business sense, how can we increase private-sector involvement in adapting to a warming planet?

 

 

There is a clear role for governments to play in supporting this strategic shift, in pursuit of what the Global Commission on Adaptation calls a “triple dividend” of avoided losses, increased productivity and innovation, and the generation of social and environmental benefits. For instance, there is a need for increased focus on climate risk assessments. While companies should be more transparent on how risks are assessed and managed, businesses would benefit from a clear regulatory framework for reporting on anticipated impacts from climate change.

 

Find out more...

Go back

CBFP News

Resources and follow-up from the virtual FAO-EcoAgriculture Partners Roundtable

Last April 30th FAO and EcoAgriculture Partners organized a virtual Roundtable on Territorial Perspectives for Development, in which over 170 people participated.

Read more …

ATIBT -CBFP: Private Sector mobilized around the CBFP Facilitator of the Federal Republic of Germany

ATIBT co-facilitated the mobilization of the private sector of the timber sector to participate in the first meeting of the private sector college of Congo Basin Forest Partnership with the new facilitator Dr Christian Ruck and his team German Facilitation.

Read more …

Development and institutionalization of a PAFC certification system for the Congo basin: opening of the second public consultation on Sustainable Forest Management Certification Standard, 23 May 2020 - 22 June 2020

This second public consultation will be open for a period of 30 days from tomorrow Saturday the 23rd of May 2020 and will be closed on Monday the 22nd of June 2020. The public consultation is open to all stakeholders of forest management in the Congo Basin interested in participating to the PAFC Congo Basin certification standards development process.

Read more …

Forest defenders on the COVID-19 frontline stand ready to assist the global EU response – Fern

These efforts go hand in hand with ensuring continued responsible management of natural resources and preventing unsustainably and illegally sourced forest commodities. In the Democratic Republic of Congo, forest-monitoring organisations Observatoire de la Gouvernance Forestière (OGF) and Réseau des observateurs indépendants des ressources naturelles (RENOI) are set to carry out COVID awareness-raising in at-risk forest areas, and will also assess COVID’s impact on forest management and governance commitments under the Central African Forest Initiative (CAFI). Across the Congo Basin, fears that a proper lack of oversight may put forests and forest peoples in danger are looming despite emerging initiatives.

Read more …

22 May 2020 International Day for Biological Diversity

The theme of the 2020 International Day for Biological Diversity is “Our Solutions are in Nature”. It shows that "Biodiversity remains the answer to a number of sustainable development challenges that we all face. From nature-based solutions to climate, to food and water security, and sustainable livelihoods, biodiversity remains the basis for a sustainable future."

Read more …

Watch our new video – UICN

On the occasion of the World Biodiversity Day, this new PPI video proposes to illustrate this question of biodiversity conservation and the links with local economic development. It shows two testimonies, one of Alexis Kaboré (NATUDEV) who develops sustainable value chain of honey and shea butter in the PONASI complex in Burkina Faso and one of Caleb Ofori (Herp Ghana) who implements a national ecotourism project in the mountains of eastern Ghana.

Read more …

COVID-19 and smallholder producers’ access to markets - FAO

In a pandemic such as COVID-19, measures to limit the spread of the virus require physical isolation and various levels of restrictions on people’s movement, and in some cases complete lockdowns. Inevitably, these measures cause transportation delays and bottlenecks in the flow of goods and services, including in the agricultural sector.

Read more …

CBFP News Archive

2020