Weathering the Next Storm: A Closer Look at Business Resilience
Extreme weather and other climate-related impacts are becoming more frequent, and are imposing real costs on communities and companies. Companies have always navigated a changing business environment. But now they face a changing physical environment, as climate change affects their facilities and operations, supply and distribution chains, electricity and water, and employees and customers.
A new 2015 C2ES Report, Weathering the Next Storm: A Closer Look at Business Resilience, examines how companies are preparing for climate risks and what is keeping them from doing more. It also suggests strategies for companies and cities to collaborate to strengthen climate resilience.
The new report synthesizes public disclosures by S&P Global 100 companies, in-depth interviews and case studies, and workshops. It updates the groundbreaking 2013 report, Weathering the Storm, Building Business Resilience to Climate Change, which provided a baseline for how companies were assessing their climate vulnerabilities.
|Click above to see our Weathering the Next Storm infographic, with key takeaways|
- Most major companies recognize and report climate risks. Ninety-one percent of companies in the S&P Global 100 Index see extreme weather and climate change impacts as current or future risks to their business.
- Companies worry about climate impacts beyond their facilities. Almost all companies interviewed expressed concern about impacts to their supply chains and public infrastructure.
- There isn’t one right way to assess and manage climate risks. Many companies view climate change as a “threat multiplier” that exacerbates existing risks. This puts climate change into a familiar context, but could cause companies to overlook or underestimate the threats they face.
- Companies struggle to translate long-term, global climate data into short-term, local risks. Despite growing access to climate-related data and tools, companies say they need “actionable science” that helps them understand locally-specific risks or risk scenarios.
- Companies can start with a limited-scope vulnerability assessment – focusing, for example, on the most critical parts of the business – to raise internal awareness of climate risks.
- Companies should facilitate regular communication across departments involved in climate risk and resilience -- including sustainability, risk management, operations, and finance – and consider whether to change planning horizons to better incorporate climate risks.
- Companies, state and city governments, non-profits and local experts should explore partnerships to analyze data, evaluate climate risks, undertake cost-benefit studies, and implement resilience planning.
- Governments should look for ways to streamline climate risk reporting and provide more guidance on how to incorporate climate risks into financial disclosures.
- Governments should improve public infrastructure and provide opportunities for the private sector to contribute to resilience planning efforts and investments.
- Fact Sheet: Key Insights on Business State and City Collaboration for Climate Resilience
- Executive Summary of our 2015 report.
- Press release on the 2015 report.
- Blog: Are Businesses Prepared for Climate Impacts?
- Our 2013 report and infographic: Weathering the Storm, Building Business Resilience to Climate Change
- Slides from December 2, 2015 webinar for California’s Alliance of Regional Collaboratives for Climate Adaptation
- Video on our YouTube page from our 2013 presentations on Weathering the Storm: Building Business Resilience to Climate Change
- Business Resilience Workshop, March 24, 2015, Washington D.C.
- Climate Impacts and Resilience Workshop, July 26, 2014, Washington, D.C.
- The Executive Forum on Business and Climate, November 3-4, 2013.
- Business Resilience Webinar Series, September-December 2013.
- USA TODAY op-ed by National Grid US President Tom King and American Water CEO Jeff Sterba.
- Our Sept. 23, 2013, event at Climate Week NYC: agenda, photos, video interviews with speakers Preston Chiaro of Rio Tinto; Ken Daly of National Grid, New York; Alan Kreczko of The Hartford; and Lisa Shpritz of Bank of America.
- Our 2008 study, “Adapting to Climate Change: A Business Approach," which outlined an initial screening framework for assessing risks.
Video: Webinar for California’s Alliance of Regional Collaboratives for Climate Adaptation, December 2, 2015
Video of our report launch
Building Resilience to Climate Change -- Why it's Crucial
Panel: Taking Business Resilience to the Next Level
A number of states, cities, and power companies plan to press forward with clean energy efforts despite this week’s Supreme Court stay of the Clean Power Plan.
That’s because the future of carbon regulation is not “if” but “how and when,” and it is too big a question not to continue a thoughtful conversation among thoughtful people.
States to explore options
Officials in states including California, Colorado, Minnesota, Virginia, and Washington have said the court’s temporary stay won’t stop them from continuing to explore implementation options, which include leveraging the power of market forces to reduce emissions. Even states suing the Environmental Protection Agency (EPA) have been having these conversations, and most will continue to.
For instance, Montana Department of Environmental Quality energy bureau chief Laura Andersen told ClimateWire, "The market forces at play in the region are quite significant and will not go away just because the Clean Power Plan has a stay on it.”
Al Minier, chairman of the Wyoming Public Service Commission, said the stay could give regulators more time to develop strategies that are best for the state.
Cities back climate action
In a statement, the U.S. Conference of Mayors said it’s disappointed by the court’s move, especially given that it previously ruled greenhouse gas emissions can be regulated under the Clean Air Act.
Across the country, cities from Phoenix to Philadelphia are developing innovative partnerships with the private sector, investors, and the state to improve energy efficiency and increase renewable energy. These actions can help states meet Clean Power Plan obligations, but they also help cities and business cut energy costs, increase competitiveness, and improve local air quality.
Companies support clean power
Companies, including members of the C2ES Business Environmental Leadership Council, stepped forward this week to reiterate their support for reducing carbon emissions.
Among the statements from company officials:
National Grid, U.S.: “Climate change is a global imperative, and we must find ways to transition our energy industry into a decarbonized future.”
Pacific Gas and Electric Co.: “PG&E will continue to support the Clean Power Plan and will move forward with the many steps we are taking to support California's commitments to reduce greenhouse gases.”
Dominion: "We will work constructively with the Commonwealth and other stakeholders on a compliance plan that has our customers as the first priority, ensures reliability, and maintains a diverse mix of electric generation."
Exelon Corp.: "Our customers want reliable, clean and affordable electricity, and Exelon remains committed to helping drive the national transition to a low-carbon future."
At C2ES, we will continue to engage with states, cities, and companies on efficient and effective approaches to curbing emissions while keeping our power supplies reliable and affordable.
Progress is being made, but it must continue – and accelerate – if we are to avoid the most severe economic and environmental impacts of a changing climate. Tomorrow’s electricity system needs to look different from today’s, and it would be wise to continue to work on the clean power transformation.
Statement of Bob Perciasepe
President, Center for Climate and Energy Solutions
February 9, 2016
Contact: Marty Niland, email@example.com, (cell) 410-963-8974
The Supreme Court has made clear in previous rulings that EPA has the authority to regulate greenhouse gases. Whether or not the Court ultimately upholds this particular rule, the need to cut carbon emissions will remain, and states need to figure out the most cost-effective ways to do that. It’s in everyone’s interest that states keep at it, because whether it’s the Clean Power Plan or some other policy, they’ll need smart strategies to get the job done.
The country has made substantial progress reducing emissions and ramping up clean energy technologies. Much of that progress has come from business, state and city leadership and initiative. There’s no reason to halt progress and innovation as we wait for these legal challenges to work through the courts. C2ES will continue working with businesses, states and cities on market-based approaches to curbing emissions while keeping our power supplies reliable and affordable.
About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address our energy and climate challenges. Learn more at www.c2es.org.
Thursday, February 25, 2016, 1:30-2:30 p.m.
Gain insights into the policies and factors that move the electric vehicle (EV) market in New York state with a free information tool developed by the New York State Energy Research and Development Authority (NYSERDA), with support from the Center for Climate and Energy Solutions (C2ES) and Atlas Public Policy.
To help the EV market grow past its initial base of early adopters, it needs support from public policies, investments, and educational and marketing initiatives. Government agencies, businesses, and automakers have undertaken a wide variety of supportive actions, but tracking the effectiveness of the initiatives required gathering complex information from many different sources.
EValuateNY is a tool that eases the process of tracking initiatives and comparing their effects. EValuateNY is designed to provide easy access to comprehensive data from the EV market that lets government agencies, businesses, or researchers identify which factors affect the EV market in New York State, using databases and visualizations to create comparisons. This information can be used to glean market insights and develop guidance on ideas for further research. EValuateNY is a publicly available tool designed for Microsoft Excel and Power BI, allowing use by anyone with a basic knowledge of Microsoft programs.
This webinar will introduce EValuateNY and will review the tool’s uses. Adam Ruder from NYSERDA will host the session, with presentations by C2ES’ Dan Welch and Atlas’s Nick Nigro.
Statement of Bob Perciasepe
President, Center for Climate and Energy Solutions
January 28, 2016
The Center for Climate and Energy Solutions (C2ES) is honored to be recognized once again as one of the world’s leading think tanks.
We learned today that we ranked fifth among environment policy think tanks in the 2015 University of Pennsylvania’s Global Go To Think Tank Index, based on a worldwide survey of more than 4,600 scholars, public and private donors, policymakers, and journalists from 143 countries.
C2ES’s consistently high ranking is a tribute to our unique ability to bring together diverse stakeholders – business leaders, city and state officials, federal policymakers, and international climate negotiators – to achieve practical, commonsense solutions to our climate and energy challenges.
I congratulate and thank our outstanding staff, partners, and supporters who have helped C2ES achieve and maintain our success through the years.
Contact Laura Rehrmann at firstname.lastname@example.org
About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address the challenges of energy and climate change. Learn more at www.c2es.org.
|Business leaders dicuss ways they are innovating and investing to meet their climate challenges at a C2ES event during COP 21 in Paris. (Photo courtesy of UNFCCC via Flickr).|
A clear message coming out of Paris is that, now more than ever, businesses, states and cities are taking the lead on climate.
The conference kicked off with more than 150 heads of state -- the largest group of world leaders ever to stand together – urging action to curb the risks of of climate change – the more frequent and severe heat waves, droughts, downpours and rising sea levels that we’re already experiencing.
But I was struck by just how many state representatives, mayors, and business leaders from the U.S. and around the world were here in Paris, all lending their voice to support taking strong action globally to address climate change.
Soon after I arrived, I was honored to participate in a Climate Summit for Local Leaders at Paris City Hall hosted by Mayor Anne Hidalgo of Paris and former New York Mayor Michael Bloomberg. It was the first time local leaders had ever gathered in such numbers during a UN climate change conference.
But their actions on climate started long before Paris. More than 400 cities have signed onto the Compact of Mayors – a global coalition of cities committed to measure and reduce their emissions. Former Mayor Bloomberg explained it this way: “Policies at the local level can make a huge difference. Local leaders are doers.”
As negotiators in Paris put the finishing touches on a new global climate accord, it’s worth reflecting on how much the summit has already accomplished.
One event or agreement by itself can’t completely reverse the climate problem. But like other important moments in history, such as the drive to land on the moon in 1969, Paris can inspire innovations across society.The U.S. space program would not have been possible without technologies that still benefit us today like scratch-resistant lenses, computer microchips, smoke detectors and solar panels. Nearly half a century later, many businesses, cities, states and nations are taking new, bold steps to reduce emissions and move toward a clean energy economy.
Whether it’s paving the way for rapid, wide-scale development of renewables, investing in energy efficiency technology and lower carbon electricity, or building resilience to climate impacts, a huge wave of innovation has already been unleashed.
Consider just some of the announcements made before and during the Paris talks:
- Leaders of 20 countries announced they’ll seek to double investment in clean energy research and development over five years. Backing up this effort, called Mission Innovation, are more than two dozen investors led by Microsoft founder Bill Gates who have pledged to fund early-stage clean energy technology coming out of Mission Innovation.
- India and France announced an international solar alliance to dramatically increase the reach of solar energy to more than 100 countries in the tropics.
Global climate talks underway in Paris have been built on a foundation of more than just national government commitments. “Sub-national actors,” such as cities, states, and companies, have been making their own climate commitments ahead of Paris, and that trend continues this week.
Just today, in a full-page Wall Street Journal ad coordinated in part by C2ES, more than 100 companies announced their support for a fair and strong global climate agreement and pledged to ensure a transition to a low-carbon, energy-efficient U.S. economy. These companies join a growing chorus of corporate voices for climate action. For example:
- More than 150 companies, from Alcoa to Xerox, have signed the American Business Act on Climate Pledge and committed to reducing their environmental impact through steps such as cutting emissions in half, reducing water usage, and running on 100 percent renewable energy.
- Bill Gates and other leading business entrepreneurs launched a multibillion-dollar public-private partnership to fund research and development of innovative clean energy technologies.
- Last week, 78 global CEOs signed an open letter calling committing to action and calling on governments to implement carbon pricing.
- This fall, 14 energy, tech and manufacturing companies with more than $1 trillion in revenues signed a statement organized by C2ES supporting a balanced and durable international agreement.
Why do more and more businesses care about climate change?
Key Insights on Business State and City Collaboration for Climate Resilience
C2ES held a Solutions Forum workshop focusing on opportunities for collaboration on climate resilience in November 2015 in Detroit, Michigan. More than 40 business leaders, state and city officials, non-profit organizations, and other experts shared their experiences addressing climate change impacts and enhancing resilience. Discussion focused on the role each stakeholder group can play in planning for climate change. This paper summarizes the key insights of the meeting and areas of focus moving forward.