Accelerating Low-Carbon Transitions
Collins Climate Consulting
Accelerating Low-Carbon Transitions
Collins Climate Consulting
Climate Finance Publication
The State of Climate Adaptation and Resilience Investment
Collins is lead author on a paper released at the 2022 United Nations Climate Change Conference of the Parties (COP27) in Egypt by the Global Adaptation and Resilience Investment working group (GARI). The State of Climate Adaptation and Resilience Investment: Where We Are, Current Investor Views and Paths Forward looks at the global progress on understanding physical climate risk and resilience, assesses the developing market for investors, studies feedback from stakeholder surveys and discussions, and brings forth a set of recommendations and potential paths forward for resilience investments. Press release and paper available for download.
“Investors have an important role to play in helping to build resilience in the face of climate impacts and to incorporate climate risks in their investment decisions” notes Jay Koh, Founder and Chair of GARI, in the Forward to the paper.
ESG & Climate Change
Climate is the Universal Element of ESG
While companies worldwide grapple with what Environmental, Social and Governance (ESG) means for their business, one thing is becoming clear - climate change is a given for every ESG strategy.
"When it comes to what exactly will comprise the list of universal disclosures, there is no real alignment except for one issue agreed upon by all parties—climate change." - Fast Company, 4/21/21
Businesses must understand what their stakeholders - including investors, customers, suppliers, employees - expect in terms of the E in ESG. Investors want to understand the climate risks they are buying into. Employees want to understand the values they are aligning with. Clients want to know the strategic opportunities they are gaining from partners prepared for the future that is here.
"The SEC, the EU, several APAC countries, and the standards organizations have all prioritized climate change, so it is a safe bet that reporting on your company’s carbon footprint will soon be mandatory." - Fast Company, 4/21/21
This is more than carbon reporting. Understanding how climate impacts your business strategy is about identifying the risks and opportunities that climate change offers uniquely to you - and making the most of it.
Companies See Climate Change Hitting Their Bottom Lines
Global Companies Expect Financial Impacts Within 5 Years
Climate change has moved from a social and environmental issue to a direct financial concern for many companies, based on a Global Climate Change Analysis from CDP. Learn more here.
Climate Is a Strategic Business Matter
Climate risks are expensive
- Global companies report almost $1 trillion at risk from climate impacts, with many likely to hit within the next 5 years
- Companies report potential $250 billion in losses due to the write-offs of assets
- Changes in consumer demand, technology and products in a low-carbon economy can be competitive risks (or opportunities)
Climate change presents opportunities
- $26 trillion in direct economic gain is possible from climate action through 2030 according to a 2018 report from The New Climate Economy
- 72% of Millennials are willing to pay more for sustainable products - up from 55% in 2014 (Nielsen Research, 2015)
- Product and technology innovation, expanding markets and resource efficiencies are profit opportunities
Stakeholders expect accountability
- 86% of Millennials are interested in sustainable investing - that means almost all Millennials, a group that is set to inherit $30 Trillion in assets
- Investors are increasing pressure for disclosure of climate-related risks and opportunities
- Customers are demanding sustainable business practices
Three-tiered approach:
Strategy
Investor readiness
Innovation
Seek stakeholder input on how a low-carbon economy impacts your business strategy.
Innovation
Investor readiness
Innovation
Discover new markets, new products and technologies to give you the competitive edge.
Investor readiness
Investor readiness
Investor readiness
Know the risks and opportunities that climate change presents and investors expect you to address.