Anthropogenic greenhouse gas (GHG) emissions to date have already committed us to at least 1°C of planetary warming. Because our emissions trajectory means that we will have to cope with the effects of climate change, some of which are already very clear, adaptation and resilience are critical in the fight against climate change. Business must help to provide the solutions that are needed.
Climate change causes more volatile and and more extreme weather events across the globe. This includes floods, droughts, hurricanes and typhoons, along with slower onset phenomena such as rising sea levels and glacial melting. These will impact business operations both directly or indirectly through their supply chains or customers.
Companies agree there is a need to move away from internal policies that are solely reactive. This means we should not wait for extreme climate impacts before we make a change. Instead, we must recognize the business case for being proactive and reduce our exposure to climate risks.
The analysis in Building a Resilient Power Sector and working together in this project demonstrated that electric utilities and their stakeholders can benefit from pooling learning, exchanging best practices, sharing resources and encouraging mutual aid. These will be key to developing new business models, climate modeling, technology developments and managing risk.
Businesses with global supply chains face many diverse, unpredictable and interconnected risks. This climate unpredictability coupled with complexity in modern supply chains means it is challenging to estimate risks. The approach described in Resilience in Global Supply Chains provides guidance to companies to deal with stresses and to manage shocks and build resilience.