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Many companies internalize the current stalemate over global climate policy into a perception that climate risk is no longer a critical issue. Business climate risks, however, include: *operational and supply chain (physical) risk * brand risk * market-driven structural risk * liability risk This DoShort will help business executives to: *Rethink their perceptions of climate risk* *Evaluate whether their company is effectively positioned* *Make informed and prudent business decisions about climate change risk in an environment rife with policy uncertainty* This book is for anyone who needs to assess and respond to climate risk, including business executives, risk managers, business lawyers, electric utilities, state utility regulators, and facilities and supply chain managers. The book has also been used as course material on a leading executive education course on business climate risk.
Most companies do not yet recognize what it means to adapt to future climate change, and do not yet see it as a business priority. Adapting to Climate Change tackles two key questions facing decision makers: 1) Is adaptation worth it to me? and 2) If it is worth it, can I really tackle it? If a company has reason to worry about the potential impacts of weather on its operations and supply chains, it probably has cause to worry about climate change. However, "adapting to the weather" is not the same as incorporating climate change adaptation into corporate planning. In the former a company is managing conditions they are already experiencing. The latter involves preparing for forecasted impacts of climate change. Focusing on today's weather and not tomorrow's climate leaves a lot of risk on the table, especially if the climate continues to change faster than many climate models have projected. The uncertainties associated with forecasting climate change on a timeframe and at a scale that is relevant to corporate decision making can appear daunting. It is not necessary, however, to have perfect information to advance corporate preparedness for and resilience to climate change. Companies can improve their ability to make robust decisions under conditions of uncertainty without perfect information. A Bayesian approach to reducing uncertainty over time can cost-effectively support companies in understanding and managing many potential climate risks and can avoid the need to depend on future predictions. Instead, initial effort can focus on where a company will have confidence in its analysis and the ability to influence its level of risk, namely in assessing its exposure and vulnerability to climate hazards. As the hazards themselves become more clear, risk management strategies can be quickly adapted.
Abonner på vårt nyhetsbrev og få rabatter og inspirasjon til din neste leseopplevelse.
Ved å abonnere godtar du vår personvernerklæring.