Mott MacDonald and Anglia Ruskin University's Global Sustainability Institute (GSI) have published a report making clear that building climate resilience is essential to future business survival; and that doing so will also bring commercial opportunity.
The report entitled 'Climate change and business survival' projects that within 20 years US$200bn of investment each year will be needed globally to combat US$1trn of losses from climate impacts. A third of this is likely to offer strong returns on investment. The balance will need more innovative public-private finance.
Investing in improved protection and better emergency planning will enable businesses to cut potential losses by half, and the most resilient organizations will be able to rebound swiftly from climate impacts, outcompeting less resilient rivals.
However, the report also highlights a US$130bn per annum global funding gap. This represents resilience and adaptation measures to protect against social and environmental losses. Tackling them will offer only a marginal direct business benefit, but is essential for business continuity as climate change worsens.
'Climate change and business survival' sets out the importance of:
- Recognising the escalating risk posed by climate events and taking action to build resilience.
- Understanding the need for investment in resilience to maintain business continuity and competitiveness.
- Collaborating with public and private sector partners to find new ways to finance protection and adaptation.
- Addressing climate impacts alongside 'business as usual' strategic, risk management, policy and regulatory, contractual and investment planning.
- Fostering the culture shift that will be required to build resilience.
The report is aimed at leaders and decision makers in business, financial institutions and government. It is intended to inform discussion and elicit action that will enable them to protect investment, productive capacity and service quality, reduce risk and sustain profitability.
Read the report (PDF).