Businesses are urged to build resilience to climate change impact

Businesses are urged to build resilience to climate change impact

Businesses are urged to build resilience to climate change impact

The FINANCIAL -- The likely failure of efforts to meet internationally agreed targets for global warming require businesses to act now to adapt to the risks related to climate change.

With measures to slash greenhouse gas emissions set to miss their mark, businesses should act now and prepare for a changing climate, according to a report by Zurich Insurance Group. Published ahead of Climate Week NYC, a gathering of investors, governors and CEOs in New York this week, it recommends a three-step strategy to help companies strengthen their defenses.

The report, ‘Managing the impacts of climate change: risk management responses,’ provides risk management tools, and outlines approaches and best practices to help businesses respond to the growing threat of climate change.

The report examines two scenarios: one based on the failure to act on climate change, resulting in a steady rise in temperature and rising physical risk; the other assumes that effective measures are taken to reduce carbon emissions, with increasing transition risks to be managed in the shorter term.

It also details three steps companies can follow to develop a climate resilience adaptation strategy:

Identify the broad business and strategic risks;

Develop a granular view of the risks including individual locations;

Develop a mitigation strategy involving insurance and resilience, as well as strategic implications for business models.

Scientists agree that climate change will likely lead to more intense hurricanes with higher rainfall amounts and rising sea levels, which will result in more dangerous storms surges and flooding. As a risk management expert, underwriter and investor, Zurich understands the risks of climate change and supports the transition to a low-carbon economy.