New report urges business approach

environment meter A new report from the Pew Center on Global Climate Change, Adapting to Climate Change: A Business Approach, attempts to break down the adaptation challenge into tractable components. Authored by Frances G. Sussman and J. Randall Freed of ICF International, the report builds a clear business case for adaptation, presents a screening process manufacturers can use to assess climate-related physical risks, and provides three case studies of manufacturers and suppliers in the Pew Center's Business Environmental Leadership Council (BELC) that have taken action on adaptation. While adaptation is a new issue for many manufacturers and suppliers, there are some notable exceptions - three of which are highlighted in the report. A New Orleans-based utility, Entergy, suffered $2 billion in losses from Hurricanes Katrina and Rita and as a result has begun relocating important business operations to areas less vulnerable to severe weather events. Entergy also recognizes that, if it goes unchecked, climate change poses long-term risks to the economic viability of its service area and is working with local government agencies and civic organizations to enhance the region's adaptive capacity. Similarly, Travelers, a major property insurance company, is exploring new pricing strategies to encourage adaptive actions from its commercial and personal customers. It is also working with a range of stakeholders to help better integrate climate change science into catastrophe modeling and loss estimates. Meanwhile, mining giant Rio Tinto is using high-resolution climate modeling to conduct detailed site assessments and gauge risks to high-priority assets. Extreme flooding and prolonged drought have emerged as the greatest sources of concern, creating additional justification for the development of a strong water strategy.