Climate impacts on investors spotlighted in Forbes
- 04 April 2014
LONDON: Leading financial publication, Forbes, has today devoted coverage to the risk climate change poses to economic growth and argues that companies cannot afford to ignore the climate debate if they wish to remain competitive.
The piece was prompted by the publication this week of the UN’s Intergovernmental Panel on Climate Change (IPCC)’s Fifth Assessment Report (AR5) on climate change - the most comprehensive study to date on the impact of global warming. ‘Climate Change 2014: Impacts, Adaptation, and Vulnerability’ critically analyzed how human led climate change is affecting our natural resources, communities and global economy.
The UN’s researchers concluded that merely adapting to climate change will not be cheaper than mitigating future warming and cautioned that the cost of climate change is considerably higher than was previously believed.
Forbes reporter Mike Scott expanded on this point and observed: “Its impacts will extend to all parts of the economy and it will affect not just companies and their employees but how much those workers will see in their pension pot when they retire.”
Mark Kenber, CEO of The Climate Group contributed to the piece, where his comment focused on the gains the low carbon economy presents. “The ‘head in the sand’ approach is a ticket to failure. Businesses that refuse to adapt are sealing their own fate and putting communities and investors at risk. They’re also wantonly squandering the massive opportunities in low carbon growth.
“The only road that leads to both a reduction in carbon emissions and economic growth is one built on a clean industrial revolution. This means investing and innovating now in large scale renewable deployment, energy efficiency, new finance mechanisms and low carbon business models,” Mr. Kenber added.
“Most of the energy and technology solutions needed already exist, but need rapid scaling up today not tomorrow. For in the long term prevention will be a lot cheaper than the cure.”
Read the latest IPCC Working Group II report
By Alana Ryan