Frozen for thousands of years in Arctic permafrost, billions of tons of carbon and methane are slowly being released into the atmosphere due to rising temperatures. A new study shows that while the release is slow, continued thawing of this permafrost will significantly impact Earth’s climate.
Global trade and transport depend on the resilience of the ports sector. Multi-hazard operational risks are estimated for 2,013 ports under historical climate and future warming; of the marine and atmospheric hazards considered, coastal flooding, wave overtopping and heat stress increase risk most.
Global sea level has risen an average of 0.13 inches (3.3 millimeters) a year since satellites began precisely measuring sea surface height following the 1992 launch of the Topex/Poseidon mission, a partnership between NASA and Centre National D’Etudes Spatiales in France. In the northeastern Pacific off the U.S. West Coast, however, sea level actually fell at a rate of around 0.04 inches (1 millimeter) per year during the 1990s and 2000s.
Reinsurers are well-placed to advise clients on responding to climate change risk. As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, there is now an opportunity for companies to partner with the (re)insurance market and put its expertise to work.
Climate change is complicating two of the most important board responsibilities — its duties to protect long-term shareholder value and oversee risk management, according to Rob Bailey, Director of Climate Resilience at Marsh & McLennan Advantage and Jack Flug, Managing Director, FINPRO at Guy Carpenter-affiliate Marsh U.S. Investors and regulators are paying more attention to how companies are managing climate risks as concerns grow about the risk that climate change poses to shareholder value, with implications for directors.
Increasingly, corporations are expected to report on the physical risks (e.g. wildfires, flooding, extreme storms), and transition risks (e.g. disruptions to their supply chains and potential for stranded assets) they face on account of climate change. We argue that such reporting is not only part of their fiduciary duty, but is part of smart decision-making that will help them to mitigate and hedge against such risks.