Companies have a key role to play in building societal resilience to crises, including the current pandemic and climate impacts, across their value chains. Some priority actions businesses can take to build resilience include conducting supply chain risk assessments; understanding future scenarios; and understanding how the people in business and vital communities are affected.
What will the Earth look like thirty years from now? To a discomfiting extent, the future has already been written. Yet it is difficult to predict with any degree of certainty how hot it might get, and precisely what the corresponding consequences will be. This is why the scenarios that Riskthinking.Ai has developed, which not only enable the exploration of different plausible futures, but price climate-related financial risk, are so valuable.
Climate-related impacts such as the wildfires in the western United States will only become more severe if we allow the worst-case scenario to unfold by 2100. A new EarthTime visualization shows just how hot the world may become in 2100, within the life expectancy of today’s tween, 10-12-year olds.
A report commissioned by federal regulators overseeing the nation’s commodities markets has concluded that climate change threatens U.S. financial markets, as the costs of wildfires, storms, droughts and floods spread through insurance and mortgage markets, pension funds and other financial institutions. Riskthinking helps decision-makers better understand the climate-related financial risks they face and respond accordingly.
A Nordic hedge fund worth more than $90bn (£68.6bn) has dumped its stocks in some of the world’s biggest oil companies and miners responsible for lobbying against climate action. As divestment becomes increasingly common, as well as other efforts to usher in low carbon energy transitions, the need for accurate pricing of climate and transition risks to stress test portfolios becomes all the more apparent.
The success of responses to COVID-19, and other global threats for that matter, hinges on the ability of humans to rapidly learn and change their behaviour. Riskthinking.ai’s forward-looking scenarios tools help decision-makers better understand the risks, and related costs, they face when it comes to threats like a global pandemic, and identify the kinds of behaviours and supportive policies that will have the biggest positive impact.
The asset manager, BlackRock, provided clients with a new report outlining how it is ramping up its climate-related engagements with businesses this year. According to the report, 244 of the companies in BlackRock’s portfolios are making insufficient progress integrating climate risks into their business models and/or disclosures, of which 53 have repeatedly ignored the climate-related demands of investors. As a result, BlackRock took voting action against them. This is a strong indicator of a growing expectation for corporate accountability when it comes to climate change, and the corresponding need for climate-related financial disclosures, for which Riskthinking.ai scenarios-tools were designed.
The Anthropocene is nothing if not disorienting. Things that once seemed immutable—polar ice caps, songbird migration routes, even the onset of spring—are now on the move. So how do we think about our place in a geographically altered future? A map is a good place to start. We’re accustomed to looking at maps that depict the world as it is, but cartographers of the Anthropocene are beginning to illustrate what may be—in the near and distant future. As climate change scrambles geographies, they are asking: Which parts of the world will humans find habitable in 50 years? How will species’ ranges shift? How might we think about urbanization and globalization? With maps in hand, we boldly go.
On the heels of an unprecedented wildfire season, climate is yet again a hot topic in Australia. In a new study, researchers examine the performance and projections of the latest generation of global climate models for the Australian continent.