City of London’s Adaptation Strategy (Rising to the Challenge)

Acclimatise was commissioned by the City of London Corporation to develop its Climate Change Adaptation Strategy, ‘Rising to the Challenge’, in consultation with stakeholders. The City of London Corporation is the first local authority in the UK to commission a Climate Change Adaptation Strategy, which aims to help prepare the Square Mile for the likely effects of climate change, including risks relating to flooding, water resources, heat, air pollution and ground conditions. In recognition of this and its other pioneering work on climate change, the City of London Corporation has been awarded Beacon Status by the Improvement and Development Agency (IDeA).

Managing the Unavoidable: Understanding the investment implications of adapting to climate change

Acclimatise has assisted with the publication of this report exploring the investment consequences of unavoidable climate by a group of major UK investors. In launching the new initiative, Insight Investment, Henderson Global Investors, RAILPEN Investments, and the Universities Superannuation Scheme, urge investors and companies to address those impacts of physical climate change which are now unavoidable.

This report is the first document to be issued by the group’s collaborative research project, which aims to address the ways in which companies and their investors are likely to be affected.

The report’s key points include:

• Whilst there has rightly been considerable emphasis on reducing greenhouse gas emissions, the lack of attention on the consequences of the now unavoidable impact of physical climate change may have significant long-term implications for companies and their investors.

• Tools need to be developed to aid companies and investors in understanding the risks and opportunities associated with climate change.

• Climate change risks need to be incorporated into investment analysis and decision-making as they may affect the timeframes over which investment decisions are made, and the criteria against which performance is measured.

• Investors need to engage with companies to ensure they have appropriate climate change adaptation systems in place.

• Investors also need to engage with policy makers to ensure the views of long-term investors are taken into account in policy formation in this area.

This report will be followed by four further studies to be produced by Acclimatise highlighting the risks and opportunities faced within specific sectors (electric utilities, oil and gas, real estate and water utilities).

Credit risks impacts of a changing climate

Acclimatise has just published a new report as part of the London Accord project, which explores the credit risk implications of a changing climate across a diverse range of industry sectors:

• Those with long-lived, fixed assets in all sectors,


• Chemicals and pharmaceuticals,


• Fossil fuel and nuclear power generation, supply and distribution,


• Renewable power generation, supply and distribution, and


• Tourism.

Much of the debate around climate change focuses on greenhouse gas emissions and the business impacts of a carbon constrained economic arena. The potential consequences to businesses of a changing climate have, to date, not attracted the same level of attention. This imbalance needs to be redressed. Regardless of the success and rate at which greenhouse gas emissions are controlled, some climate change is locked into the world’s weather system over coming decades and these changes may represent material risks (or opportunities) to business. By implication these impacts may be valid considerations in credit risk analysis.

The London Accord (www.london-accord.co.uk) project is a co-operative research initiative supported by leading investment banks and research houses, major institutional investors and key NGOs and academics. The London Accord project covers 25 papers by more than 40 contributors exceeding 600 pages of comprehensive analyses. Some of the other contributors include Credit Suisse, Merrill Lynch, Morgan Stanley, and ABN AMRO.

The recent Barclays sustainability review highlights its pioneering research with the London Accord – click here to view the case study.

For a very low resolution (1.5MB) version of this document please contact m.colley@acclimatise.uk.com.

Insuring our future climate: thinking for tomorrow, today

Association of British Insurers

This report prepared by Acclimatise with support from Futerra was released in September 2007 as part of the insurance industry’s ClimateWise initiative. The report examines the role of the insurance industry in promoting, encouraging and facilitating actions by its customers and suppliers to reduce greenhouse gas emissions (climate-friendly actions) and manage the risks of inevitable climate change (climate-proof actions). It looks at the opportunities for insurers to develop new products and services addressing climate change and assesses the potential size of these markets.

A technical report with supporting annexes is only available to ABI members.

John Firth fuels rigorous climate change debate at BCSD-UK General Meeting

John was the key note speaker at the UK Business Council for Sustainable Development and left the audience in no doubt that carbon neutral is not climate-proof.

Carbon Disclosure Project Report 2007 USA S&P500

This report is based on the submissions of S&P500 corporations in response to the fifth information request sent by the Carbon Disclosure Project (CDP5) on 1st February 2007.

Carbon Disclosure Project Report 2007 for Global FT500 companies

This report is based on the submissions of FT500 corporations in response to the fifth information request sent by the Carbon Disclosure Project (CDP5) on 1st February 2007.

Adapting to the inevitability of the 40°C city

Town and Country Planning Association (TCPA)

A new ‘Climate change adaptation by design’ guide, produced by Acclimatise for the Town and Country Planning Association, aims to help those working in the built environment sector to respond to the risks and opportunities of a changing climate.

It provides a coherent framework of advice and presents examples of emerging best practice to help delivery and decision-making on climate adaptation.

The Adaptation Tipping Point: Are UK Businesses Climate-Proof?

This report explores why adaptation is becoming an increasingly important issue for businesses, investors and the financial markets as the ‘adaptation tipping point’ approaches. The report was produced in collaboration with UKCIP.

Also covered: exposure areas, key risks, sector preparedness, approaches to embedding climate change impacts into decision making, business resilience to change.

Adapt or Bust

Lloyd’s

Acclimatise contributed to this report, which looks at the issues and impact of climate change and the steps the insurance industry might take to address this problem.