“Adaptation needs to be built into planning and risk management now to ensure the continued and improved success of businesses, Government policies and social and environmental operations” Defra Website, 2009.

The Climate Change Act Adaptation Reporting Power gave the Government a power to ask statutory undertakers (such as energy and water companies) and public sector organisations to report on their assessment of the risks climate change poses to them, and the actions they are going to take in response. This power is known as the Adaptation Reporting Power. This will enable the Government to undertake a UK-wide climate change risk assessment, which it must complete every five years. In addition, the Government will be ‘inviting’ a number of strategically important companies that contribute to the UK’s day-to-day operation to report. This process will be overseen by the Adaptation Sub-Committee, part of the independent Committee on Climate Change.

BITC Seminar, 18th March 2010

Business in the Community, IBM and Acclimatise recently hosted one of the first seminars in the UK focussed on the Reporting Power.

The seminar included a number of important speakers on this subject, including:

(Click on a speaker’s name to access their presentation)

• Helena Busby, Defra
• Michael Lord, Environment Agency
• Seb Beloe, Henderson Global Investors
• Dr Chris West, UKCIP
• John Firth, Acclimatise
• Cathy Pickering, IBM

Many of the participants commented on the usefulness of the seminar and reconfirmed the importance to businesses of managing climate risk today and in the future. Overall the seminar was seen as a great success and a first step for many in meeting the requirements of the Adaptation Reporting Power.

How we can help you…

Acclimatise offers world-class expertise in climate change risk assessment and management. We provide practical advice and have access to a portfolio of tools (including experience of using UKCP09, the most up-to-date climate projections for the UK). Moreover, we are UK leaders in risk assessment services, risk intelligence products and disclosure/ reporting for private and public sectors, all in relation to climate change adaptation.

Acclimatise is fully aware of the benefits of assessing and reporting on climate change risks for an individual organisation, however there are a number of other issues that need to be carefully considered and address during this process. This is where our advice is crucial. For example are you aware of the potential:

• Effects on investors’ rating of your organisation?
• The knock-on effects for insurance premiums?
• Risks and opportunities for reputation and brand equity?
• Changes in relationships with regulatory bodies?
• Issues around Integration with other business systems?
• Effects on financial performance?

We are fully conversant with the statutory guidance on the Adaptation Reporting Powers and can provide a cost-effective and concise report that meets or surpasses the Government’s requirement on reporting your organisation’s climate change risks and management steps. We can also manage the submission and review process for you.

Acclimatise is working closely with numerous organisations in a variety of sectors including the energy, oil and gas, transportation, food, retail and water sectors, as well as with banks, pension funds, fund managers and insurers. Examples of how we have been able to help organisations assess and manage climate change risks are included in our case studies section.

Consultation analysis

Acclimatise has conducted analysis on the responses to the Defra ‘Consultation on The Climate Change Act Reporting Power’ (which ran between 18th June until the 9th September 2009).

Our analysis provides a unique insight into how each sector is positioned in terms of how they view risks and incorporate them within existing processes, the different methods that organisations currently use to incorporate climate change into their decision making, and the resources currently spent in assessing climate change risks.

For access to these data (available February 2010), or for more information on The Climate Change Act Reporting Power and how we may be able to help your organisation, please email Alastair Baglee, Technical Director at Acclimatise on a.baglee@acclimatise.uk.com or call 07947 586934.