Business Climate Resilience

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Business Climate ThrivingResilience Through the Transformation 2 2 ThrivingThriving Through Through the the Transformation Transformation BusinessBusiness Climate Climate Resilience: Resilience: Contents

Foreword | 4

Executive summary | 6

Resilience | 8

1 How the urgency of climate change will shape global system transformation | 9

2 Building business climate resilience | 13

3 Practical steps to achieve business climate resilience | 19

4 Call to action for businesses | 22

5 Call to action for policymakers | 27

Thriving Through the Transformation 3 Business Climate Resilience: Foreword

Message from Sunny Verghese CEO of Olam and Chair of WBCSD

It is becoming impossible to While we must continue to Climate risk is something we all deny the devastating effects implement every possible effort face, no matter our geography, that climate change is having to limit global warming and sector or socioeconomic status. on society, the environment and - reduce emissions at the proper It is global in nature and will increasingly - on the economy. speed and scale - we also need impact every single one of us in to focus on adapting to the one way or another. Taking the Even though the world has made changes that are already here, appropriate steps to prepare some progress through the while simultaneously preparing and adapt will be critical for any Sustainable Development Goals for the significant environmental, business who wants to continue and the Paris Agreement, current regulatory and economic operating past 2050. global emissions reductions changes that are likely to emerge targets will still result in 3.3°C in the near future. It is our sincere hope that this of warming by 2100, according report helps propel you forward to the IPCC. As Chairman of the World on your company’s journey to Business Council for Sustainable resilience. This will have catastrophic Development, I am encouraged impacts. to see our members taking climate resilience seriously The world has already warmed through the release of “Thriving 1°C above pre-industrial levels, through the transformation” - and we are already seeing designed to provide a common impacts on people, biodiversity, vision and language for what crops and our planet more “climate resilience” means to widely. As the climate continues business and the role the private to change, negative effects will sector has to play. intensify. Many are taking action to mitigate the impacts of climate The work brings together change. important global developments Sunny Verghese on adaptation and resilience CEO of Olam and Chair of WBCSD Over the past five years, business - such as new, fit for purpose has dialed up efforts to address frameworks for enterprise risk the climate challenge, taking management, as well as the strong steps towards reducing Task Force for Climate-related emissions to limit warming in Financial Disclosure’s (TCFD) key line with the goals of the Paris recommendations - in order to Agreement. help business understand the importance of building climate resilience while outlining initial steps for doing so.

4 4 ThrivingThriving Through Through the the Transformation Transformation BusinessBusiness Climate Climate Resilience: Resilience: Thriving Through the Transformation 5 Business Climate Resilience: Executive summary

The climate emergency is a Adaptation clearly delivers a triple There are three key steps that present-day reality. The world dividend in terms of avoided businesses can take to build has already warmed 1°C above losses, economic benefits and business climate resilience: pre-industrial levels and we are social and environmental benefits. on track to surpass a 1.5°C global 1. Develop and maintain temperature rise as soon as 2040.1 Ambitious mitigation is crucial to ambitious mitigation efforts. reducing long-term climate costs. If a business makes progress in Already, climate change has This ambition will translate into the its mitigation efforts, it becomes displaced over 22.5 million people; deep and systemic transformation less vulnerable to disruptive more than 800 million people of global economies and risks, such as policy and legal lack sufficient food; and over one associated business activity. It will measures, resource scarcity or million animal species are facing require reprioritizing economic adverse market developments. extinction. issues according to the magnitude of change that is required, the 2. Adapt to ensure business continuity in the face of There is an urgent need for interconnected risks across our climate-related physical governments and the private global systems, and the urgency risks. Businesses must assess sector to take bold climate of a rapidly diminishing timeframe. and evaluate climate-related action. This is a critical physical risks throughout their necessity in order to reduce Successful businesses will be operations, supply chains and emissions drastically, and to those that are able to adapt across the communities in make the transition to a net-zero to and thrive through this which they operate. emissions world that is aligned transformation. with the 1.5°C scenario of the Over the past year, WBCSD has 3. Assess the connections, Paris Agreement. been working with the business dependencies and value The report from the Global community on their imperatives to society and nature. Commission on Adaptation for climate resilience. Companies The connections, dependencies (September 2019)2 highlights need to prepare for both the and interrelationships between three key imperatives for action: physical risks that are associated climate and society, climate with climate change, as well the and nature and climate and 1. the human imperative that calls associated transition risks on sustainable development will for adaptation for all people; the path to an economy that is increase public pressure on net-zero greenhouse gas (GHG) the true purpose of business 2. the environmental imperative to emissions. Businesses need to activities and the role of reverse the current degradation integrate their climate change business in society. of the natural environment; and risks into their Enterprise Risk 3. the economic imperative, which Management processes, and shows a cost-benefit ratio of factor climate action into their investing in resilience from decision-making processes. between 2:1 and 10:1.

6 Thriving Through the Transformation Business Climate Resilience: Key takeaways

1 Enterprise risk management and transformation to resilient business models are key elements in building business climate resilience.

Delivery of the Paris Agreement objectives and the Sustainable Development Goals depends 2 on our ability to connect climate, nature and people to assure a resilient future for business and society.

The urgent response to climate change will inevitably lead to a reprioritization of economic 3 activities.

Business climate resilience focuses on understanding, assessing and acting – based on physical 4 and transition climate-related risks.

Companies need to adopt resilience strategies that include ambitious mitigation measures to 5 adapt to climate change impacts, as well as steps to strategically transform so that they can benefit from new opportunities and address unprecedented risks.

CALL TO ACTION FOR BUSINESS CALL TO ACTION FOR POLICYMAKERS

Understand and assess business risks Collaboration between governments and business to achieve net zero emissions

Put resilience at the core of business strategy Creation of adaptation and resilience plans, including regulatory instruments that support resilient economies

Scale up investment in mitigation efforts Strong policies that provide clarity and confidence alongside efforts to adapt for businesses to invest in climate action

Communicate with stakeholders Policy measures supporting TCFD implementation including carbon pricing

Work with others Data to support business decision-making

Advocate for climate resilience Capacity building

The case for adaptation and The urgency of the climate This report is a call for action resilience is clear. However, action emergency demands clear to the business community in this field is not taking place at leadership and strong to double down their efforts the immense pace and scale that collaboration. Governments on building resilience. It is a is required. and the private sector have a call to action for the public crucial role to play. sector to strengthen win-win collaborations with the private sector as well. It is only by working together that we can adapt and increase our resilience.

Peter Bakker María Mendiluce President and CEO, WBCSD Managing Director, Senior Management Team, WBCSD

Thriving Through the Transformation 7 Business Climate Resilience: Resilience

2020 will be a “super year” in the The Intergovernmental Panel on The concept of resilience as climate agenda bringing focus Climate Change (IPCC) defines it relates to the Task Force to the climate emergency. resilience and adaptation as on Climate-related Financial follows: Disclosures (TCFD): As the year in which ambition Resilience: The capacity of social, Climate resilience requires and performance against economic and environmental organizations developing adaptive the Paris Agreement will be systems to cope with a hazardous capacity to respond to climate assessed, there are a number of event or trend or disturbance, change to better manage the major scientific and economic responding or reorganizing in associated risks and seize reports which are sounding a ways that maintain their essential opportunities, including the ability clear alarm on the urgency to function, identity and structure, to respond to transition risks and act now to ensure delivery of a while also maintaining the capacity physical risks. 1.5°C degree world. for adaptation, learning and Opportunities include improving At the same time, climate transformation. efficiency, designing new resilience is being increasingly Adaptation: In human systems, production processes, and framed within the need to also the process of adjustment to developing new products. protect nature and achieve actual or expected climate and its Opportunities related to resilience resilient communities. Indeed, effects, in order to moderate harm may be especially relevant for the delivery of the Sustainable or exploit beneficial opportunities. organizations with long-lived fixed Development Goals (SDGs) In natural systems, the process of assets or extensive supply or depends on our ability to adjustment to actual climate and distribution networks; those that connect climate, nature and its effects; human intervention may depend critically on utility and people to assure a resilient facilitate adjustment to expected infrastructure networks or natural future for all. climate and its effects. resources in their value chain; and With this report, we aim to clarify those that may require longer-term the concept of “business climate financing and investment. resilience” for policymakers and companies specifically within the global climate agenda. The goal is to provide stakeholders Long-term transformative scenarios need to be an integrated with a common language and the part of business strategies, or companies will soon become principles for effective climate action that build resilience, irrelevant. Businesses who already have a long-term vision are recognizing its connection to going to be the champions of tomorrow. nature and society. We also highlight current corporate

approaches to climate resilience Joyashree Roy – underlining strategic actions IPCC author, and Bangabandhu Chair Professor companies and policymakers can at Asian Institute of Technology (AIT), Thailand take. and Professor of Economics at Jadavpur University-online

8 Thriving Through the Transformation Business Climate Resilience: 1 How the urgency of climate change will shape global system transformation

Thriving Through the Transformation 9 Business Climate Resilience: 1 How the urgency of climate change will shape global system transformation

ambitious enough, and their However, mitigation and The 2018 Special Report from implementation still not advanced adaptation present different the Intergovernmental Panel enough, to achieve the long-term challenges. Mitigation is a global on Climate Change (IPCC) goals of the Paris Agreement. challenge while resilience and on the impacts of global 3 adaptation require addressing warming of 1.5°C made a clear The world is on track to exceed impacts and risks that have the statement: While achieving a 1.5°C warming as soon as 2040. potential to be much more diverse limitation of global warming to Projections show that current and localized. For business, 1.5°C is possible, economies policies will lead to total global this means developing and and societies worldwide warming of 3.3˚C by 2100. implementing mitigation strategies must undergo rapid and far- and targets at the global level (e.g., reaching transformation at The urgent need for climate net zero emissions targets), while unprecedented speed and scale. action demands leadership also addressing local risks affected from governments and the The Paris Agreement reached in by climate change, including water, private sector to achieve urgent 2015 is a major milestone in the nature and just transitions for emissions reductions and global response to the climate communities, both for operations transition to a decarbonized challenge. Its central aim is to and sourcing strategies. strengthen the response to the world. This translates into the climate change threat by keeping need for deep and systemic Thus, businesses of all sectors the global temperature rise well transformation of economies below 2°C above pre-industrial must approach climate change and associated business systemically, changing their levels by 2100 and to pursue activities globally. efforts to limit the temperature overall business strategy to increase even further, to stay The private sector has a crucial better understand, anticipate within 1.5°C warming. role to play. and navigate new risks and Companies need to opportunities. Doing so will To achieve this, governments set prepare help businesses that are the nationally determined targets and for both the physical risks most prepared to not just long-term strategies designed to associated with climate change as well the associated survive but to thrive through the achieve overall decarbonization transition transformation. of the global economy. However, risks on the path to a net- these commitments are still not zero greenhouse gas (GHG) emissions economy.

10 Thriving Through the Transformation Business Climate Resilience: 1. Businesses must incorporate The urgency is clear: governments, CLIMATE CHANGE climate change challenges into businesses and civil society must IS NO LONGER JUST Enterprise Risk Management drastically raise their climate A RISK, IT’S A REALITY (ERM), and will have to learn ambitions if the world is to stay The next ten years will be critical to develop decision-making within the 1.5°C safe operating to limit global warming to 1.5°C processes in a changing climate. space for society and the as the global effort to address environment. 2. climate change must accelerate AMBITIOUS dramatically. Thus, “business as usual” is MITIGATION IS CRUCIAL incompatible with addressing The 2018 IPCC Special Report TO ACHIEVING TARGETS the climate challenge. has provided clear scientific AND REDUCING LONG- Systems transformation is inevitable understanding of the current and TERM CLIMATE COSTS and smart companies are starting to potential future impacts of climate GHG emissions continue to prepare for the transition risks and change, as well as the urgency rise globally. opportunities as defined by the Task for governments, society and Force on Climate-related Financial business to act. For the first time in human history, Disclosures (TCFD).7 carbon concentrations in the The frequency and intensity of atmosphere reached 415 parts Major companies across the tornadoes, floods and droughts per million (ppm) in early 2019. chemicals, electric utilities and oil are increasing direct physical The latest research show that the and gas sectors are implementing risks to human lives and health, gap between actual emissions the TCFD recommendations and infrastructure and buildings, as well and the world’s carbon budget, taking steps to publicly share as indirect risks to the stability of derived from the Paris Agreement their experiences in doing so. a region or country.4 objectives, is wider than ever. Leading food, agriculture and forest Unless the private sector is products companies are preparing As stated by UN Environment prepared, it will suffer. According now for TCFD. The goal is to help in the findings of its Emissions to CDP, 215 of the world’s 500 drive further implementation within Gap Report 2018, “the technical largest companies could see and across sectors. feasibility of bridging the 1.5°C USD $1 trillion in potential costs gap is dwindling.”6 over the coming decades.5 The scale and urgency of action needed is set to trigger reprioritization of economic activities. Figure 1:

Historical global CO2 emissions Pathways <2°C

Limited resources

Short REPRIORITIZATION timing

Magnitude of change

1930 2020 2100

Note: Emission reduction trajectories associated with a 66% chance of avoiding more than 2°C warming by starting year. The solid red line shows historical emissions. Data and chart design from Robbie Andrew at CICERO and the Global Carbon Project.

Thriving Through the Transformation 11 Business Climate Resilience: Additionally, banks such as BNP 3. 3c. Connectivity and REPRIORITIZATION OF The Paribas have stated that they will relationships: ECONOMIC ACTIVITIES connections, dependencies decrease their financing in sectors WILL BE DRIVEN BY and interrelationships between not aligned with a 2°C scenario nature and climate, climate (for instance through sectoral MAGNITUDE OF CHANGE, and society, and climate and policies on coal and unconventional URGENCY OF THE SHORT sustainable development highlight Oil & Gas). TIME FRAME AND THE the imperative for business to understand broader impacts It’s clear that economic INTERCONNECTED RISKS and dependencies. The low- reprioritization will likely favor ACROSS SYSTEMS carbon transition must be just the most sustainable option, Civil society and recently-launched and equitable, prioritizing people, supporting systems transformation. social initiatives, especially by our social security, development and Successful businesses will youth, are well-being. It is also necessary to calling louder than be the ones that are able to , understand resource constraint ever for global climate action adapt and thrive through the stressing the implications given the vital and urgent need and transformation. of governments irreplaceable role of nature. responsibility and businesses to transform and 5. decarbonize the global economic ASSESSING 4. system. UNLOCKING AND DE- MATERIALITY AND RISKING INVESTMENTS ACTING ON BUSINESS This will lead to a reprioritization IN SUSTAINABLE RISKS IS A PRIORITY of economic activities driven by There is a clear push for innovative policy change, consumer habits SOLUTIONS REQUIRES solutions and strategies to and business action. FINANCING According to The New Climate encourage business climate action Business has a vital role to play Economy, “The world is expected that simultaneously supports in taking the lead to ensure their to invest about USD $90 trillion on emissions reductions and increases climate actions can have the infrastructure in the period up to business climate resilience while greatest impact for the future of 2030, more than the entire current preparing for the likelihood of their business and beyond. stock today. increasing climate risks ahead. Three main drivers are likely to “Much of this investment will be Specific frameworks like kickstart this reprioritization across the programed in the next few years. COSO and WBCSD framework9 the business sector: for applying enterprise risk “[Investing in] the right management to environmental, 3a. The expected magnitude of infrastructure now will deliver a new social and governance (ESG)- With escalating physical change: era of economic growth … drive related risks help companies risks and the unprecedented innovation, deliver public health identify and manage new risks call for action on mitigation, benefits, create a host of new jobs and opportunities, including those companies will increasingly feel and go a long way to tackling the related to climate change. pressured to rapidly decarbonize risks of runaway climate change.”8 while implementing adaptation The TCFD framework10 provides a plans. The finance sector has increasingly clear pathway to help companies recognized the risks and disclose how they’re managing To align 3b. The short timeframe: opportunities associated with these physical and transition with the decarbonization pathways climate change. For example, rating risks and pursuing low-carbon of the Paris Agreement, the global agencies such as S&P Global have opportunities – clarifying where economy will need to reduce conducted extensive assessments they may be more exposed or more emissions by 50% by 2030, with a of potential impacts on business resilient. goal to becoming carbon neutral across all sectors exposed to before 2050. This will urgently physical risks and transition risks Additionally, implementing require substantive strategic 11 is a associated with climate change. Science Based Targets changes, rapid innovation and tool for companies to set clear great investments with high targets and pathways for reducing impact and at scale. emissions in line with the Paris Agreement and the 1.5°C target.

12 Thriving Through the Transformation Business Climate Resilience: 2 Building business climate resilience

Thriving Through the Transformation 13 Business Climate Resilience: Business resilience to climate = + change is about preparing for RESILIENCE CONTINUITY TRANSFORMATION the physical risks associated of business to withstand of business models with climate change while at to climate the physical and activities to the same time shifting to a net- 12 change impacts align with a net-zero zero emissions future. A truly emissions economy resilient business also works to protect nature and achieve resilient communities. Climate resilience is important for

all sectors of the economy, but it 14 will look and feel different across TCFD climate-related risks industries and activities. For Climate change will lead to risks and opportunities linked to policy example, the agri-food sector and and market shifts (transition risks), as well as physical changes to water-intense industries are highly the environment. vulnerable to physical climate- and nature-related risks and equity Transition risks/opportunities of rural communities. The energy The transition to a low-carbon economy may entail extensive policy, sector’s challenges are in ensuring legal, technology and market changes to address climate change security, equity and sustainability; mitigation and adaptation requirements. Efforts to mitigate and adapt the built environment is facing to climate change can also produce opportunities, for example, new demand for sustainable and through resource efficiency and cost savings and the development functional structures that can of new products and services. withstand climate-related impacts.

This section details a new framing Physical risks of climate resilience that applies Physical risks resulting from climate change can be acute (e.g., specifically to business and draws extreme weather events) or chronic (e.g., sustained higher on the TCFD’s categorization temperatures). Physical risks may have financial implications for of physical and transition risks companies, such as direct damage to assets and indirect impacts associated with climate change from supply chain disruption. (see TCFD climate-related risks box).13

In a time of climate emergency, These measures are crucial it’s important for businesses COMPANIES SHOULD for business continuity as they to move beyond responses to PREPARE TO WITHSTAND constitute an approach to the extreme weather events and THE PHYSICAL RISKS OF physical risks of climate change – supply chain disruption and CLIMATE CHANGE. adding to direct climate resilience consider the transformational The first aspect of business actions. changes and associated resilience is related to continuity. transition risks needed to Physical climate change risks can achieve climate resilience. Continuity planning, linked to have a significant impact on basic In other words, business plans for risk severity and likelihood, put economic system functions. climate resilience must include plans in place for a company to All sectors depend directly or both managing the physical risks withstand and absorb climate indirectly on the provision of key of climate change (e.g., building shocks, recover and then economic system functions and recovery capacity to extreme return to normal operations Specific access to the infrastructure that weather events), to integrating as soon as possible. actions to enhance continuity enables them, such as electricity, active, strategic and meaningful can include developing sourcing water, roads and the internet. transformation to net-zero and operational contingencies, emissions. implementing infrastructure EDF Group, a major electricity protection, creating flexible and company, has put in place a adaptive supply chains, and set of adaptation policies to predictive analysis for future minimize climate change shocks shocks. on its utilities and distribution infrastructure. It has also developed strong meteorological and climate services to anticipate climate impacts.

14 Thriving Through the Transformation Business Climate Resilience: To guarantee a higher degree of COMPANIES MUST reliability, adaptation and flexibility, MAKING THE TRANSFORM TO companies will often need TRANSITION ADDRESS TRANSITION innovative and disruptive solutions. MEANINGFUL FOR RISKS AND SEIZE NEW KEY STAKEHOLDERS As a result, companies may plan OPPORTUNITIES AS to – or may ultimately be forced to – BEYOND THE COMPANY. THE ECONOMY STRIVES transform their business models. Business has a significant role TO ACHIEVE CARBON to play in helping deliver the

NEUTRALITY. Transformational measures will Sustainable Development Goals (SDGs) which help translate As climate change impacts always need to involve the strategic planning function and should apply sustainable development increase, major environmental, priorities into business strategies. social, cultural and economic to business models and strategic direction. In doing so, the SDGs enable shifts will occur, fueled by the companies to better manage their reprioritization of economic Business must therefore consider risks and unlock opportunities. activities. Business as usual will different time horizons and both no longer be a viable option. Business activities should foster physical risk management and further societal development This reprioritization comprises a strategic development aligned with and support the functions and proactive approach to resilience resilience and net-zero emissions. resources provided by nature. that considers long-term strategic changes supporting system Those who thrive will be able The Stockholm Resilience Centre transformation. to connect both physical highlighted that the health of and transition risks and the biosphere – that is, the Companies will need to consider opportunities to business environment – is the basis on 15 the various risks associated with actions and strategies. which all the other SDGs sit. the transition, including public This connects all 17 SDGs, opinion, investor sentiment and making nature critical to ensuring responses to differential costs, resilience. competitor behavior, and actions To become truly resilient, taken by other sectors companies will need to help or governments. ensure the success and vitality of the environment and communities in which they Figure 2: In the transition to a climate resilient world, economies and societies operate. must be seen as embedded parts of the biosphere. (© Azote Images for Stockholm Resilience Centre) Business resilience strategies should also consider relationships and interdependencies across systems and beyond the The aim should company itself. be to contribute to wider socioeconomic and environmental benefits across the board.

Thriving Through the Transformation 15 Business Climate Resilience: CASE STUDY

In 2018, launched a center for marine biodiversity and coastal ecosystem Tata Chemicals conservation in India. Through this project, Tata is increasing its knowledge of ecosystems that are an integral part of its business model and at the same time preserving and restoring those ecosystems.

promotes the achievement of the 17 SDGs by aligning its own strategy with them. It has Enel the ambitious goal of and the related steering the energy transition electrification of energy through all facets of the “future of energy”: efficiency, flexibility, digitalization, electric consumption mobility and the integration of renewable energy, and the role of customers.

While Enel is actively working on mitigation, it is also transforming itself for the greater good of society by actively engaging in the circular economy. Enel has made the circular economy a driver of its strategy, setting out a global vision and developing concrete actions for its business lines in various countries. For instance, Enel Green Power has combined the group’s approach to the circular economy with its own activities, focusing on the reuse, recovery and recycling of materials during work site, plant and office management phases.

CASE STUDIES ON THE AGRICULTURE SECTOR

The WBCSD and Opus Insights agri-tech Olam, a leading food agribusiness, has initiative, CocoaCloud, aims to provide developed AtSource, a sustainable critical data for farmers and industry.16 sourcing solution designed to promote With the target of reaching one million the long-term resilience of agricultural farmers in Ghana and Côte d’Ivoire by 2024, raw materials and food ingredients.17 the generates, CocoaCloud data platform In 2018, Olam International launched translates and disseminates critical 18 – a sustainable and traceable AtSource information – such as weather forecasts sourcing solution that provides unrivalled and location-specific agricultural advice – environmental and social insights into the supporting “climate-smart” decisions for journey of agricultural raw materials and food agriculture. ingredients from the farm to manufacturing and retail customers. The impact initiative already supports 7,500 cocoa farmers, extension advisors and wider AtSource will also enhance Olam’s ability community members in the western region to assess and positively influence the of Ghana by providing training and localized environmental footprint of the 4.8 million weather forecasting services (including farmers in the company’s supply chain, mobile phone alerts), enhanced by four the vast majority of whom are smallholders weather stations installed locally in 2018. growing crops such as cocoa, coffee and cashews in emerging markets.

16 Thriving Through the Transformation Business Climate Resilience: CASE STUDY

DSM Climate Change is at the core of DSM’s business model driving innovation, risk management and growth. Feike Sijbesma, DSM’s CEO, strongly believes the company cannot succeed or call itself successful, in a world that fails. For DSM, combating climate change is not just a responsibility but also a business opportunity and essential part of future-proofing the business. The company’s climate agenda is structured around three core areas, addressing both ambitious climate mitigation efforts and accelerated climate adaptation, by:

the carbon footprint from DSM’s operations and value chains to meet the 1. improving company’s NetZero by 2050 target, and working to assess and protect DSM’s assets and value chains from emerging climate-related physical risks. This includes transparency on the progress and working towards TCFD aligned reporting.

customers to reduce their emissions by developing low-carbon solutions, 2. enabling and providing solutions aimed at supporting societies’ ability to adapt to the adverse effects of climate change.*

for accelerated climate action and long-term policies, particularly related 3. advocating to renewable energy and meaningful carbon pricing, but also long-term climate-smart investments, collaboration between actors and better transparency on climate risks as mainstreamed climate risk and opportunity assessment are key for ensuring that financial flows are directed appropriately. DSM and DSM’s CEO Feike Sijbesma is actively engaged and leading in several business networks for climate action, including acting as a Commissioner for the recently established Global Center on Adaptation.

DSM’s climate agenda demonstrates how companies can integrate climate action into their business strategy in order to increase both resilience and competitiveness.

“Research is showing that adapting to climate change is a real competitive advantage for businesses. Transition opportunities really help companies since climate change drives innovation.” “By improving the impact of our own operations, enabling sustainable solutions for our customers and advocating sustainable business, we can grow faster and reduce our cost and risk profile”

Jeff Turner Vice President Sustainability, DSM

* Examples of DSM innovations with significant emissions reduction potential are Clean Cow, a feed additive that reduces 30% methane emissions from cattle and Niaga®, technology for fully recyclable carpets and mattresses. DSM solutions provide also solutions improving society’s’ resilience. Together with Syngenta DSM has developed microbial-based agricultural solutions including bio-controls, bio-pesticides and bio-stimulants, which can prevent increase of food loss in rising temperatures combat resistance and enhance plant productivity and fertility. These also include applications of DSM advanced materials to protect infrastructure and buildings and-DSM advanced Solar solutions increasing energy resilience in increasingly demanding climates, as well solutions compensating the nutrition value loss of crops caused by climate change, such as Supercereal+ and fortified rice.

Thriving Through the Transformation 17 Business Climate Resilience: 18 18 ThrivingThriving Through Through the the Transformation Transformation BusinessBusiness Climate Climate Resilience: Resilience: 3 Practical steps to achieve business climate resilience

This section outlines practical Business climate resilience Business leaders who effectively steps that companies can take means developing and address all three can realize to understand where they are and implementing strategies which unprecedented transition where they can make progress address: opportunities and mitigate along their resilience journey by climate-related risks. linking three concepts: 1. Mitigation mitigation, adaptation and transformation. 2. Adaptation

3. Transformation

FORM NS AT RA IO T N

Cultivating and sustaining INCREASE VALUE climate resilience is TO SOCIETY AND commensurate with sound ENVIRONMENT business practice. Beyond bolstering the long-term competitiveness of companies, it helps them to establish new and constructive connections with surrounding communities, and to forge new levels of RESILIENCE adaptive collaboration across s e businesses facing similar a c fe a o sp climate impacts. perating INCREASE DECREASE

A CONTINUITY N GHG D TO PHYSICAL O I A EMISSIONS IMPACTS T P A Youssef Nassef T Director, Adaptation programme, A IG TI IT UNFCCC secretariat ON M

Thriving Through the Transformation 19 Business Climate Resilience: 1 2 3

DEVELOPING AND BUSINESS MUST ADAPT BUSINESSES MAINTAINING AMBITIOUS TO ENSURE BUSINESS MUST ASSESS THE MITIGATION EFFORTS IS CONTINUITY IN THE FACE DEPENDENCIES AND A KEY COMPONENT OF OF CLIMATE-RELATED VALUE TO SOCIETY BUSINESS RESILIENCE PHYSICAL RISKS AND NATURE If a business makes progress in Businesses must assess and The connections, dependencies its mitigation efforts, it becomes evaluate climate-related physical and interrelationships between less vulnerable to disruptive risks, risks throughout operations, climate and society, climate and such as policy and legal measures, supply chains and across the nature and climate and sustainable resource scarcity or market communities in which they operate. development will enhance public developments. pressure on the true purpose of Specific frameworks, such as the business activities and the role COSO and WBCSD framework21 In the long term, climate of business in society. aimed at applying enterprise risk mitigation efforts will enable management to ESG-related Business should encourage policy companies to reduce the cost risks, help companies identify measures which provide political of adaptation to climate-related and manage new risks and and economic priority to activities physical impacts. opportunities, including those with the best outcomes for society Mitigation is a likely driver behind related to the physical impacts and the environment. the surge of climate action of climate change. commitments companies are Assessing a company’s value to making around the world, with Additionally, the World Business society and nature is a challenging many businesses taking concrete Council For Sustainable task. The Natural Capital Protocol,24 action already. Development (WBCSD) developed and the Social Capital and Human in 2014 the Building a Resilient Capital Protocol,25 which WBCSD For example, though the We Mean Power Sector22, a comprehensive helped to develop, provide the Business Coalition, more than report that analyzes climate methodology and approach to 900 companies representing impacts on power systems, assess the materiality and value. over USD $19 trillion in market explores how to better forecast capital have made nearly 1,500 weather and long-term climate A diverse, and powerful group commitments to climate action. risk, and shares companies best of 14 organizations (including As part of this, more than 630 practices from around the world. and hosted by WBCSD) working companies have committed to with business on environmental setting science-based emissions Through the Building Resilience issues have come together

reductions targets through in Global Supply Chains report23 behind Business for Nature26

the we also gave businesses the tools to align business action behind Science Based Targets .19 they need to implement productive impactful commitment platforms initiative adaptation measures throughout and solutions. The coalition aims WBCSD’s Low Carbon their value chain and global to build a business movement Technology Partnerships operations. that gives context and voice to 20 offers proof initiative (LCTPi) the many good, but fragmented, that business is moving beyond Through case studies in commitment and action platforms talk to implement real solutions by contrasting sectors, we highlight that, exist while ensuring effective bringing different sectors together the lessons learned across impact. to sharply reduce emissions. business activities and different kinds of supply chains.

20 Thriving Through the Transformation Business Climate Resilience: CASE STUDY ON INNOVATION TO FOSTER SOCIETY AND BIOSPHERE RESILIENCE WHILE REDUCING GHG EMISSIONS AND INCREASE ADAPTATION TO THE CLIMATE CHANGE IMPACTS ON WATER RESOURCES:

Suez is producing clean energy from wastewater in Chile27

FORM NS AT TRANSFORMATION : RA IO T N The project was launched in 2017 to pioneer innovative INCREASE VALUE TO SOCIETY AND circular wastewater treatment ENVIRONMENT solutions in Santiago and to provide increased value to society and the environment.

Once the water is treated and disinfected, it can serve as a clean source of irrigation for RESILIENCE farmers. The farmers then produce food, which eventually s e a c fe a returns to the city. o sp perating INCREASE DECREASE Life has returned to the

A CONTINUITY N GHG D TO PHYSICAL O Mapocho river, which used to I A EMISSIONS IMPACTS T be a dead zone due to P A T A IG the wastewater. TI IT ON M

GHG MITIGATION:

ADAPTATION TO THE EFFECTS OF CLIMATE CHANGE All three treatment plants will ON THE WATER RESOURCES: be carbon neutral, energy self-sufficient and zero waste The plants secure the provision of water to Santiago by 2022. Biofactories convert despite the climate conditions in the area. sewer sludge into clean energy.

Thriving Through the Transformation 21 Business Climate Resilience: 4 Call to action for businesses

22 22 ThrivingThriving Through Through the the Transformation Transformation BusinessBusiness Climate Climate Resilience: Resilience: to include core business concerns, Businesses will have to prepare PUT RESILIENCE AT THE including finance, strategic for the physical risks associated CORE OF BUSINESS planning, innovation, business with climate change while at the STRATEGY development and more. same time preparing to shift to a net-zero emissions future. Companies that will thrive through the transformation must Setting science-based targets to assess and strengthen resilience Limiting global warming to ensure that their operations, will be crucial. Physical climate 1.5°C will require a deep products, services and solutions impacts can be highly diverse transformation of economic are compatible with a net-zero and are localized. Transition risks systems, eventually leading to emissions world. can be both locally dependent a reprioritization of economic or on a larger scale. Thus, both activities. Only those companies Companies should review their risks need clear strategic planning that are most prepared, creative business models and portfolios for companies to tackle them and skillful will thrive. to embed resilience as part of strategic planning to mitigate risks successfully. Companies that embed resilience and seize new opportunities. will benefit from strong value We list some of the cutting- propositions and strategic Addressing climate-related risks edge solutions available to help differentiators – all of this while and opportunities should therefore companies take practical steps actively leading through the extend far beyond the remit of to start on the road to climate transition. sustainability departments resilience below. Here’s how to start:

UNDERSTAND AND RESOURCES ASSESS BUSINESS RISKS Companies increasingly face a WBCSD (2014) variety of physical and transition Building a Resilient Power Sector climate-related risks, depending on sectoral and regional impact, such WBCSD (2015) Building Resilience in Global Supply Chains as water-related physical risks and likely regulatory instruments that COSO & WBCSD (2018) impact water prices. Enterprise Risk Management: Applying enterprise risk management to environmental, social and governance related risks Frameworks such as the WBCSD and COSO framework for applying WBCSD (2015) Climate Resilience: A Guide for the CEO enterprise risk management to ESG-related risks are supporting WBSCD (2018) companies to better assess and Why carbon pricing matters: A guide for implementation understand their risk exposure. While the TCFD recommendations WBCSD (2018) Low Carbon Technology Partnerships Initiative: Going further, faster help companies communicate these risks and opportunities to the financial markets (see TCFD (2017) Final Report: Recommendations of the Task Force on Climate-relat- “Communicate with stakeholders” ed Financial Disclosures and below). Additionally, data provided by governments or regional WBCSD sector-specific resources on TCFD implementation authorities, as well as innovations in data and smart technologies will CONTINUITY undergoing the physical impacts of climate change support companies and suppliers in taking risk-informed decisions TRANSFORMATION of business models and activities towards a net-zero emissions economy (e.g., climate-smart agriculture).

Thriving Through the Transformation 23 Business Climate Resilience: SCALE UP INVESTMENT WORK WITH OTHERS ADVOCATE FOR CLIMATE IN MITIGATION EFFORTS No single company can address RESILIENCE ALONGSIDE EFFORTS TO the climate challenge alone. To be The private sector can catalyze ADAPT effective, companies should join increased action on resilience Meeting the Paris Agreement forces with others to find effective across entire sectors and climate targets will require solutions that help drive systemic economies. By sending strong a substantial reallocation of change across markets. climate action messages, investments globally. There is companies can help shift the Companies can connect with needle. Whether individually or a clear business call to action other businesses that are leading to scale up investments in through strategic collaboration, the change. Initiatives such as the companies must reinforce the mitigation and adaptation Global Resilience Partnership30 measures. According to the World momentum around the need for and the Global Center on more mitigation and adaptation, Bank, investing in more resilient Adaptation31 provide excellent infrastructure in low - and middle- sending clear signals to opportunities to share experiences policymakers and markets. income countries would return and best practices. USD $4 in benefits for each USD $1 invested.28

COMMUNICATE WITH STAKEHOLDERS To ensure that key stakeholders – including investors and INDIA WATER TOOL: lenders – understand the efforts The 32 is a comprehensive and user-friendly companies are making to India Water Tool address climate-related risks and application that makes water data from the government and other opportunities, follow mainstream organizations available on a publicly accessible platform. The goal recommendations to share is to assist stakeholders in identifying water risks and planning for mitigation and adaptation efforts. better water management in India. The TCFD Recommendations29 Water scarcity is an urgent risk in the country. A 2018 report by are the best place to start. India’s policy think-tank NITI Aayog33 highlights that the country is facing the worst water crisis in history, which could lead to a potential 6% decrease in the country’s GDP by 2030.

Businesses face significant risks from water scarcity and have real opportunities to gain from addressing the challenge. The India Water Tool encourages stakeholders to act, whether at national, watershed or facility level. It includes:

• Over 20 datasets from key Indian government authorities and other organizations

• A dataset on real-time satellite capture of surface water availability from NASA and the US Geological Survey (USGS)

• Water stress models developed by the World Resources Institute (WRI) and Columbia Water Center (CWC).

It provides companies with a data-led approach to working with the other water users for better water management in local geographies.

24 Thriving Through the Transformation Business Climate Resilience:

CASE STUDY ON PARTNERSHIPS:

Veolia and Swiss RE partnering to enable resilient cities34 In 2016, Veolia and Swiss Re, under the auspices of the Rockefeller Foundation, launched a partnership aimed at protecting cities’ vital infrastructure from the impact of natural catastrophes.

Under this partnership, Swiss Re and Veolia have agreed to work with cities to understand the risk exposure of critical assets under current and future climate scenarios. Based on these assessments, cities can develop resilience plans to lessen the risk of climate change affecting these assets and simultaneously reduce their risk exposure over time. By planning for major shocks and stresses, cities not only strengthen the resistance of their vital infrastructure, they also limit economic interruption and begin to quickly repair damage without waiting for insurance assessments, payouts and solicitations for repair proposals.

The result of this partnership will arm cities with new tools to deal with the constantly evolving risks they face and will also ensure the livability and vibrancy of cities by building their economic and physical resilience.

CASE STUDY ON THE CEMENT SECTOR:

Valuing biomass wastes from açaí production in Brazil - Votorantim Cimentos reducing GHG footprint while developing local value chain

Around 40% of CO2 emissions in the cement process come from the use of fossil fuels. Finding alternatives to use different types of waste derived fuels and/or biomass is a key driver to mitigate emissions form the sector. Votorantim Cimentos has been using different sources of wastes and biomass for fuel substitution. An example of a successful case is the Açaí Project in Primavera, in the state of Pará, north Brazil.

The company invested in research and development to find a local raw material waste in its production process. The famous Brazilian superfood called “açaí bowl” coming from the açaí berry, is traditionally consumed for its high-energy value. Under this project, communities, small farmers and suppliers in the region collect the açaí pits that would otherwise be discarded, and after a process, the pits arrive at the cement plant to replace part of the imported petroleum coke, the fuel used in the cement kilns.

This co-processing process, implemented by Votorantim Cimentos results in a series of social,

economic and environmental benefits, such as reduction of CO2 emissions, local job creation, income generation, and inclusion of local communities in the state of Pará.

In 2018, Votorantim Cimentos used 40,000 tons of açaí pits, resulting in 14.3% thermal

substitution and bringing a reduction of 44,000 tons/year of CO2. The company aims to keep increasing usage to achieve 30% of the thermal substitution.

Thriving Through the Transformation 25 Business Climate Resilience: CASE STUDY FROM HEAVY INDUSTRY IN INDIA:

The Aditya Birla Group (ABG) endeavours to become the leading Indian conglomerate for sustainable business practices across its global operations.

K. M. Birla Chairman, Aditya Birla Group

The Group has implemented a three-step approach towards sustainability:

– ABG has created a framework to move towards 1. Responsible Stewardship international standards and mitigate their impact on externalities.

– Gaining knowledge to understand how fast 2. Strategic Stakeholder Engagement “External Factors” will change and when disruptions will occur as we approach a two degree sustainable world.

– ABG is transforming their strategic business plan to include 3. Future Proofing additional mitigation and adaptation to changes in the “External Factors”.

Together with Forum for the Future, Aditya Birla also decided to “look forward to the year 2040 and produced a set of materials to help businesses understand what the journey to climate resilience might look like”. The report, <2°C Futures: 2040 worlds on a trajectory to stay , includes below two degrees centigrade of warming above pre-industrial levels

1. Baseline infographics conveying the physical changes we can expect in 2040 due to climate change, and the ‘transition’ changes that are needed to get on a <2°C trajectory, 2. Four scenarios that represent different pathways, and 3. Implications for business.

External forces (of climate change) will lead poor performers to become unsustainable, i.e. financially, technically or geographically unable to continue and hence eliminated. In some cases, the world will not be able to afford some entire product ranges which will become unsustainable and out of business.

Tony Henshaw CSO, Aditya Birla

26 Thriving Through the Transformation Business Climate Resilience: 5 Call to action for policymakers

Thriving Through the Transformation 27 BusinessBusiness Climate Climate Resilience: resilience: 5 Call to action for policymakers

Sectors don’t self-regulate. Companies’ ethical compasses are not strong enough to compete with business-as-usual short-term comfort and profits. External pressure is key to achieve a desired level of decarbonization and to force companies into having sustainable practices.

Thomas Yapo Programme Coordinator, UNEP FI

Policymakers must proactively and to achieve a net-zero Policy frameworks across market increase regulatory measures economy. It is important to align design, integration, trading, and incentives to de-risk and public and private efforts, for renewable energy and energy decarbonize economies in example by integrating the private efficiency, for example, must alignment with the needs of the sector in the development of support coherent transition Paris Agreement. regional and national adaptation objectives aligned with net-zero plans. Moreover, governments emissions. The urgency of the climate should create integrative challenge requires governments ambition loops to foster business to take the lead in supporting leadership on climate action, business and society in the including resilience.35 Government IMPLEMENTATION transition to a net-zero emissions agencies for environment, finance, world. OF THE TCFD development and health should RECOMMENDATIONS also work together in addressing Business and governments can the inter-connected risks for Financial markets need better, increasingly work together to climate, nature and resilient more comparable and complete develop the right solutions to drive communities. climate change information. ambition and deliver the rapid and The TCFD aims to address this deep decarbonization of the global issue through recommendations economy. designed to help companies disclose climate-related REGULATION financial risks and opportunities. COLLABORATION Governments should develop BETWEEN Through appropriate policy adaptation and resilience plans, measures supporting TCFD GOVERNMENTS AND including regulatory instruments implementation, regulators can BUSINESS TO CREATE that support resilient economies, improve the assessing, pricing and CLIMATE IMPACT AT including in cities and in management of climate-related SCALE agriculture, water and energy risks; investors can make informed Closer collaboration between systems. They should design capital allocation decisions; and governments and the private such plans in a manner that allows lenders, insurers and underwriters sector will enable necessary businesses the flexibility to explore will be better able to evaluate their climate action to mitigate the and scale innovative resilient risks and exposure over the short, physical risks of climate change approaches. medium and long term.

28 Thriving Through the Transformation Business Climate Resilience: CLIMATE FINANCE AND DATA TO SUPPORT CAPACITY BUILDING PRIVATE SECTOR ACTION BUSINESS DECISION- Capacity building strengthens ON RESILIENCE MAKING collaboration, knowledge, expertise Policymakers can support the Data and metrics are crucial to and impact. Data generation, unlocking of private investment the adoption of a science-based analysis and management for climate action by implementing approach to climate action. partnerships are areas with strong policies that provide clarity Despite large data sets and development opportunities. and confidence for businesses – knowledge gathered though to inform strategic planning, drive governments on a global scale, low-carbon innovations and build there is limited availability, business climate resilience. accessibility and quality of CARBON PRICING AS A information and data for long-term KEY ENABLER There is clear demand for climate resilient planning. Impactful market mechanisms will governments to foster innovative be a key climate action enabler. financial mechanisms for climate Public authorities have a key role action that include the private to play in gathering, sharing and Governments should implement sector. Enabling investment flows analyzing data and information robust and Paris Agreement- into natural climate solutions that can lead to meaningful action. aligned carbon pricing policy will help to also accelerate the Additionally, there is an increasing mechanisms (such as carbon needed investments to transform need for national governments taxes, market-based mechanisms, agriculture, land use and forest to support business through standards or a combination of management for halting the loss knowledge sharing and technical these and other appropriate of nature and increasing resilience assistance, for example in digital mechanisms) to redirect of rural communities. This will infrastructure. investments to low-carbon support businesses in creating solutions. innovative approaches that integrate both mitigation We also encourage governments and adaptation efforts, such to set carbon prices consistent as nature-based solutions and with the Carbon Pricing Leadership climate-smart approaches, Coalition’s High-Level Commission and climate action in cities. on Carbon Prices36 and other similar analyses.

Business looks forward to working with governments to develop the solutions that build and enhance climate resilience in the private sector and contribute to the well-being of societies and the environment.

Thriving Through the Transformation 29 Business Climate Resilience: Endnotes

1 IPCC (2018): Global Warming of 1.5°C. 11 Science Based Targets website: https:// 25 WBCSD (2019). The 2019 Social and An IPCC Special Report on the im- sciencebasedtargets.org/. Human Capital Protocol. https://www. pacts of global warming of 1.5°C above wbcsd.org/Programs/Redefining-Value/ pre-industrial levels and related global 12 TFCD website: https://www.fsb-tcfd.org/ Business-Decision-Making/Measure- greenhouse gas emission pathways, in ment-Valuation/Social-Human-Capi- the context of strengthening the global 13 TFCD website: https://www.fsb-tcfd.org/. tal-Protocol/Resources/The-2019-So- response to the threat of climate change, cial-Human-Capital-Protocol sustainable development, and efforts to 14 TFCD website: https://www.fsb-tcfd.org/. eradicate poverty [V. Masson-Delmotte, 26 Business for Nature P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, 15 Stockholm Resilience Centre website: https://businessfornature.org/ P.R. Shukla … & T. Waterfield (eds.)]. Re- https://www.stockholmresilience.org/ trieved from https://www.ipcc.ch/sr15/ 27 UN Climate Change (n.d.). Santiago 16 CocoaCloud website: https://cocoa- Biofactory | Chile. Retrieved from https:// 2 Global Commission on Adaptation cloud.org/. unfccc.int/climate-action/momen- (2019), Adapt Now: A Global Call for tum-for-change/planetary-health/santia- Leadership on Climate Resilience https:// 17 Olam (2018). Press release: Taking go-biofactory-chile. gca.org/global-commission-on-adapta- agricultural sustainability mainstream – tion/report. Olam launches AtSource, 17 April 2018. 28 UN Climate Change (2019). Press Retrieved from https://www.olamgroup. release: $4.2 Trillion Can Be Saved by 3 IPCC (2018): Global Warming of 1.5°C. An com/news/all-news/press-release/ Investing in More Resilient Infrastructure IPCC Special Report on the impacts of taking-agricultural-sustainability-main- - World Bank. Retrieved from https://un- global warming of 1.5°C. Retrieved from stream-olam-launches-atsource.html. fccc.int/news/42-trillion-can-be-saved- https://www.ipcc.ch/sr15/. by-investing-in-more-resilient-infrastruc- 18 Olam (n.d.). AtSource with Olam: ture-world-bank. 4 Tippett, M.K. (2018). Extreme Weather Re-imagine agri supply. Retrieved from and Climate. npj Climate and Atmospher- https://www.atsource.io/index.html. 29 Task Force on Climate-related Finan- ic Science, volume 1, Article number: 45 cial Disclosures (2017). Final Report: (2018) Retrieved from https://www.na- 19 Science Based Targets website: https:// Recommendations of the Task Force on ture.com/articles/s41612-018-0057-1/. sciencebasedtargets.org. Climate-related Financial Disclosures (June 2017). Retrieved from https://www. 5 CDP website: https://www.cdp.net/en/ar- 20 WBCSD (2018). Progress on LCTPi 2018: fsb-tcfd.org/publications/final-recom- ticles/media/worlds-biggest-companies- tangible action for systems transforma- mendations-report/. face-1-trillion-in-climate-change-risks tion. Retrieved from https://www.wbcsd. org/Programs/Climate-and-Energy/Cli- 30 Global Resilience Partnership website: 6 UN Environment (2018). Press Release: mate/Low-Carbon-Technology-Partner- https://www.globalresiliencepartnership. Nations must triple efforts to reach 2°C ships-initiative/Resources/LCTPi-2018. org/. target, concludes annual review of global emissions, climate action. Retrieved 21 COSO & WBCSD (2018). Enterprise 31 Global Center on Adaptation website: from https://www.unenvironment. Risk Management: Applying enterprise https://gca.org/home. org/news-and-stories/press-release/ risk management to environmental, nations-must-triple-efforts-reach-2de- social and governance related risks. 32 India Water Tool website: https://www. gc-target-concludes-annual. Retrieved from https://www.wbcsd. indiawatertool.in/ org/Programs/Redefining-Value/ 7 Task Force on Climate-related Financial Business-Decision-Making/Enter- 33 https://www.niti.gov.in/writereadd- Disclosures (TFCFD) website: https:// prise-Risk-Management/Resources/ ata/files/new_initiatives/presenta- www.fsb-tcfd.org/. Applying-Enterprise-Risk-Manage- tion-on-CWMI.pdf ment-to-Environmental-Social-and-Gov- 8 The New Climate Economy website: ernance-related-Risks. 34 Swiss Re (2016). News release: Swiss Re https://newclimateeconomy.report/2018/ and Veolia to partner on speeding up di- executive-summary/ 23 WBCSD (2014). Building a Resilient saster recovery, 22 Jan. 2016. Retrieved Power Sector. https://www.wbcsd.org/ from https://www.swissre.com/media/ 9 COSO & WBCSD (2018). Enterprise Programs/Climate-and-Energy/Climate/ news-releases/2016/swiss_re_and_ve- Risk Management: Applying enterprise Resources/Building-a-Resilient-Pow- olia_to_partner_on_speeding_up_disas- risk management to environmental, er-Sector ter_recovery.html. social and governance related risks. Retrieved from https://www.wbcsd. 23 WBCSD (2015). Building Resilience in 35 Ambition Loop website: https://ambition- org/Programs/Redefining-Value/ Global Supply Chains. Retrieved from loop.org/. Business-Decision-Making/Enter- https://www.wbcsd.org/Programs/Cli- prise-Risk-Management/Resources/ mate-and-Energy/Climate/Resources/ 36 Carbon Pricing Leadership Coalition Applying-Enterprise-Risk-Manage- Building-Resilience-in-Global-Sup- (2017). Report of the High-Level Com- ment-to-Environmental-Social-and-Gov- ply-Chains. mission on Carbon Prices. Retrieved ernance-related-Risks from https://www.carbonpricingleader- 24 The Natural Capital Protocol https:// ship.org/report-of-the-highlevel-com- 10 TFCD website: https://www.fsb-tcfd.org/. naturalcapitalcoalition.org/natural-capi- mission-on-carbon-prices. tal-protocol/

30 Thriving Through the Transformation Business Climate Resilience: ACKNOWLEDGEMENTS ABOUT WBCSD DISCLAIMER Eric Dugelay, Victor Caritte and WBCSD is a global, CEO-led This report is released in the Eloise Couffon from Deloitte organization of over 200 leading name of WBCSD. Like other supported WBCSD in the businesses working together reports, it is the result of preparation of this report. It to accelerate the transition to collaborative efforts by WBCSD is based on information from a sustainable world. We help staff, experts and executives WBCSD, and its member make our member companies from member companies. Drafts companies, with special thanks more successful and sustainable were reviewed by a wide range to: Luke Blower, Cristiana Ciaraldi, by focusing on the maximum of members, ensuring that the Luca De Giovanetti, Veronika positive impact for shareholders, document broadly represents Neumeier, Tony Siantonas, Juliet the environment and societies. the majority view of WBCSD Taylor, Rasmus Valanko, Karl Vella members. It does not mean, and Tom Williams. Our member companies come however, that every member from all business sectors and all company, Deloitte or WBCSD major economies, representing agrees with every word. a combined revenue of more than USD $8.5 trillion and 19 million employees. Our Global Network of almost 70 national Copyright business councils gives our Copyright © WBCSD, members unparalleled reach September 2019. across the globe. WBCSD is uniquely positioned to work with member companies along and across value chains to deliver impactful business solutions to the most challenging sustainability issues. Together, we are the leading voice of business for sustainability: united by our vision of a world where more than nine billion people are all living well and within the boundaries of our planet, by 2050.

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Thriving Through the Transformation 31 Business Climate Resilience: World Business Council for Sustainable Development Maison de la Paix Chemin Eugène-Rigot 2B CP 2075, 1211 Geneva 1 Switzerland www.wbcsd.org