Climate change adaptation in industry and business: A framework for best practice in financial risk assessment, governance and disclosure
Authors: Jason West and David Brereton
This report delivers a best practice framework to integrate financial risk assessment, governanace and disclosure with existing governance principles around climate change adaptation. The framework avoids prescription for adaptation strategies, but rather, advocates an approach to adaptation planning and cost estimation based on fundamental risk-management principles, and a comparision of the costs, efforts and benefits involved in adopting different adaptation strategies. A matrix of disclosures required for investors to enable them to evaluate corporate exposure to climate change risk is outlined within. This study focuses specifically on climate change adaptation mechanisms for companies whose focus on adaptation has increased with the aim of protecting their business operations from climate change risk.