From agricultural production to changes in the weather, most businesses will be exposed to climate change. But with its risks clouded by uncertainty, how do they reduce that exposure?
Climate change is one of the greatest threats facing humankind. But it also represents one of the most uncertain, unpredictable risks, and while there is a broad consensus that we face enormous challenges, quite what those will be remains a matter of debate.
“It’s very hard to establish the risk,” says Dr. Daniel Bebber, head of climate research of the environmental NGO Earthwatch, who works with HSBC on climate issues. “The central issue is uncertainty.” But the limits of scientific knowledge are only the beginning of the problem, and our understanding of the risk is further complicated by the difficulties in mapping human response to change. Whatever the outcome, there will undoubtedly be opportunities for adaptation. “For example, in developing new crop varieties better able to cope with drought and temperature extremes,” says Dr. Bebber. “Or providing governments and the international community agree on the right legislation-carbon markets, as well as sequestration and alternative technologies.”
CLIMATE CHANGE BRINGS WINEMAKING WOES
Wine is one of the most iconic European products - not only an exportable and profitable industry but, for many, a foundation of the civilization that has shaped life on the continent with pronounced regional trends.
Over the centuries, grape varieties have acquired strong associations with particular areas; in French the word terroir is used to denote the special characteristics a bottle acquires from local geography, climate, and geology. But all that could be about to change as climate change bites.
View the full article, Rising Temperature, from StrategicRISK magazine.