by Hank Boerner – Chair & Chief Strategist – G&A Institute
Whether you are an investor, company executive or board member, or an issue advocate, or civic leader, these “high probability” outcomes should keep you up at night: more superstorms; more drought; increased risk of forest fires; more floods; rising sea levels; melting glaciers; ocean acidification; increasing atmospheric water vapor (thus, more powerful rainstorms)…and more.
How about a potential drop of 10% in the U.S.A. Gross Domestic Product by end of this century?
These are some of the subjects explored in depth in the fourth “Climate Science Special Report” of the U.S. Global Change Research Program. That is a collaborative effort of more than a dozen Federal departments, such as NOAA, NASA, US EPA, and executive branch cabinet offices of Commerce, Agriculture, Energy, State, Transportation, and Defense; plus the OMB (Office of the President).
The experts gathered from these departments of the U.S. government plus a passel of university-based experts, reported last week (in over 1600 pages of related content) on the “state of science relating to climate change and its physical impacts.”
The CSSR (the Climate Science Special Report) serves as a foundation for efforts to assess climate-related risks and inform decision-makers…it does not include policy recommendations. The results are not encouraging – at least not in November 2018.
The National Oceanic and Atmospheric Administration (NOAA) is the lead agency working with NASA and other governmental bodies to develop the report – which analyzes current trends in climate change and project major trends out to the end of this 21st Century. The focus of the work is on human welfare, societal, economic, and environmental elements of climate change.
Each chapter of the report focuses on key findings and assigns a “confidence statement” for scientific uncertainties. There are 10 regional analyses of recent climate change (such as the Northeast, and Southern Great Plains).
(1) This period is now the warmest in the history of modern civilization.
2) Thousands of studies have documented changes in surface, atmospheric and oceanic temps;
(3) glaciers are rapidly melting;
4) we have rising sea levels;
5) the incidence of daily tidal flooding is accelerating in more than 25 Atlantic and Gulf coast cities.
The various findings, the authors point out, are based on a large body of scientific, peer-reviewed research, evaluated observations and modeling data sets. In this report, we should note, experts and not politicians speak to us in clear terms.
Global climate is projected to change over this century (and beyond) – the report is replete with “likelihoods” of events) and the experts state that with major effort, temps could be limited to 3.6°F / 2°C or less – or else. Without action, average global temperatures could increase 9°F / 5°C relative to pre-industrial times – spelling disaster at the end of the 2100s.
The Financial Stability Board’s (FSB) Task Force on Climate-Related Financial Disclosures (the “TCFD”) strongly recommendations that the financial sector companies and (initial) four business sectors begin to test scenarios against (to begin with) 2-degrees Centigrade (3.5°F) temp rise and increase from there.
The four industry groups in the Financial Sector are: Banks, Insurance Companies, Asset Owners, Asset Managers.
The four non-financial business sectors are: Agriculture. Food & Forest Products; Buildings & Materials; Transportation; Energy (Oil & Gas).
This new national assessment from the Federal government should be a valuable resource for investors, bankers, insurance carriers and a wide range of companies in their scenario planning (content related to alternative scenarios is in the report).
Click the links below for:
TCFD information is here: https://www.fsb-tcfd.org/
Our Top Story in Sustainability Highlights this week is The Washington Post’s take on the report and its issuance by the Federal government on what some officials considered to be a slow Thanksgiving Friday news period. The news coverage that followed was anything but “slow”!
Washington Post – Climate story by Brady Dennis and Christ Mooney
Major Trump administration climate report says damage is ‘intensifying across the country’
(Friday November 23, 2018) Source: The Washington Post – Scientists are more certain than ever that climate change is already affecting the United States — and that it is going to be very expensive. The federal government on Friday released a long-awaited report with an unmistakable message: The effects of climate change, including deadly wildfires, increasingly debilitating hurricanes and heat waves, are already battering the United States, and the danger of more such catastrophes is worsening.