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The Business Case for Climate Action - Proactive vs. Reactive

The Business Case for Climate Action

Proactive vs. Reactive: Building Climate and Community Resilience

Summary Report #2 on The Intergovernmental Panel on Climate Change 2021 Sixth Assessment Report: Working Group II – Impacts, Adaptation and Vulnerability

Key Takeaways

  • Human-induced climate change has caused widespread adverse impacts to nature and people, affecting the world’s most vulnerable people and systems.
  • Ongoing patterns of socio-economic development, unsustainable ocean and land use, marginalization, and inequity are driving these disproportionate impacts and must be central considerations to future adaptation planning.
  • Although progress has been made, climate adaptation is concentrated in the world’s most privileged regions and sectors and often prioritize immediate risk reduction as opposed to long-term, transformational change.
  • In a scenario where temperatures exceed 1.5 degrees climate risks and vulnerabilities will become increasingly complex and compounded and current adaptation measures will no longer be effective.
  • The businesses community has an opportunity to support climate resilient development that leverages innovation and collaboration for the benefit of the green economy and vulnerable people and communities.

Table of Contents

1. Background on the IPCC Sixth Assessment Report
2. Climate Change and Equity
3. Adaptation and resilience as a privilege
4. Climate resilient development – an opportunity for business leadership
5. The Circular Economy
6. Collaborative cross-sectoral solutions

1. Background on the IPCC Sixth Assessment Report

On February 27th, 2022, the International Panel on Climate Change (IPCC) released the Sixth Assessment Report (AR6), Climate Change 2022: Impacts, Adaptation and Vulnerability (AR6 II). This report is the second in the series of the IPCC AR6, and a follow up to Climate Change 2021: The Physical Science Basis (AR6 I) released August 9, 2021. Please see the PPG Summary Report Why Climate Change is Bad for Business here. The AR6 I addressed the most-up-to-date physical understanding of the climate system and climate change, drawing on the latest advances in climate science, and combining multiple lines of evidence from paleoclimate archives, observations, process understanding, and global and regional climate simulations.  

The AR6 II represents the contributions of Working Group II to the IPCC Sixth Assessment Report. It considers the impacts of post-industrial climate change on ecosystems, biodiversity, and human communities at global and regional levels. The limits and capabilities of the natural world and human societies to adapt to climate change are closely examined. This examination reveals that future risks and vulnerabilities will become increasingly complex and compounded should temperatures exceed 1.5 degrees. It also advocates that social and environmental justice must be integral to future climate adaptation and resilience planning to holistically safeguard biodiversity and human health and wellbeing.

This report summarizes key findings from the AR6 II as they pertain to the North American context, with an emphasis on risks and vulnerabilities facing the business community.

For more information on the AR6 II IPCC Sixth Assessment Report, visit the webpage here.

2. Climate change and equity

The AR6 I highlighted the unequivocally human-induced impacts of climate change on global and natural human systems, some of which are irreversible and no longer adaptable. We are witnessing more frequent and severe weather events, extreme heat, and drought and wildfires across the globe with polar, mountain and coastal ecosystems being the worst impacted. This is resulting in higher human mortality rates, widespread deterioration of ecosystem structure and function, and damage to the built environment. The AR6 II highlights how when combined, these impacts are exacerbating socioeconomic consequences.

In North America, the primary ecosystem impacts include changes in ecosystem structure, and species and seasonal shifts. Human system impacts include water scarcity and food production, poor health and wellbeing, and damages to infrastructure. The AR6 II observes that these impacts are experienced disproportionately by vulnerable and marginalized communities.

For example, extreme heat and heatwaves are causing aggravated air pollution events in highly concentrated urban settings with higher proportions of immigrant and racialized residents. In areas where flooding events are becoming more frequent and severe, we are seeing limited functioning of vital infrastructure like transportation, water, sanitation, and energy systems that underprivileged groups are especially dependent on. Unsustainable land use and resource extraction has caused ecosystem degradation, resulting in long-term adverse effects on people directly dependent on ecosystems and the services they provide, such as Indigenous Peoples and local communities. These communities are described as those least responsible for climate change and those most affected by its impacts. Therefore, it is critical that these groups be central to conversations on future solutions. Indigenous groups were consulted on each chapter of the AR6 II.

Many North American markets are dependent on exports from developing countries that are withstanding the worst of climate impacts where the implementation of adaptive options is especially limited. For example, climate-induced water crises have destabilized food systems in developing countries, which many markets in developed countries are intrinsically dependent on.

3. Adaptation and resilience as a privilege

The AR6 I clearly demonstrates that human-induced climate change, including more frequent and intense extreme weather events, will only continue to worsen if fundamental action to slow global warming is not taken immediately. Extreme shifts in the climatic system disproportionately affect vulnerable human and natural systems alike, illustrating the inherent interdependency of humans and nature.

The AR6 II indicates with very high confidence that although progress has been made in climate adaptation planning and implementation across the globe, it has not occurred in an equitable way and many natural and human systems remain vulnerable to climate risks. The AR6 II critiques climate adaptation initiatives as being short-sighted and reactive as opposed to proactive and transformational. A one-size-fits-all approach to building climate resilience across differentiated sectors is neither feasible nor effective. These “maladaptive” responses to climate change serve to entrench vulnerability, exposure and risks and are difficult and expensive to reverse. Instead, we must work toward collaborative solutions that address social inequities and their unique climate risks. Furthermore, some existing adaptation measures will no longer be effective should temperatures exceed 1.5 degrees. For example, planting trees in urban areas that cannot survive hotter temperatures.

The AR6 II advocates for a number of enabling conditions to accelerate and sustain collaborative climate adaptation. Specifically, “political buy-in and follow-through, institutional frameworks, policies and instruments with clear goals and priorities, enhanced knowledge on impacts and solutions, mobilization of and access to adequate financial resources, monitoring and evaluation, and inclusive governance processes”. The growing prevalence of vulnerabilities facing natural and human systems to climate impacts is evidence that climate resilience is a privilege and requires the action of privileged players.

With high confidence, the AR6 II indicates that nearly half of the world’s population live in areas that are highly vulnerable to climate change.  The business community is urged to consider how the way they do business may not only be contributing to climate change but also perpetuating socio-economic inequalities and ecosystem stress across the supply chain. Some critical areas to explore include how business models contribute to unsustainable land use patterns and ecosystem deprivation that pose increased risk to vulnerable human and natural systems.

4. Climate resilient development – an opportunity for business leadership

In reference to “climate resilient development” the AR6 II states: “integrated, inclusive planning and investment in everyday decision-making about urban infrastructure, including social, ecological and grey/physical infrastructures, can significantly increase the adaptive capacity of urban and rural settlements”. Climate resilient development is an approach to climate action that combines mitigation with adaptation. Businesses have a unique opportunity to be leaders in climate resilient development.

To support businesses, PPG’s water stewardship, energy performance and circular economy (waste management) programs can help.

Water Stewardship

PPG’s water stewardship programs span education on water conservation, pollution prevention, and the benefits of managing flood risk and extreme heat through Low Impact Development (LID)/green infrastructure solutions.

LID/green infrastructure solutions are an excellent opportunity for business to tangibly support ecosystem and biodiversity regeneration that has been lost because of unsustainable land development. By reclaiming hardscaped and underutilized space, businesses are reducing exposure of ecosystems to climate hazards, mitigating future risks to their properties, and slowing global warming. These planning decisions represent an investment in smarter urban infrastructure that protects local waterways by reducing stormwater pollution and minimizes urban heat island effect. LID /green infrastructure projects can create opportunities for inclusive collaboration among multiple stakeholders, support the green economy, and create welcoming and health-promoting spaces for employees and the wider community. The benefits of LID/green infrastructure are reinforced by the AR6 II notion that climate resilient development generates equitable outcomes for underprivileged groups.

Currently, PPG is exploring partnerships with Credit Valley Conservation, the City of Mississauga and the Sustainable Technologies Evaluation Program to bring programs to PPG Members that will support them in implementing LID/green infrastructure projects and adapt to flood risk. In addition, PPG continues to develop their Water and Climate Resilience Consortium that will be launched later in 2022.

We are all connected by the watershed and our actions have the power to degrade or regenerate the ecosystems that we depend on and that depend on us. LID/green infrastructure solutions are a way we can look differently at stormwater – instead of viewing it as a nuisance and something to be managed, we embrace stormwater as a resource and messenger of climate change. PPG acknowledges that this thinking is central to Indigenous worldview and that Indigenous people have been the primary stewards of our watersheds since millennia.

If your business wants to be part of the climate solution through innovative solutions in stormwater management and green infrastructure, contact: Chaya.chengappa@trca.ca.

Energy Performance

Divesting from fossil fuels and investing in localized, renewable energy solutions combines mitigation with adaptation. Stopping the burning of fossil fuels minimizes carbon emissions and slows down global warming (mitigation). Smaller scale/localized energy systems minimize vulnerability to power outages from severe weather events instead of relying on one centralized system to meet widespread demand (adaptation).

On a business-specific scale, reducing energy use and improving efficiencies in operations is a critical mitigation strategy that helps build energy independence. While the COVID-19 pandemic has resulted in lower emissions across most sectors, it is important for business to be mindful of rebounding emissions as the economy reopens.

Business can explore how they can play a part in accelerating the transition to cleaner and more resilient energy systems through PPG’s energy performance programming, including the Energy Leaders Consortium. For more information, contact: Matt.brunette@trca.ca.

5. The Circular Economy

PPG‘s Circular Economy Leaders Consortium, in partnership with TELUS, is focused on facility waste management. The CEC has 7 Founding Members representing a range of sectors and business sizes and an Advisory group of experts in the circular economy space. Unlike the linear economy that goes from natural resource extraction to waste disposal, the circular economy is a new way of doing business in which nothing is wasted. Reusing, repairing, remanufacturing and other circular economy principles help to avoid emissions associated with the production of new goods and the emissions involved in their disposal and avoid the depletion of natural resources involved in making goods. These principles align with AR6 II claim that safeguarding biodiversity and ecosystems is fundamental to climate resilient development and preserving the role they play in climate adaptation and mitigation.

In addition to the CEC, PPG offers the Material Exchange program (MEX) that facilitates the exchange of material within our stakeholder network. The aim of MEX is to divert material from landfill, strengthen community capacity, and advance a circular economy. At PPG, we believe in equitable access to quality materials and supplies for life, work, and play and at the same time, reducing the environmental impact of wasted resources. PPG encourages organizations supporting underserved communities and groups identifying as Black, Indigenous, and People of Colour to register as receivers by using this form.

To learn more about how your business can support the circular economy contact: Anna.currier@trca.ca.

 

6. Collaborative, cross-sectoral solutions

Feasible and effective adaptation relies on cross-sectoral solutions that address climate risks and vulnerabilities in holistic ways. Holistic business models examine how both suppliers of materials and services as well as stakeholders in the supply chain are affected by climate change. The AR6 II states that “weather and climate extremes are causing economic and societal impacts across national boundaries through supply-chains, markets, and natural resource flows, with increasing transboundary risks projected across the water, energy and food sectors”. It is a key priority for PPG to create a safe and constructive space for member business to consider how they benefit from systems of power and oppression that manifest in climate-related risks and vulnerabilities facing human and natural systems. And, to not lose sight of the reality that these risks are hitting close to home in sectors vital to the North American economy. How can we build resilience across the entire supply chain and not just in the local context?

PPG wants to hear from the business community about how it can best support its membership base in adapting and building resilience to climate impacts and applying these efforts across the entire supply chain where inequities exist. Please share your feedback by emailing: admin@partnersinprojectgreen.com.

PPG Members can expect summaries on each of the IPCC’s upcoming reports shortly after their release for the PPG community.  Reports include: