Business and Climate Change adaptation

1 Business and Climate Change adaptation : Toward Resilient Companies and Communities 2. A Caring for Climate Report by the United Nations Global Compact and United Nations Environment Programme in cooperation with the CEO Water Mandate Caring for Climate Email: Project Manager: Jayoung Park Lead Consultant: Nancy Hopkins Designer: Nilou Safavieh Copyright 2012. UN Global Compact and UN Environment Programme Disclaimer This publication is intended strictly for learning purposes. The inclusion of company names and/or examples does not constitute an endorsement of the individual companies by the United Nations Global Compact Office. The material in this publication may be quoted and used provided there is proper attribution. without prior permission, provided that clear attribution is given to UN Global Compact and UN Environment Programme and that content is not used for commercial purposes.

2 3. Table of Contents Summary 4. Introduction 6. Recognizing the Role Businesses Play in adaptation 6. Key Insights on Business Engagement in adaptation 8. Ten Case Studies: Business Contributions to adaptation 15. Agbar Cetaqua: Building the adaptation Knowledge Base for Water Resource Management 16. Banco do Brasil Agua Brasil: Promoting Adaptive Practices in Agriculture and Water Resource Management 19. China Minmetals Corporation Innovation For Industrial Water Conservation 22. The Coca-Cola Company Supporting Joint Stewardship of Water Resources 25. Eskom Engaging in Internal and External Policymaking for adaptation and Resilience 28. Hindustan Construction Company Sustainable Infrastructure: A Focus on Water 31. Nokia Harnessing the Power of Mobile Technology to Build Climate Resilience for the Rural Poor 34. Telvent Helping Governments Prepare for Severe Weather Events 37.

3 Sector Approaches: The Insurance Industry Helping Climate -Vulnerable Communities Manage Risk 40. Sector Approaches: The Pharmaceutical Industry Preparing for the Health Impacts of Climate Change : A New Frontier 43. Looking Ahead 47. Annex a: Summary Of Company Case Studies 48. Annex b: Additional Examples of Business Engagement in adaptation 50. 4. Summary Business and Climate Change adaptation : Toward to the development and implementation of Resilient Companies and Communities presents effective solutions, including sector-specific ten case studies from a broad range of Caring expertise, new technology, significant levels for Climate and CEO Water Mandate compa- of financing, the need to be efficient and nies. These cases illustrate how businesses are make cost-effective choices, and an entrepre- responding creatively and effectively to ad- neurial perspective.

4 These case studies show dress Climate Change opportunities , risks, and how this potential can be harnessed to help impacts in developing countries and emerg- address adaptation challenges and promote ing economies. It is designed as a companion the public good. piece to Adapting for a Green Economy: Compa- Below are key insights emerging from the nies, Communities, and Climate Change , a report case studies and through conversations with issued in June 2011 by the United Nations Caring for Climate and CEO Water Mandate Global Compact, the United Nations Environ- companies about their adaptation efforts: ment Programme (UNEP), the World Resourc- es Institute (WRI), and Oxfam. While Adapting Overall, Business engagement in adaptation is still for a Green Economy makes the Business case at an early stage, particularly relative to mitiga- for adaptation at the nexus of company needs tion.

5 The companies profiled in this report and community needs, this supplementary are early-movers in terms of their contribu- report shows how companies are addressing tions to adaptation . Many companies are real-world adaptation challenges in ways that largely aware of Climate Change risks and support sustainable development. The case opportunities , but do not yet have adap- studies presented here underscore private tation strategies, plans, and activities in sector strengths in identifying new Business place. There is a need for continuing educa- opportunities , creating new markets, and rec- tion and information dissemination about ognizing and managing risk, all of which are Climate Change adaptation from outside the critical to ensuring resilient businesses and private sector, among sectoral and multi- communities in the face of Climate Change . sectoral Business associations and within companies themselves.

6 The report's purpose is threefold: When it comes to Climate Change , the idea that To inform and inspire companies to antici- community risks are Business risks is salient pate and adapt to Climate Change , while and persuasive. Companies recognize that factoring community vulnerabilities into their ability to grow and prosper cannot be their analysis and decision-making pro- disconnected from community well being, cesses; and they do not view the community . To engage policymakers to catalyze and as an abstract concept. Companies view support Business contributions to Climate building community Climate resilience as Change adaptation for more resilient an imperative for strategic Business action communities and societies; and that must go beyond the realm of corporate To encourage civil society organizations, philanthropy. universities and research institutes, and Companies are experiencing a diverse range of other non-governmental actors to see com- benefits from engaging in actions that increase panies as key partners and allies in helping Climate resilience.

7 These benefits include the vulnerable communities cope with Climate ability to better manage and mitigate risk, Change risks and impacts. decreased costs, increased profits, new mar- kets, and a reputation as a good corporate These case studies highlight the private sec- citizen. tor's important role in advancing the global Companies point to a wide range of success Climate Change adaptation and sustainable factors in designing and implementing Climate development agendas. While it is ultimately Change adaptation measures. These insights, governments' responsibility to meet the such as the value of considering long-term needs of poor and vulnerable populations, projections on returns from today's adapta- the private sector has much to contribute tion investments, can be useful in pointing 5. the way forward for other companies that facilitate scale-up and replication of effec- are ready to take action on adaptation .

8 Tive approaches already underway. Climate Change adaptation and resilience- building challenges present new opportunities for There is tremendous scope for building partnerships and engagement with stakeholders. Climate -resilient companies while building Building effective adaptation solutions Climate -resilient communities. Companies will require marshalling the full range that rigorously assess Climate Change risks of complementary assets that the private and opportunities and implement creative sector, civil society, university and research solutions for long-term resilience will cre- community, public sector, and vulnerable ate Business value while making important communities have to offer. contributions to sustainable development and National-level government leadership on adapta- equitable green growth. tion is of critical importance. A supportive policy environment is essential to catalyze broader private sector engagement and 6.

9 Introduction Even with concerted efforts to curb global practices, such as drought and saline tolerant greenhouse gas emissions to slow the rate of crop varieties, need to be widely accessible Climate Change , it is still necessary to prepare and utilized; water and energy must be man- for and respond to the adverse impacts that aged more efficiently; health systems must be Climate Change will have on societies and fortified to respond to emerging threats, and economies across the globe. While some new medicines are needed; biodiversity and uncertainty exists about the exact nature, ecosystem services must be preserved; and timing, location, and magnitude of these the livelihoods of poor people strengthened. impacts, empirical scientific evidence clearly indicates the increasing likelihood and sever- Recognizing the Role Businesses ity of Climate -related threats, including: water Play in adaptation shortages and droughts; flooding; extreme, Businesses have become increasingly aware unpredictable weather patterns and events; of the critical role they play in enabling ef- declining agricultural yields; spread of disease fective, timely, and appropriate adaptation .

10 And decline in human health; and loss of They recognize the risks that Climate Change biodiversity. Anticipated Climate Change risks poses, not only for their operations, but also and impacts are explored in detail in Adapting to their suppliers, employees, customers, and for a Green Economy: Companies, Communities, and people living in the areas in which they oper- Climate Change . ate. Businesses have also begun to recognize adaptation measures are needed to reduce opportunities to expand operations and in- vulnerability and increase human and envi- crease their market share through developing ronmental resilience against the impact of Climate -resilient products and services to help current and future Climate Change . Govern- people, other businesses, and governments ments in both developed and developing adapt. A 2010 survey conducted by Caring for countries have initiated comprehensive strat- Climate revealed some important perspectives egies to ensure that citizens have the capacity on Business engagement in Climate Change to cope with changing climatic conditions at adaptation (see text box below).