Firms urged to face up to the new demands of a low carbon economy

Companies are beginning to recognise the threat posed by climate change to all aspects of their business – beyond the obvious damage caused to the planet.

This is according to a report published by Clyde & Co on the rapidly evolving risk and regulation environment and subsequent implications for businesses and industry.

Nigel Brook, partner at Clyde & Co said: “As climate-related risks become more prevalent, we are seeing an increase in high-profile litigation resulting in significant losses for businesses.

“At Clyde & Co, we believe a proactive, rather than reactive, approach to the new risk environment is sensible, drawing on good governance and turning it into action. It represents an opportunity for businesses to build resilience against climate risk and transition to a new, and better, way of operating."

Launching its 2021 climate change risk and liability report, Stepping up Good Governance to Seize Opportunities and Reduce Exposure, the law firm says the conversation around climate change at an organisational level has changed in the two years since it published its first climate risk report.

Global emissions must halve by 2030 to keep global warming below 1.5 degrees, and with over 110 countries committed to becoming carbon neutral by 2025, this year’s United Nations COP26 climate change summit will set the pace for defining and strengthening policy response.

See the next issue of CIR for more on this report.

Image courtesy Terrafirma

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