August 12, 2021
IPCC report strengthens attribution of fires, extreme weather & climate change to GHG emissions & urges immediate reductions
On Monday, the released its on climate change and human-induced greenhouse gas emissions (GHG). The findings of the IPCC AR6 are substantial and could drive regulation, additional pressure from stakeholders, and certain litigation.
Takeaway 1: Significant cuts to GHG emissions are needed sooner than expected
The report concluded that severe climate impacts may occur sooner than previously anticipated unless dramatic GHG reductions are implemented. This finding may drive increased government regulation of GHG emissions and stakeholder demands for GHG reductions from companies. Companies will want to anticipate and leverage changes to regulation, consumer sentiment, and investor expectations by preemptively adopting sustainable practices to stay ahead of the curve.
Takeaway 2: Extreme weather will increase in intensity and frequency
The report projects increasing intensity and frequency of future extreme weather events. These projections provide additional information for companies, municipalities, investors, and insurers regarding the need for additional mitigation and resilience. Companies should evaluate their infrastructure to identify and mitigate climate risks by improving resiliency. For example, use of nature-based engineering projects, such as wetlands, can improve resilience while absorbing carbon and providing a local environmental benefit.
Takeaway 3: GHG emissions are affecting the global water cycle
The report indicates that human activities are increasing the variability of the global water cycle, which will increase focus on water management and is likely to drive additional regulatory and stakeholder demands to reduce water consumption. Companies should assess their current water usage and the risks associated with future water restrictions. Strategies to mitigate these risks include water treatment, recycling, and improved process efficiency.
Takeaway 4: Certain extreme weather events are being attributed to human activities
The report attributes certain extreme climate events to human-induced GHG emissions. The attributions included in AR6 could be cited in civil litigation where municipalities or organizations harmed by extreme weather seek compensation from companies with historical GHG emissions. Companies and their counsel should understand the basis and limitations of these attributions in the event they are used in a legal proceeding.
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