![]() | This article includes a list of general
references, but it lacks sufficient corresponding
inline citations. (July 2010) |
The Investor Network on Climate Risk (INCR) is a nonprofit organization of investors and financial institutions that promotes better understanding of the financial risks and investment opportunities posed by climate change. INCR is coordinated by Ceres, a coalition of investors and environmental groups working to advance sustainable prosperity.
The Investor Network on Climate Risk (INCR) was launched at the first Institutional Investor Summit on Climate Risk at the United Nations in November 2003. INCR's membership consists of more than 200 investors managing nearly $38 trillion in assets. Members include asset managers, state and city treasurers and comptrollers, public and labor pension funds, foundations, and other institutional investors. INCR leverages the collective power of these investors to promote improved investment practices, policies, disclosure and corporate governance practices on the business risks and opportunities posed by climate change.
Given the global nature of climate change, climate risk has become embedded, to a greater or lesser extent, in every business and investment portfolio. Severe weather events and changing weather patterns, current or impending regulations imposing a cost on carbon, and an altered competitive environment will have an inescapable impact on businesses. Climate change is increasingly being seen as a strategic issue, and leading companies are taking action now to mitigate the risks and take advantage of the opportunities arising from climate change as a way to prepare for the emerging low-carbon global economy.
The risk that climate poses to any individual business varies, but nearly every company will face some type of pressure from the changing climate including:
Companies at the vanguard are increasingly finding that indeed, addressing global warming is good for the bottom line. The costs to reduce greenhouse gas emissions can be counterweighed by the potential profits. Climate change poses risks to industry, but it also presents opportunities: Some companies are already taking advantage of new products, markets, and competitive advantages inherent in the low-carbon economy.
Where there is challenge, there is the potential for growth. Companies are already finding space for new products and services for a "green" economy. With the financial and competitive risks that climate change brings, forward-looking companies are finding the potential for enormous business opportunities as well.
Clean technology, renewable energy sources, carbon emissions trading markets and energy efficiency efforts are the most vivid examples of these opportunities: the growth of global markets for renewable energy, for example, hit $50 billion in 2005, and the market is projected to eclipse $150 billion by 2015. Companies are seizing on opportunities for creating new low-carbon energy-efficient products — GE's "ecomagination" program, for example, is expected to have sales of $20 billion by 2010. But companies in other sectors are reaping the benefits, too—banks, insurers, and others in the financial industry are also finding innovative ways of proving that for business, "green is green." Climate change, like any momentous challenge, provides opportunities for growth for companies willing to be leaders. Hand in hand with the financial and competitive risks of climate change come opportunities to increase shareholder value, increase brand value and enhance competitiveness and profitability.
Since 2004, corporate leaders in many US industries and leading investors have begun to meet the climate challenge.
And companies have begun to reap the benefits:
![]() | This article includes a list of general
references, but it lacks sufficient corresponding
inline citations. (July 2010) |
The Investor Network on Climate Risk (INCR) is a nonprofit organization of investors and financial institutions that promotes better understanding of the financial risks and investment opportunities posed by climate change. INCR is coordinated by Ceres, a coalition of investors and environmental groups working to advance sustainable prosperity.
The Investor Network on Climate Risk (INCR) was launched at the first Institutional Investor Summit on Climate Risk at the United Nations in November 2003. INCR's membership consists of more than 200 investors managing nearly $38 trillion in assets. Members include asset managers, state and city treasurers and comptrollers, public and labor pension funds, foundations, and other institutional investors. INCR leverages the collective power of these investors to promote improved investment practices, policies, disclosure and corporate governance practices on the business risks and opportunities posed by climate change.
Given the global nature of climate change, climate risk has become embedded, to a greater or lesser extent, in every business and investment portfolio. Severe weather events and changing weather patterns, current or impending regulations imposing a cost on carbon, and an altered competitive environment will have an inescapable impact on businesses. Climate change is increasingly being seen as a strategic issue, and leading companies are taking action now to mitigate the risks and take advantage of the opportunities arising from climate change as a way to prepare for the emerging low-carbon global economy.
The risk that climate poses to any individual business varies, but nearly every company will face some type of pressure from the changing climate including:
Companies at the vanguard are increasingly finding that indeed, addressing global warming is good for the bottom line. The costs to reduce greenhouse gas emissions can be counterweighed by the potential profits. Climate change poses risks to industry, but it also presents opportunities: Some companies are already taking advantage of new products, markets, and competitive advantages inherent in the low-carbon economy.
Where there is challenge, there is the potential for growth. Companies are already finding space for new products and services for a "green" economy. With the financial and competitive risks that climate change brings, forward-looking companies are finding the potential for enormous business opportunities as well.
Clean technology, renewable energy sources, carbon emissions trading markets and energy efficiency efforts are the most vivid examples of these opportunities: the growth of global markets for renewable energy, for example, hit $50 billion in 2005, and the market is projected to eclipse $150 billion by 2015. Companies are seizing on opportunities for creating new low-carbon energy-efficient products — GE's "ecomagination" program, for example, is expected to have sales of $20 billion by 2010. But companies in other sectors are reaping the benefits, too—banks, insurers, and others in the financial industry are also finding innovative ways of proving that for business, "green is green." Climate change, like any momentous challenge, provides opportunities for growth for companies willing to be leaders. Hand in hand with the financial and competitive risks of climate change come opportunities to increase shareholder value, increase brand value and enhance competitiveness and profitability.
Since 2004, corporate leaders in many US industries and leading investors have begun to meet the climate challenge.
And companies have begun to reap the benefits: