Economic Ramifications of Climate Change Move Cities to Protect Businesses, Finds CDP Report

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Economic Ramifications of Climate Change Move Cities to Protect Businesses, Finds CDP Report

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"Protecting our Capital," a new @AECOM, @CDP & @c40cities report on #climatechange risk for businesses in #cities. http://3bl.me/5d624k

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Climate change strategies and actions from 207 cities, including São Paulo in Brazil (pictured), are reflected in the CDP Global Cities Report 2014.

Thursday, July 10, 2014 - 9:00am

CAMPAIGN: Cities for People

CONTENT: Press Release

July 10, 2014 /3BL Media/ - The majority of the world’s major cities have disclosed that climate change presents a physical risk to the businesses operating in their cities. This real and current threat is driving local governments to take concrete action in response, so finds Protecting our Capital, a new report from CDP, formerly Carbon Disclosure Project, AECOM and C40 Cities Climate Leadership Group (C40).   

Cities generate more than 80% of global GDP, are home to more than half the global population and consume two thirds of the world’s energy[1].  They are also on the frontline of climate change[2]. Accordingly, 207 cities including Johannesburg, London, New York, São Paulo, Sydney and Tokyo, have disclosed their climate change strategies and actions through CDP. This is nearly double the 110 cities that disclosed last year, demonstrating the increasing importance that city administrations place on their environmental accountability and performance monitoring. 

Three quarters of these cities disclose that extreme weather and other effects of climate change threaten the stability of their local economies, with damage to property and capital assets, transport and infrastructure destruction, and citizen wellbeing among the most commonly reported risks. However, more than three quarters of cities see financial benefits from taking action on climate change. Portland, for example, reports that its City Energy Challenge program achieves annual savings of US$5.5 million, resulting in cumulative savings of US$42 million since the program’s inception in 1991.

The report includes analysis by AECOM and is presented together with CDP’s long-standing strategic partner C40. It examines the data from 50 cities where 78 companies have reported that they expect climate change to have a physical effect. Cited impacts include drought, intense rainfall, storms, floods, heat waves and sea level rise. It establishes that both cities and companies are aware of the substantial financial values associated with climate change impacts and that city action on climate change helps reduce those risks for businesses.

The City of Cleveland reveals that increasing cases of severe weather and diminishing water at Lake Erie put its US$6.5 billion shipping industry at risk.  Pittsburgh reports that some business owners are abandoning their investments because they are unable to seek compensation for losses incurred as a result of climate change. Indeed, the insurance industry recently filed lawsuits against city municipalities for failing to adapt to the consequences of climate change[3]

As Caracas, Venezuela, reports: “Drinking water and electricity generation could be interrupted because of climate change. These factors could affect the private sector. Floods can interrupt operations and insurance companies may face higher claims.”

Cities are largely aligned with companies on risk identification. They recognize 69% of the physical climate change risks that businesses identify in those cities and are moving to address 66% of the company-identified risks. 

In Hong Kong, energy provider CLP Holdings has suffered site damage and business interruption as a result of rising sea level. It has spent US$193,000 raising building floor levels and has invested a further US$516,000 to increase drainage capacity. The Hong Kong Drainage Services Department, meanwhile, has put US$2.7 billion toward flood defence infrastructure, including river widening and underground water storage. To combat rising temperatures in London, financial advisor Morgan Stanley has spent US$4.4 million upgrading air-conditioning at its data center.  London is using its planning system to drive greater energy and cooling efficiency – ensuring property managers and developers contribute to a more climate resilient city.

This alignment on risk identification is leading cities not only to invest in climate resilience but also to introduce policy designed to guide and enable the businesses to adapt. 

Larissa Bulla, head of CDP’s cities program says: “Local governments are storming ahead to protect their citizens and businesses from the impacts of climate change, but further collaboration with business is needed to increase city resilience. Through the provision of information, policies and incentives, cities can help equip businesses to manage these risks and embrace the opportunities.”

Gary Lawrence, chief sustainability officer for AECOM, a premier, fully integrated infrastructure and support services firm, says: “Three quarters of the cities that have taken part in CDP’s cities program this year identified substantial benefits that flow to both public and private economies from climate adaptation initiatives. These benefits can be amplified through closer collaborations and sharing of knowledge and technical resources.”

Nearly every city in the C40 network of global cities taking action on climate change has this year disclosed to CDP, the official exclusive reporting partner of the C40. Kerem Yilmaz, C40 head of research says: “The need to understand and act upon climate risk is a growing priority. That’s why these cities are taking steps right now to help create more climate-resilient communities, economies and infrastructure.  Their commitment to measuring and reporting on this critical issue is accelerating action by enabling cities to identify common challenges and work together to spur and implement solutions.”

Individual responses from the cities are now available on the CDP website, where the report can be freely downloaded. Released alongside the new report today is an infographic which displays data from all 207 reporting cities, including their greenhouse gas emissions, risks, adaptation actions, and emissions reduction activities. See the full infographic on the cities pages of CDP’s website.

 

Ends

                                                                                    

Editor’s notes

Disclosing cities
Most cities have made their completed climate change questionnaires available to the public.  The responses from those cities are now available on the CDP website.  207 cities took part in CDP’s cities program this year, representing a near 100% increase on the 110 cities in 2013.  Participating cities are listed below.

AFRICA

Addis Ababa City Administration

Ethiopia

City of Abidjan

Cote d’Ivoire

City of Cape Town

South Africa

City of Dar es Salaam

United Republic of Tanzania

City of Durban

South Africa

City of Johannesburg

South Africa

City of Lagos

Nigeria

City of Nairobi

Kenya

City of Pietermaritzburg

South Africa

Pretoria - Tshwane

South Africa

 

EUROPE

Ajuntament de Barcelona

Spain

Ayuntamiento de Madrid

Spain

Barreiro

Portugal

Basel-Stadt

Switzerland

Bornova Municipality

Turkey

Cascais

Portugal

City of Amsterdam

Netherlands

City of Athens

Greece

City of Berlin

Germany

City of Copenhagen

Denmark

City of Lisbon

Portugal

City of Oslo

Norway

City of Paris

France

City of Porto

Portugal

City of Stockholm

Sweden

City of Turku

Finland

City of Warsaw

Poland

City of Zaragoza

Spain

Ciy of Gibraltar

Gibraltar

Comune di Bologna

Italy

Comune di Bolzano

Italy

Comune di Ferrara

Italy

Comune di Genova

Italy

Comune di Milano

Italy

Comune di Napoli

Italy

Comune di Oristano

Italy

Comune di Padova

Italy

Comune di Piacenza

Italy

Comune di Ravenna

Italy

Comune di Torino

Italy

Comune di Venezia

Italy

Dublin City Council

Ireland

Évora

Portugal

Fafe

Portugal

Faro

Portugal

Free and Hanseatic City of Hamburg

Germany

Gemeente Rotterdam

Netherlands

Glasgow City Council

United Kingdom

Greater London Authority

United Kingdom

Greater Manchester

United Kingdom

Moscow Government

Russia

Roma Capitale

Italy

Santarém

Portugal

Seixal

Portugal

Stadt Zürich

Switzerland

Vila Nova De Gaia

Portugal

Village of Kadiovacik

Turkey

Ville de Monaco

Monaco

Vilnius City Municipality

Lithuania

 

LATIN AMERICA

Alcadia Distrital de Barranquilla

Colombia

Alcaldía Metropolitana de Caracas

Venezuela

Ayuntamiento de San Luis Potosí

Mexico

Bogotá Distrito Capital

Colombia

City of Brasília

Brazil

City of Buenos Aires

Argentina

City of Goiânia

Brazil

City of Salvador

Brazil

Ciudad de Juárez

Mexico

Ciudad de Mendoza

Argentina

Guatemala City

Guatemala

Heroic Puebla of Zaragoza

Mexico

Intendencia de Montevideo

Uruguay

Metropolitan Municipality of Lima

Peru

Mexico City

Mexico

Municipalidad de La Paz

Bolivia

Municipalidad de Provincial de Arequipa

Peru

Municipality of Belém

Brazil

Municipality of Belo Horizonte

Brazil

Municipality of Campinas

Brazil

Municipality of Curitiba

Brazil

Municipality of Fortaleza

Brazil

Municipality of Porto Alegre

Brazil

Municipality of Recife

Brazil

Município de Aparecida

Brazil

Prefeitura de Aracaju

Brazil

Prefeitura de Cuiabá

Brazil

Prefeitura de Florianópolis

Brazil

Prefeitura de Guarulhos

Brazil

Prefeitura de Maceió

Brazil

Prefeitura de Manaus

Brazil

Prefeitura de Natal

Brazil

Prefeitura de Rio Branco

Brazil

Prefeitura de São Bernardo do Campo

Brazil

Prefeitura de São Luís

Brazil

Prefeitura de São Paulo

Brazil

Prefeitura de Sorocaba

Brazil

Prefeitura de Vitória

Brazil

Prefeitura do Rio de Janeiro

Brazil

Prefeitura Municipal de Caieiras

Brazil

Prefeitura Municipal de Jaguaré

Brazil

Prefeitura Municipal de João Pessoa

Brazil

Prefeitura Municipal de Macapá

Brazil

San Salvador

El Salvador

Santiago de Cali

Colombia

Santiago de Guayaquil

Ecuador

 

EAST ASIA

Ansan City

South Korea

Changwon City

South Korea

Cheongsong County

South Korea

Chuncheon City

Korea

City of Hiroshima

Japan

City of Nagoya

Japan

City of Shenzhen

China

City of Yokohama

Japan

Gapyeong County

South Korea

Geoje City

South Korea

Geumsan County

South Korea

Gokseong County

South Korea

Government of Hong Kong Special Administrative Region

Hong Kong

Gurye Metropolitan Government

South Korea

Gwangju Metropolitan Government

South Korea

Gwangyang Metropolitan Government

South Korea

Haenam County

South Korea

Hoengseong County

South Korea

Hongcheon County

South Korea

Hwacheon County

South Korea

Imsil County

Korea

Incheon Metropolitan Government

South Korea

Jangheung County

South Korea

Jangseong County

South Korea

Jecheon City

South Korea

Jeju City

South Korea

Jeongseon County

South Korea

Kaohsiung City Government

Taiwan

Miryang City

South Korea

Mokpo City

South Korea

Nonsan City

South Korea

Pyeongtaek City

South Korea

Samcheok City

South Korea

Seocheon County

South Korea

Seogwipo City

Korea

Seoul Metropolitan Government

South Korea

Shinan Metropolitan Government

South Korea

Suwon City

South Korea

Taipei City Government

Taiwan

Tokyo Metropolitan Government

Japan

Tongyeong City

South Korea

Wonju City

South Korea

Yoenggwang County

South Korea

 

NORTH AMERICA

City of Atlanta

USA

City of Austin

USA

City of Baltimore

USA

City of Benicia

USA

City of Boston

USA

City of Brandon

Canada

City of Burlington

USA

City of Calgary

Canada

City of Chicago

USA

City of Cleveland

USA

City of Columbus

USA

City of Dallas

USA

City of Denver

USA

City of Detroit

USA

City of Edina

USA

City of Edmonton

Canada

City of Fort Wayne

USA

City of Fort Worth

USA

City of Hamilton

Canada

City of Houston

USA

City of Las Vegas

USA

City of Lexington

USA

City of London

Canada

City of Long Beach

USA

City of Los Angeles

USA

City of Miami

USA

City of Minneapolis

USA

City of New Orleans

USA

City of Philadelphia

USA

City of Phoenix

USA

City of Pittsburgh

USA

City of Portland, Oregon

USA

City of Richmond

USA

City of San Antonio

USA

City of San Diego

USA

City of San Francisco

USA

City of San José

USA

City of Saskatoon

Canada

City of Seattle

USA

City of St Louis

USA

City of Toronto

Canada

City of Vancouver

Canada

City of Victoria

Canada

City of Winnipeg

Canada

District of Columbia

USA

New York City

USA

Park City, UT

USA

Ville de Montreal

Canada

 

SOUTH ASIA AND OCEANIA

Bangkok Metropolitan Administration

Thailand

City District Government Karachi

Pakistan

City of Melbourne

Australia

City of Sydney

Australia

Dhaka North City Corporation

Bangladesh

Dhaka South City Corporation

Bangladesh

Hanoi City

Vietnam

Ho Chi Minh City

Vietnam

Jakarta City Government

Indonesia

Singapore Government

Singapore

Wellington City Council

New Zealand

 

About CDP
CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information.  CDP works with market forces, including 767 institutional investors with assets of US$92 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them.  CDP now holds the largest collection globally of primary climate change, water and forest risk commodities information and puts these insights at the heart of strategic business, investment and policy decisions.  C40 and Bloomberg Philanthropies are strategic partners of CDP’s cities program.  Please visit www.cdp.net or follow us @CDP to find out more.

About AECOM
Ranked as the #1 engineering design firm by revenue in Engineering News-Record magazine’s annual industry rankings, AECOM is a premier, fully integrated infrastructure and support services firm, with a broad range of markets, including transportation, facilities, environmental, energy, water and government.  With approximately 45,000 employees — including architects, engineers, designers, planners, scientists and management and construction services professionals — serving clients in more than 150 countries around the world, AECOM is a leader in all of the key markets that it serves.  AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural and social environments.  A Fortune 500 company, AECOM had revenue of $8.0 billion during the 12 months ended March 31, 2014.  More information on AECOM and its services can be found at www.aecom.com.

About C40 Cities Climate Leadership Group (C40)
The C40 Cities Climate Leadership Group (C40) is a network of large and engaged cities from around the world committed to implementing meaningful and sustainable climate-related actions locally that will help address climate change globally. C40 was established in 2005 and expanded via a partnership in 2006 with President William J. Clinton’s Climate Initiative (CCI). The current chair of the C40 is Rio de Janeiro Mayor Eduardo Paes; the 108th Mayor of New York City Michael R. Bloomberg serves as President of the Board. To learn more about the work of C40 and our cities, please visit www.c40.org, follow us on Twitter @c40cities and like us on Facebook at C40Cities.

 

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For media information:

CDP

AECOM

C40

Catherine von Altheer
Communications manager
+ 44 (0) 20 7970 5682
+ 44 (0) 7794 003 903
catherine.vonaltheer@cdp.net

Erik Miller
Manager,
corporate communications
+1.415.955.2804
erik.miller@aecom.com

Mike Marinello
Global communications director
+ 1  212 617 2383
mimarinello@bloomberg.net
 

 

 

Keywords: Research, Reports & Publications | AECOM | C40 Cities Climate Leadership Group | CDP | Climate Change Risk | Environment | Protecting our Capital | Research, Reports & Publications | Responsible Business & Employee Engagement

CAMPAIGN: Cities for People

CONTENT: Press Release