New IPCC Report Underscores Need to Adapt
Action must be taken now to develop and invest in adaptive solutions to climate change.
On Friday, the Intergovernmental Panel on Climate Change, (IPCC), the leading international climate assessment body, released a critical report detailing the impacts of climate change on the planet, entitled: Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation (SREX). SREX not only serves as an outlook on the near- and long-term effects of climate change; it makes a strong case for reducing greenhouse gas emissions and for urgent adaptive action that builds resilience and minimizes risk from climate change.
Climate adaptation is a rapidly evolving issue, but the findings from SREX send a clear, twofold message to investors and companies alike: climate change is currently and will, with increasing severity, continue to impact myriad sectors of the economy—especially agriculture, energy, water, health, tourism, and transportation—and action must be taken now to develop and invest in adaptive solutions.
The report is a stark reminder that governments, investors, and businesses must take action to mitigate climate change by reducing greenhouse gas emissions, and by developing and deploying energy efficiency and alternative energy technologies, cleaner transportation options and lower carbon fuels. Calvert and other investors continue to call on governments to establish public policy frameworks that provide incentives to the market that accelerate the transition to a low carbon economy.
Calvert Invests in Adaptation
Calvert believes that climate change is a challenge and opportunity for the private sector. Leading and competitive companies must not only commit to mitigating climate change by reducing their carbon footprint, but must also strategically plan for and adapt to climate change impacts.
Calvert is a founding member of the Partnership for Resilience and Environmental Preparedness (PREP), a coalition of partners including Starbucks, Swiss Re, Entergy, and Levi Strauss & Co., and Oxfam America, formed to address climate change impacts on businesses and communities. Calvert is also actively encouraging policy makers to make sound policy decisions that encourage resilience-building and preparation for climate change both here and abroad.
We drive investments towards adaptation and resilience-building throughout our investment portfolio. Through Calvert Signature Strategies®, we encourage companies to develop forward-thinking climate strategies that address risks and opportunities from climate change. Earlier this year, Calvert filed a proposal with the J.M. Smucker Company, owners of Folgers and other coffee brands, asking it to manage risk to its coffee business from the physical impacts of climate change. The Calvert Global Water Fund, part of the Calvert Solution Strategies®, offers a unique opportunity to invest in adaptation through companies focused on water engineering and infrastructure, water conservation and re-use, and water treatment technologies. Finally, investments through our Special Equities program helps spur innovations such as sustainable yield enhancing biopesticides and soil moisture monitoring for farmers.
Calvert Investments, Inc., 4550 Montgomery Avenue, Bethesda, MD 20814.