Implications for the Business
This domain covers three areas: Risks and Opportunities, Climate Finance, Managing Change and the Ecosystem. It aims to inform non-executive directors on the physical and transition risks to Business and how acting strategically can bring opportunities to businesses. It contains information and discussions on climate mitigation and adaptations at the corporate level, pathways to reduce emissions, use of carbon markets, and implementation strategies considering each stakeholder and the organization's ecosystem. These considerations are required to address scopes 1 (direct emissions), 2 (indirect emissions related to the operation) and 3 (indirect emissions in the company's value chain) effectively.
Implication for Business is the topic chosen for the third seminar of the Climate Governance Singapore to be delivered in May 2022.
*For essential reading
Risks and Opportunities
| *World | Risks and Opportunities of Climate Change This article discusses four business risks associated with climate change and some ideas for how investors can play a role in mitigating them through their portfolio investments. |
Morgan Stanley, 2021 |
| *World | The Risks and Opportunities of Climate Change Part 1: Physical Impacts of Climate Change Part 2: Climate Change Related Regulation Part 3: Business Transition Risks & Opportunities Part 4: Fiduciary & Director's Duties and Legal Risks for Companies Part 5: License to Operate/Reputational Risk These reports identify five critical areas of climate change risk and opportunity facing investors today and into the future. |
First Sentier Investors, 2020 |
| Asia | Winds of Change: Low Carbon Investing in Asia This report presents investor insights on how the market is defining and investing in green or climate aligned opportunities, and what barriers to the investment they continue to face. |
AIGCC, 2019 |
| World | 10 Business Myths on Climate Change This article discusses common misconceptions preventing businesses from turning climate risks into greater resilience and opportunity. |
KPMG, 2021 |
| World | Green Versus Brown Comparing the Employment Impacts of Energy Efficiency, Renewable Energy, and Fossil Fuels Using an Input-output Model This article presents a method of using Input-Output (I-O) tables to create clean energy industries that do not exist in I-O tables. This approach allows researchers to evaluate public and private spending on clean energy and compare it to the effects of spending on fossil fuels. |
Economic Modelling, 2017 |
| World | Opportunity 2030: The Standard Chartered SDG Investment Map This study details the specific investment opportunity in 15 high-growth markets across Asia and Africa. Achieving universal access to electricity represents the greatest opportunity for private investors, followed by funding significant improvements to transport infrastructure, full digital inclusion and universal access to water and sanitation. |
SCB, 2020 |
Climate Finance
| *World | Climate Finance Markets and the Real Economy - Sizing the Global Need and Defining the Market Structure to Mobilize Capital This report provides a roadmap for how to accelerate the evolution of climate finance and defines the role capital market participants can play to facilitate the transition to a low-carbon economy in line with their responsibilities to serve clients, investors, and the societies in which they operate. |
GFMA, 2020 |
| *Singapore | Credible Decarbonisation and Transition for Corporates in Asia This paper gives a practical overview and broad understanding of climate change mitigation pathways for corporates. It blends the science and practical knowledge for management and senior practitioners within firms seeking a more profound understanding of decarbonisation efforts. |
SGX, 2021 |
| *Singapore | Sustainability Report 2020/21 These reports set out Singapore’s strategies on climate resilience and environmental sustainability to strengthen the resilience of its financial sector to environmental risks, develop a vibrant green finance ecosystem, build a climate-resilient reserves portfolio and incorporate sustainable practices in our organisations. |
MAS, 2020/21 |
| World | The Oxford Principles for Net Zero Aligned Carbon Offsetting This report helps clarify questions for those who want to design and deliver rigorous voluntary net-zero commitments and develop a high-quality carbon market. |
University of Oxford, 2020 |
| World | Updated View of the Global Landscape of Climate Finance 2019 This report presents an overview of global climate-related primary investment available since 2012. It aims to track investment from the public and private sectors in activities that address and respond to climate mitigation and adaptation actions. |
CPI, 2020 |
| World | Taskforce on Scaling Voluntary Carbon Markets – Phase II Report & Taskforce on Scaling Voluntary Carbon Markets – Technical Appendix These reports provide recommended actions for the most pressing pain-points facing voluntary carbon markets. |
TSVCM, 2021 |
| World | Wall Street’s Favourite Climate Solution is Mired in Disagreements This article discusses the results of several interviews with actors involved in the voluntary carbon market initiative. It reveals impasses over make-or-break issues such as which companies can use offsets to reach their climate goals and whether credits based on avoiding emissions should be part of net-zero plans. |
Bloomberg Quint, 2021 |
| World | The State of Internal Carbon Pricing This article looks at data from companies that have disclosed information from their internal carbon-pricing programmes. |
McKinsey, 2021 |
| Singapore | Temasek and BlackRock Launch Decarbonization Investment Partnership This article introduces the partnership between Temasek and BlackRock to launch a series of late-stage venture capital and early growth private equity investment funds that will focus on advancing decarbonisation solutions to accelerate global efforts to achieve a net-zero economy by 2050. |
Temasek News, 2021 |
| World | Battling Climate Change Will Cost Trillions. Wall Street Is Paying Attention This article discusses the involvement of investment companies in tackling climate change. |
Barron’s, 2021 |
| World | Voluntary Carbon Markets: Why They Matter and the Next Steps to Scale Up This document discusses the new standards for carbon markets and how to navigate the market. |
S&P Global Platts, 2021 |
Managing Change and the Ecosystem
| *World | Aim Higher: How Can Business Help Achieve the 1.5°C Ambition in the Paris Agreement? This report sets out some of the findings from a series of events organized around the role business needs to play in delivering 1.5°C, looking at feasibility and challenges for businesses in making emissions reductions at a level compatible with 1.5°C of warming. |
Carbon Trust, 2017 |
| *World | Enterprise Risk Management: Applying Enterprise Risk Management to Environmental, Social and Governance-related Risks The purpose of the guidance is to help organisations apply ERM principles and practices to ESG-related risks. To this extent, the guidance applies COSO’s ERM Framework Enterprise Risk Management—Integrating with Strategy and Performance. |
COSO, WBCSD, 2018 |
| *World | Titans or Titanics? Understanding the Business Response to Climate Change and Resource Scarcity This report seeks to understand and explain how large businesses are responding to climate change and resource scarcity today, incorporating insights from qualitative interviews with industry experts, alongside independent market research into the views of global corporate leaders. |
Carbon Trust, 2015 |
| *Singapore | Handbook on Implementing Environmental Risk Management for Asset Managers, Banks and Insurers The handbook is intended to be helpful for financial institutions of all sizes. It applies across sectors, and implementation should reflect relevant sector-specific and business-specific characteristics. |
GFIT, 2021 |
| World | Feeling the Heat? Companies are Under Pressure to Act on Climate Change and Need to Do More This report presents the results of interviews with 1,168 CFOs regarding what their companies are doing on climate change. |
Deloitte Insights, 2019 |
| World | Supply Chain Transformation and Resource Efficiency - How Can Big Businesses Save Billions? This paper examines the key drivers of supply chain risk and opportunity for companies through the perspective of energy and climate change. It proposes a comprehensive approach to addressing this challenge by looking at supplier-focused actions, as well as re-thinking products and business models. |
Carbon Trust, 2016 |
| World | Net-Zero Challenge: The Supply Chain Opportunity – Insight Report This report focuses on the supply-chain emissions that happen upstream from a company, often while creating products or services that the company buys as well as on the Scope 1 and 2 emissions of the respective end consumer-facing companies. |
WEF in collab with BCG, 2021 |
| World | Transparency to Transformation: A Chain Reaction This report uses CDP’s supply chain programme data submissions to evaluate the activities of reporting organisations as a group and to identify meaningful insights about the supply chain impacts on setting science-based targets, zero-deforestation and water security targets. |
CDP, 2021 |
| World | Emerging Findings - How Companies are Managing the Transition to a Low-carbon, Resilient and Valuable Future The purpose of this report is to share the emerging insights from Interviews capturing company-specific insights into climate commitments, the organisation of climate programmes, the most impactful initiatives, their climate and commercial impact, barriers to progress and lessons learned. |
Goal 13 Impact Platform, 2020 |
| Singapore | MAS Guidelines on Environmental Risk Management for Asset Managers, Banks and Insurers Guidelines on Environmental Risk Management (Asset Managers) Guidelines on Environmental Risk Management (Banks) Guidelines on Environmental Risk Management (Insurers) These guidelines aim to enhance the resilience to and management of environmental risk through setting out sound risk management practices. |
MAS, 2020 |
| World | Two Degrees of Transformation - Businesses are Coming Together to Lead on Climate Change. Will You Join Them? This paper reveals what is already happening, bringing together examples from around the world of smart working, new thinking and innovation. It highlights examples that others can follow, and that will transform happen faster than ever before. |
WEF, 2018 |
| World | Climate Scenarios and Consumer Business: Four Futures for a Changing Sector This report presents and analyses the business impact under four scenarios: fossil-fuelled global growth, an unequal world, regional rivalry, steady path to sustainability. |
Deloitte, 2020 |