Archive for April, 2015

COP 21 : Time to help firms change the climate

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In just over 200 days, France will be hosting the 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change. Politicians will try to find solutions to keep global warming under +2°C by the year 2050. The objective is abstract. It is also a long way away. Since there is no “global” government, COP 21 is likely to end with no more than a list of good intentions. Firms however are “global”. What if we approached COP 21 in a different way this time?

In March 2015, the average temperature across global land and ocean surfaces was the highest in the 1880–2015 record, surpassing the previous record of 2010. In fact, the temperature in the first three months of the year was also the highest in the 1880–2015 record, surpassing the previous record of 2002 [1]State of the Climate 2015, http://ncdc.noaa.gov/sotc/. Since 1992 in Rio de Janeiro, conference after conference, politicians and lobbyists have tried to engage economic actors into new ways of working to stabilize the climate.

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References   [ + ]

1. State of the Climate 2015, http://ncdc.noaa.gov/sotc/

Does Geographic Diversification Work to Mitigate a Company’s Weather Risk?

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Meteo Protect has released a ground-breaking new study tackling the decades-old presumption that companies operating in different regions mitigate the losses sustained in one region as a result of unfavourable weather in another. Multinationals take note: when it comes to managing weather risks, you may be steering your ships right into the storm.

Weather affects sales volumes and profits of many firms in many sectors. The risk to which firms are exposed is not a matter of regular seasonal fluctuations but rather deviations from the seasonal cycle. For example, when the summer is cooler than normal, a brewer sells less beer, and heating demand is lower if winter is warmer than usual. Overall, it is estimated that 70% of the firms are exposed to weather risk and the financial losses caused by unseasonal weather can be very significant.

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