Assessing our climate approach

The report analyses the level of risk inherent in the current approach to climate change and identifies potential solutions for stabilising the climate and accelerating action towards reducing emissions. It introduces the concept of a tipping point, a non-linear change in a system that may be difficult or impossible to reverse. The paper lays out how risk-management techniques can be applied to the climate-change problem. It also explores the actuarial approach to managing risk and explains that risks may be categorised by likelihood (the chance that a risk event may occur) and severity (the impact of an event should it occur).

Risky business

The report examines how climate change could impact the global economy and business. It argues that limited consideration of tail risks and adverse climate scenarios has led to under-prediction on key attributes of global warming. The report recommends viewing 1.5˚C similar to a ruin scenario for society. The report suggests that the likelihood of severe climate risks and their impact increase the closer we get or go beyond a 1.5˚C limit.

Solutions for a stable climate

The report presents potential solutions for stabilising the climate. It highlights the need to reduce emissions drastically while ensuring an orderly, just transition. The report encourages the removal of CO2 from the atmosphere in vast quantities and the testing and deployment of greenhouse gas removal solutions. The authors suggest repairing broken parts of the climate system, starting with the Arctic, in an attempt to reverse local changes and stop the cascade effects of said changes through global climate systems.

Accelerating action

The report details the compelling reasons to believe that climate action can be accelerated. The authors suggest that societal shifts can be promoted by educating stakeholders to be carbon and climate literate. They suggest changing the story from one of cost to one of opportunity. The authors argue that climate literacy around risks, impacts, and solutions is necessary to ensure leaders and decision-makers understand the context and why wise decisions need to accelerate.

The just transition

The report explores the complexities of achieving a just transition and the need for education on carbon literacy. The authors highlight the vital role finance can play in decarbonisation and emphasise the importance of transition finance to some large companies that have the scale and capability to decarbonise. The report explains that the transition should seek to rebuild trust between the Global North and the Global South, address the challenges of providing capital to developing countries, and include and empower all communities. The authors suggest that just transformation must be led by government policy.