Randy Heffernan, Palisade’s Vice President, wrote a recently featured piece in the Risk Management Monitor discussing the looming risks of climate change. The piece, titled ‘Analyzing the Real Costs of Climate Change’ details how businesses and organizations are in for serious changes in the coming decades thanks to increasingly unpredictable weather patterns.
Heffernan references a report published earlier this year, “Risky Business: The Economic Risks of Climate Change in the United States,” which was co-chaired by business experts Michael R. Bloomberg, Henry Paulson and Tom Steyer and which quantifies and publicizes the economic risks posed by a changing climate.
“Are companies prepared for skyrocketing energy costs to combat extreme heat? Can farmers handle average crop losses of up to 73%? Should businesses invest in oceanfront property that is virtually guaranteed to flood?,” Heffernan asks in his piece.
Some organizations are preparing themselves. The Australian Federal Government hired AECOM, a professional technical and management support company, to run Monte Carlo simulation-based evaluations on flooding risk in populated areas, such as the Narabeen lagoon, near Sydney. “Because climate change is expected to increase flooding in the Narrabeen catchment over the coming century, decision-makers needed a clearer understanding of the different possible adaptation measures,” Heffernan says.
He goes on to say, “While many companies may be resistant to change, the [Risky Business] report makes an undeniable case; we cannot afford to ignore the momentous climate risks that threaten our near- and long-term future.”