The Climate Intelligent Organization E-Book

Iggy Bassi

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 307

Veröffentlichungsjahr: 2025

Beschreibung

Learn to make sound business decisions on a rapidly changing planet

In The Climate Intelligent Organization, renowned entrepreneurs and climate intelligence pioneers Iggy Bassi and Karan Chopra, deliver an intuitive and practical guide to the transformative power of AI-driven Unified Climate Intelligence (UCI). Written with the business practitioner in mind, the book showcases how holistic climate analysis can be integrated into decisions, growth plans, and investments as organizations navigate the challenges and opportunities of climate change.

You'll discover:

• How UCI can redefine competitive advantage and reshape leadership.
• Strategies to improve climate-related financial performance.
• A roadmap for driving resilient value creation in the new climate economy.

Perfect for managers, executives, directors, policy makers, entrepreneurs, founders, and other business leaders, The Climate Intelligent Organization will also prove invaluable to finance and sustainability professionals seeking new insights into how to adapt to a changing planet.

Leseprobe

Table of Contents

COVER

TABLE OF CONTENTS

TITLE PAGE

COPYRIGHT

PREFACE AND INTRODUCTION

PART I: The Imperatives of Climate

CHAPTER 1: THE GREAT ACCUMULATION PROBLEM

References

CHAPTER 2: THE SCIENCE OFCLIMATE CHANGE

References

CHAPTER 3: CLIMATE RISK AND OPPORTUNITY

References

CHAPTER 4: A DEEP DIVE INTO RISK TYPES

Overview

CHAPTER 4A: PHYSICAL RISK

References

CHAPTER 4B: TRANSITION RISK

CHAPTER 4C: NATURE RISK

Holistic Risk Consideration

CHAPTER 5: THE POLICY RESPONSE TO CLIMATE CHANGE

Existing Reporting Frameworks

Next‐Generation Reporting Frameworks

Nature‐Related Reporting Frameworks

References

CHAPTER 6: THE CLIMATE INTELLIGENCE REVOLUTION

PART II: Building a Climate Intelligent Organization

CHAPTER 7: THE EMERGING OPPORTUNITY OF UNIFIED CLIMATE INTELLIGENCE (UCI)

References

CHAPTER 8: UCI – THE NEW SUPERPOWER FOR ORGANIZATIONS

Physical Risk:

A Coastal Infrastructure Expansion

Transition Risk:

A Green Energy Company

Nature Risk:

An Agricultural Investment Project

UCI Framework Case Study: A Comprehensive Strategy for Climate Responsiveness

Reference

CHAPTER 9: UCI FOR COMPETITIVE AND COLLABORATIVE ADVANTAGE

Endnote

CHAPTER 10: UCI FOR TRANSFORMATIVE LEADERSHIP

CHAPTER 11: CATALYZING UCI THROUGH FINANCIAL SERVICES

CHAPTER 12: UCI AS A CATALYST FOR BROADER SOCIETAL CHANGE

The Path Forward for Climate Opportunity

The Future of Organizational Climate Intelligence

ACKNOWLEDGMENTS

ABOUT THE AUTHORS

INDEX

END USER LICENSE AGREEMENT

List of Illustrations

Chapter 2

Figure 2.1 Examples of positive feedback loops.

Chapter 9

Figure 9.1 Example output from QuantEarth

TM

.

Guide

Cover

Table of Contents

Title Page

Copyright

Preface and Introduction

Begin Reading

Acknowledgments

About the Authors

Index

End User License Agreement

Pages

i

ii

iii

vii

viii

ix

xiii

xiv

xv

xvi

xvii

xviii

xix

xx

xxi

xxii

xxiii

1

3

4

5

6

7

8

9

10

11

13

14

15

16

17

18

19

20

21

22

23

24

25

27

28

29

30

31

32

33

34

35

36

37

38

39

41

42

43

44

45

46

47

48

49

51

52

53

54

55

56

57

58

59

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

105

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

168

169

170

171

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

189

190

191

192

193

194

195

196

197

198

199

200

201

203

205

206

207

208

209

210

211

212

213

214

215

Praise for The Climate Intelligent Organization

It is exciting to see such a practical approach to addressing climate change, seeking opportunities to improve rather than being despondently mired in crisis. Climate change has become a social movement as much as physical changes, so businesses and governments need UCI's guidance to stay atop the rapidly shifting political and environmental landscapes.

—Prof. Ilan Kelman, University College London

If you care about future‐proofing your business for climate vulnerabilities, this book is essential reading. A thorough and insightful guide for leaders to build differentiated products and create value in an ever‐changing world.

—Vrushali Gaud, Director at Google and former Managing Director of Climate and Sustainability Services at Accenture

Doing what they do best, climate data intelligence, Iggy and Karan provide leaders with a blueprint for value creation amidst climate change.

—Courtney Elizabeth Stipe Holm, The Holm Edit and Holm Advisory (former Global VP Impact, Sustainable Futures at Capgemini)

Sure‐footed and admirably clear, this is an invaluable guide to navigating the greatest challenge of our time.

—David Shukman, Speaker, Consultant and former BBC News Science Editor

We hear a lot about the state of climate change, but not nearly enough about the practical steps businesses can take to capitalize on digital technologies and truly integrate climate thinking in their operations. I am excited to see how Unified Climate Intelligence changes the game, hopefully speeding up the energy transition and reducing its inevitable bumpiness.

—Diana Fox Carney, Advisor, Helios Climate and Eurasia Group

Iggy Bassi and Karan Chopra, two accomplished and highly respected leaders within the world of sustainability, have written a practical climate action guide for leaders and stakeholders in every industry. More than a definitive overview of the climate crisis, this book is an economics and strategy‐based road map for leaders who recognize that their climate‐related actions can result in notable financial growth and reduced risks in their organization. It's a must‐read for empowering data‐driven, positive environmental change.

—Dr. Jonathan Reichental, Founder & CEO of Human Future, Professor, and Author

Decision makers who really aim to contribute to build a sustainable and more just society have to take climate science into account, and push to achieve net zero greenhouse gas emissions as quickly as possible. This book offers a valuable guide on how to achieve this for business and policy leaders.

—Professor Roberto Buizza (Physics), Interdisciplinary Centre on Sustainability and Climate, Sant'Anna School of Advanced Studies, Italy, former Lead Scientist at ECMWF

As organizations lean into a constellation of climate and nature related risks and opportunities, the concept of Unified Climate Intelligence (UCI) can enable the creation of environmental, social and economic value. This book offers important guidance for organizations wanting to harness UCI to lead in the climate economy.

—Munish Datta, Director of Sustainability, Fellow, Advisor, Trustee

Iggy and Karan have developed the essential operating system for CEOs, leadership teams, board members and investors to harness future intelligence in tackling the climate crisis. Their Unified Climate Intelligence empowers resilient, climate‐aligned decisions and actions, enabling systemic adaptation over superficial “fixes”.

—Roger Spitz, President, Techistential and Chair, Disruptive Futures Institute

As Darwin found, it's not the fittest that survive in a changing environment, but the most adaptable. Based on their deep understanding of the latest technology and a rich experience as entrepreneurs, Iggy Bassi and Karan Chopra offer tools and insights for organizations not just to survive, but to thrive. A veritable treasure trove for business leaders looking for new, positive cohesive strategies for opportunity and success in a changing climate reality.

—Maurits Dolmans, Senior Counsel, Cleary Gottlieb Steen & Hamilton LLP, London. Advisor to UNFCCC

Too many businesses are flying blind into an unpredictable future, mistaking their rear‐view mirror for their steering wheel, missing essential signals that are hiding in plain sight. This book will show you how to sift the signals from the noise, and navigate an endlessly shifting landscape of the climate challenge and the meta‐crisis world.

—Gil Friend, CEO, Natural Logic, Inc., MD, Critical Path Capital, and former Chief Sustainability Officer of the City of Palo Alto

THE CLIMATE INTELLIGENT ORGANIZATION

BUILD A PROSPEROUS AND RESILIENT FUTURE FOR THE PLANET THROUGH AI‐POWERED CLIMATE INTELLIGENCE

IGGY BASSI

KARAN CHOPRA

This edition first published 2025Copyright © 2025 by Iggy Bassi & Karan Chopra. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse material from this title is available at http://www.wiley.com/go/permissions.

The right of Iggy Bassi & Karan Chopra to be identified as the authors of this work has been asserted in accordance with law.

Registered Office(s)John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, USAJohn Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

Editorial OfficeThe Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UKFor details of our global editorial offices, customer services, and more information about Wiley products

visit us at www.wiley.com.

Wiley also publishes its books in a variety of electronic formats and by print‐on‐ demand. Some content that appears in standard print versions of this book may not be available in other formats. Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book.

Limit of Liability/Disclaimer of Warranty

While the publisher and authors have used their best efforts in preparing this work, they make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives, written sales materials or promotional statements for this work. The fact that an organization, website, or product is referred to in this work as a citation and/or potential source of further information does not mean that the publisher and authors endorse the information or services the organization, website, or product may provide or recommendations it may make. This work is sold with the understanding that the publisher is not engaged in rendering professional services. The advice and strategies contained herein may not be suitable for your situation. You should consult with a specialist where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Library of Congress Cataloging‐in‐Publication Data is Available:

ISBN 9781394192397 (Cloth)ISBN 9781394228553 (ePDF)ISBN 9781394228539 (ePub)

Cover Design: WileyCover Image: © Floriana/Getty Images

This book is dedicated to our families, whose patience and unwavering support have been our anchors through the challenges of pioneering climate solutions. A special mention to our children – Jasmin, Camilla, Surina, and Kalil – who inspire us daily to address the climate crisis with urgency and hope. We also extend our deep gratitude to the climate scientists and researchers, whose groundbreaking work forms the bedrock of climate intelligence. To the visionaries and entrepreneurs driving the climate movement, and the forward‐thinking companies and their internal champions: your bold leadership is crafting a world that harmonizes human activity with the rhythms of nature. Your collective endeavors are essential to safeguarding the human project.

PREFACE AND INTRODUCTION

A PERSONAL JOURNEY THROUGH THE CLIMATE DIALOGUE

Welcome to The Climate Intelligent Organization. This book reflects our collective experience over the past quarter century, offering a deep dive into the evolving narrative of climate change. Enriched with our insights, we aim to transform how organizations perceive and engage with the climate challenge by introducing Unified Climate Intelligence (UCI). UCI represents the next frontier in climate strategy and technology, shifting the focus from risk to creating opportunities and accelerating climate‐aligned growth with tangible value creation.

Our journey began in 2008, while advising a sovereign wealth fund manager on emerging economies. Dismissed then as irrelevant, climate change is now at the forefront of economic strategy for that same entity. This dramatic shift underpins the global awakening to the urgency of climate action – a transformation we have been a part of, advising companies and governments on competitiveness, growth and resource security. Our professional paths have taken us from observing sustainability and climate change as mere afterthoughts to driving the narrative toward urgent, actionable change, where opportunities for innovation, value, and risk management coexist. This personal journey, filled with both frustrations and triumphs, is the wellspring from which The Climate Intelligent Organization originates.

Our experiences have revealed a stark disconnection between environmental sustainability and economic decision making. This realization spurred a profound shift in our careers. We ventured into sustainable agribusiness in West Africa, confronting first‐hand the harsh realities of climatic volatility on food security. This venture was not just about business; it was about deeply understanding and mitigating the impacts of climate change at a community level. The resilience and adaptation strategies we developed there were early iterations of what we now define as UCI.

However, our pivotal moment came with the founding of Cervest, a data analytics platform designed to predict and quantify physical climate hazards. Launched as nations around the world committed to the Paris Agreement, Cervest and its flagship product EarthScan was our response to the critical need for tools that could translate complex climate data into actionable business insights. We quickly recognized that complex data, when transformed into decision‐useful insights, could help companies not only understand but also communicate climatic impacts to regulators demanding new answers. Our frustration grew as climate discussions remained peripheral, with no binding agreement until the Paris breakthrough, yet climate risks and CO2 levels continued to rise. Our first‐hand experience on the farm, especially when a “50‐year wind event” damaged half our grain milling factory, taught us the urgent need for predictive climate intelligence. If we had possessed better insights earlier, we would have altered the engineering decisions for our food processing factory and farming infrastructure to better withstand such events.

From Risk to Opportunity: A Quantum Leap with Unified Climate Intelligence

For too long, climate change has been viewed predominantly as a paralyzing risk, overshadowing its potential as a catalyst for innovation and value creation. Our professional journeys, characterized by both challenges and insights, have illuminated the limitations of viewing climate solely through a lens of risk. This perspective not only stifles the urgency for proactive measures but also blinds us to the vast opportunities that proactive climate action can present.

However, the narrative is changing. A technological revolution is well underway, reshaping our approach to climate challenges. Advancements in AI, machine learning, big data and the declining costs of clean technologies are ushering in a new era. These developments allow us strategic foresight to understand and react to climate dynamics much earlier and more accurately than ever before, unlocking tremendous value for businesses and society alike.

The emergence of radical transparency in climate reporting fundamentally changes the business landscape. With increased visibility into climate risks and opportunities, there is no longer “anywhere to hide.” This transparency compels businesses to be proactive in managing their climate impact, not just for compliance, but as a strategic imperative to maintain a competitive advantage. Previously, a company's climate strategy might have been a private matter. Now, these strategies are openly quantified and scrutinized by B2B partners, banks, regulators and insurance companies. This introduces a game theory dimension to climate action. Furthermore, advancements in Generative AI (Gen‐AI) hold immense potential to revolutionize and democratize climate intelligence. Gen‐AI can be harnessed to analyze vast datasets, identify complex patterns, generate more nuanced climate insights and make this all contextually relevant in natural language. This, in turn, can inform the development of even more sophisticated UCI frameworks, enabling businesses to permanently transform their relationship with climate by making data‐driven decisions that not only mitigate risks but also capitalize on emerging opportunities in the low‐carbon economy.

Companies with robust climate strategies that demonstrably mitigate risk and capitalize on opportunities will be seen as more attractive partners, more creditworthy borrowers, and more insurable entities. Conversely, those lagging behind will face disadvantages in all these areas.

UCI is at the forefront of this revolution, transforming how we analyze climate data. Traditional methods, often fragmented and isolated, fail to provide a holistic view of climate impacts. UCI transcends these limitations by integrating diverse data sources – ranging from climate science and financial metrics to AI analysis – into a cohesive framework. This comprehensive approach provides a 360° view of climate risks and opportunities, empowering businesses to:

Identify and Prioritize Climate Action: Gain granular, quantified insights into how climate change and related policies could impact operations, supply chains and market dynamics.

Discover Hidden Opportunities: Explore new markets catalyzed by the low‐carbon transition, including innovative clean technologies.

Make Data‐Driven Decisions: Embed climate considerations into core business strategies to enhance decision making and future‐proof operations.

Enhance Resilience: Develop robust strategies to adapt to the changing climate and minimize potential disruptions.

Reduce Costs: Achieve greater resource efficiency and energy savings, enhancing operational efficiency and profitability.

By embracing UCI, businesses can shift from a risk‐averse posture to one where climate action is a strategic driver of innovation, value creation and long‐term resilience. This shift is not just theoretical but practical, as we have moved from focusing solely on risk to leveraging climate action as an opportunity for profound economic and social transformation. We see immense potential for climate intelligence to accelerate the transition toward climate‐aligned enterprises and cities, enhancing their viability, livability and economic prosperity.

This holistic understanding of UCI, which incorporates physical hazards, transition pathways, CO2 removal, nature conservation, resource optimization and fiscal incentives, is crucial. It allows for a deeper comprehension and management of climate‐related financial performance, propelling businesses and cities toward actions that are not only environmentally sustainable but also economically beneficial and socially necessary.

Beyond CO2: A Multifaceted Approach for a Polycrisis

The world has gone all‐in on net zero since the Paris Agreement, aiming to achieve a future where human activity no longer adds greenhouse gases to the atmosphere. This ambitious goal is undeniably necessary – it's the cornerstone of mitigating climate change and preventing catastrophic warming. However, a singular focus on net zero is myopic. We are living in a time of multiple, interconnected crises – a polycrisis. Climate change, biodiversity loss and ecological degradation are intricately linked, forming a complex web of environmental challenges.

The current approach, where many companies set far‐off net zero targets and often rely on carbon offsets to achieve them, is a dangerous oversimplification. While carbon offsets play a role, their limitations are becoming increasingly apparent. For instance, recent controversies surrounding the sourcing of carbon credits, such as those linked to forest fires in BP and Microsoft's case, highlight the need for permanence and robust verification systems. Focusing solely on decarbonization goals neglects the interconnected nature of these crises. As Iggy conveyed to the former US vice president Al Gore at COP 26, “we simply can't decarbonize our way to a climate‐aligned economy.” Reaching net zero emissions is crucial, but it's not the only piece of the puzzle. We need a multifaceted approach that factors in physical hazards, the depletion of natural capital and strategies for carbon removal.

The consequences of this short‐sighted approach are already unfolding. Climate hazards are exceeding the engineering design and resource capacity of many cities and infrastructure systems. Rising sea levels, extreme weather events, and heat waves are pushing these systems to their breaking points. Understanding the lag effect inherent in the Earth's systems is crucial it's akin to turning off a boiling pot of water; although we stop the heat in 2030, the water will continue to bubble for a long time. This delayed response means that even if we achieve net zero emissions tomorrow, the phenomena we've set in motion – like rising sea levels due to thermal expansion of oceans and melting glaciers, ocean acidification from increased CO2 absorption and ongoing global warming due to the current energy imbalance – will persist for decades. This enduring impact underscores the need for robust adaptation strategies, particularly to mitigate the devastating effects of heat. We must now prepare for a permanently altered climate, a change that will span generations.

Leadership and the Climate‐Intelligent Journey: A Tailored Approach

Strong leadership is the cornerstone of successful climate action. We've consistently observed that companies, cities, and countries that are ahead of the curve – those demonstrating progress in building a more resilient and equitable future – all have clear and decisive leadership at the helm. These leaders understand the urgency of climate action and possess the vision and commitment to translate that understanding into concrete strategies that drive value. Understanding and managing your climate‐related financial performance will become a core competency as we transition to a climate economy.

The Climate Intelligent Organization serves as a road map for leaders across all sectors, empowering them to embark on their unique “climate journey.” This journey is not a one‐size‐fits‐all proposition. Every organization, regardless of size, industry or location, faces a distinct set of challenges and opportunities when it comes to climate action. However, the tools we now possess, like UCI, can significantly accelerate progress on this journey.

The Role of the Climate‐Intelligent Leader

Climate‐intelligent leaders go beyond simply recognizing the importance of climate action. They actively champion it, fostering a culture of environmental responsibility within their organizations. Here are some key characteristics that define them:

Vision and Strategic Thinking: They possess a clear vision for a climate‐resilient future and translate that vision into quantified value and actionable strategies, aligned with the organization's overall goals.

Decision Making with Climate in Mind: Climate considerations are integrated into all aspects of decision making, from resource allocation to product development and investment strategies.

Communication and Transparency: They effectively communicate the organization's climate strategy and its rationale to stakeholders, fostering transparency and buy‐in.

Collaboration and Partnerships: Recognizing the interconnectedness of the climate crisis, they actively seek out partnerships with other organizations and stakeholders to drive collective change.

Tailoring Climate Intelligence: A Framework for Action

While the core principles of climate action are universal, the specific actions taken by organizations will vary depending on their context. This book equips you with the knowledge and tools to tailor climate intelligence to your organization's specific needs, offering a framework to navigate your unique climate journey effectively.

Climate Risk and Opportunity Assessment: The first step is to understand your organization's unique vulnerability to climate hazards, as well as potential opportunities that arise from transitioning to a low‐carbon economy. Tools like UCI are invaluable in this assessment, helping to identify where the future performance of your business could be most impacted or could benefit from innovative changes. UCI helps you translate climate risks and opportunities into financial terms, enabling you to understand your climate related financial performance in the past, present and future.

Setting Ambitious Yet Achievable Goals: Once you understand your baseline, it's crucial to establish ambitious yet achievable climate goals that align with your organization's long‐term vision. These goals could range from reducing emissions to enhancing resource efficiency, or even devising adaptation strategies to tackle specific climate risks. UCI empowers you to prioritize the areas of focus, to understand the cost of inaction and to quantify financial value that can be unlocked by achieving your goals. The aim is not just to mitigate risks but to also seize opportunities that drive competitive advantage and value creation.

Developing a Climate‐Intelligent Strategy: Translate your goals into a comprehensive strategy that outlines the specific actions your organization will undertake. This strategy should encompass operational changes, technological advancements, stakeholder engagement and an economic reevaluation to ensure sustainability efforts align with profitability. In the climate age, value creation and competitive dynamics must sync with environmental strategies, providing a robust framework for growth and resilience.

Implementation and Monitoring: Effective implementation of your climate strategy is crucial. Allocate resources wisely, establish clear ownership of initiatives and set up robust monitoring and evaluation systems to track progress and impact. This phase is vital for adjusting strategies in real‐time and demonstrating tangible benefits both internally and in the wider market.

Continuous Improvement: The climate landscape is constantly evolving, and so must your strategies. Regularly review your progress and adapt your approach as needed, staying informed about the latest advancements in climate intelligence tools and technologies. As risks intensify, there will be a shift toward policies that focus on de‐risking through value‐based approaches, influencing B2B relationships, trade agreements, and market access.

By following this framework and leveraging the transformative power of UCI, leaders across all sectors can embark on their unique climate journeys. This approach not only builds climate‐intelligent organizations but also positions them advantageously within new competitive equations that consider environmental impact as a core element of business success.

A Stark Reality: A Global Crisis Demands a Global Response

Climate change is the defining challenge of our generation. Since the landmark Earth Summit in Rio de Janeiro in 1992, a turning point in global environmental awareness, greenhouse gas emissions have continued to rise relentlessly. Despite international agreements and a growing public outcry, meaningful progress remains elusive. Time is a luxury we can no longer afford.

This book is not intended to be a chronicle of despair, but a clarion call to action. The science is unequivocal – the longer we delay decisive action, the more severe the consequences will be. The impacts of climate change are no longer hypothetical; they manifest globally through extreme weather events, rising sea levels and ecological disruptions. Twenty years ago, climate change was dismissed as primarily a problem for developing economies. This view grossly underestimated the interconnectedness of our planet. The past two decades have provided a harsh lesson as extreme weather events, rising temperatures and environmental degradation have become relentless realities impacting every corner of the globe – developed and developing economies alike. Climate change transcends borders and economic systems; it demands a global response.

In recent times, the acute risks posed by the COVID‐19 pandemic demonstrated how rapidly global entities can mobilize in the face of imminent threats. Climate change, while often perceived as a “disaster in slow motion,” requires the same level of urgency and unified action. Since the 1992 Earth Summit, CO2 levels have continued to rise, only dipping briefly during the global lockdowns of COVID‐19. We are currently on track for potentially catastrophic climate changes, with projected global temperature increases of up to 2.7°C, carrying severe consequences.

Yet, we are not without hope. The tools, technologies and ingenuity at our disposal today are unprecedented, enabling us to make significant advancements. This new arsenal of climate intelligence and technologies are galvanizing change, particularly among the younger generations who stand to inherit an Earth on the precipice, with the potential to be more liability than asset. These young people, globally connected and soon to be the world's primary economic drivers, demand a sustainable and equitable world.

Building a Climate Intelligent Future: A Roadmap

This book is carefully structured to provide you with the essential knowledge and tools needed to integrate climate intelligence into your organizational strategy. Part I: The Imperatives of Climate delves into the scientific foundations and the critical challenges and opportunities presented by climate change. This section explores the multifaceted nature of climate change, encompassing its impact on various sectors, alongside the evolving landscape of global climate policy. A dedicated chapter dives deeper into the intricate interplay between national and international policy frameworks, city‐level initiatives and sectoral efforts in driving climate action. This comprehensive understanding is crucial for businesses to navigate the evolving regulatory environment and identify opportunities for alignment with climate‐positive policies. This section sets the stage by laying down the foundational concepts necessary to grasp and implement UCI effectively within any organizational context.

In Part II: Building a Climate Intelligent Organization, the focus shifts from theoretical understanding to practical application. It delves into how businesses can harness UCI to drive strategic decision making and secure a competitive advantage. This segment illuminates how advancements in artificial intelligence, climate science and analytics have revolutionized our approach to managing climate data, offering businesses unprecedented insights into climate risks and opportunities. We explore the integration of UCI into corporate strategies, demonstrating how forward‐thinking companies have successfully navigated the transition to a climate‐conscious economy. This section underscores the importance of radical transparency in business operations and sustainability in corporate governance, providing real‐world examples and case studies that showcase the potential for businesses to not only comply with emerging regulations but also seize growth and innovation opportunities in an environmentally‐aware market landscape.

This book is not merely a theoretical exploration; it is a practical guide tailored for business practitioners, policy executives and public sector leaders. It aims to redefine the narrative around climate change from one of risk to one of opportunity and value creation. It also sheds light on the tools and technologies at our disposal to empower leaders to make climate aligned decisions that benefit the health of their businesses. Through the lens of Unified Climate Intelligence, decision makers across enterprises, cities, states and non‐profits will be equipped to effectively prioritize resources, mitigate risks, adapt and foster sustainable development and new sources of value.

As we embark on this journey together, we invite you to join us in unlocking the immense value of climate action. By following the structured approach outlined in this book, your organization can transform its business model for a sustainable future, building a more equitable and resilient world for the next generation. Together, let's catalyze societal change and foster transformative leadership within the climate age.

PART IThe Imperatives of Climate

CHAPTER 1THE GREAT ACCUMULATION PROBLEM

Summary

In this chapter, we explore the profound impact of climate change, something that is no longer a distant, debatable concept but a global, scientifically irrefutable reality. Climate risks, irrespective of financial status or geographic location, affect everyone. However, vulnerable communities, assets and physical structures, often in developing nations, bear the brunt of these impacts due to factors like geographical location and socio‐economic conditions and engineering design.

The central driver of global warming is the accumulation of greenhouse gases (GHGs) in the atmosphere. Carbon dioxide (CO2) and methane (CH4) are pivotal GHGs due to their direct emissions from human activities. CO2 levels have surged since the Industrial Revolution, exceeding natural variability by far. Additionally, human activities impede natural processes that sequester CO2. Methane, though less abundant, is much more effective at trapping heat. Its levels have risen significantly, driven by both natural and human‐induced sources.

Global warming intensifies climate risks, amplifying the frequency, severity and duration of extreme events, sea‐level rise, and ecosystem disruptions. Climate risk encompasses physical and nature risks and transition responses, all of which are interconnected and demand comprehensive solutions. Population growth, coupled with rising lifestyle expectations, strains the planet's resources and contributes to GHG emissions. However, addressing these issues through sustainable practices, education and awareness is essential. Climate risk is not distributed evenly, with developing nations facing greater vulnerability.

Tackling climate risk is complex, as it transcends borders and spans long timeframes. Compounding climate risk, arising from the interaction of climate change, existing vulnerabilities and regulatory and economic factors, adds to the challenge. Urgent action is imperative, as the costs of climate‐related damage are already substantial and projected to escalate without intervention. International cooperation and private sector involvement are pivotal in addressing climate risk effectively. The chapter underscores that success in this endeavour is a collective win or loss for humanity.

Climate change is no longer only in the realm of science; it has become part of all of our vocabulary as the impacts become tangible across the globe. The increasing risks from climate change are non‐discriminatory, affecting lives and livelihoods worldwide regardless of financial wealth, social structure or hemispheric location. However, the impacts of this more volatile climate are not experienced equally and are closely linked to preparedness; the resilience to and ability to recover from climate change‐related events. Vulnerability to climate impacts depends on various factors, including geographical location, socio‐economic conditions and adaptive capacity. As such, climate change is inherently more damaging to communities in developing countries and assets that have not been engineered to withstand such fluctuations.

However, the common denominator across all climate risk and impacts is rising global temperature. Earth's average global temperature has warmed by 1.2°C since 1850 – a significant point in time due to its association with the Industrial Revolution. At the time of writing, the last decade has been the warmest ever recorded and the most costly in global economic losses. While an average rise of 1.2°C globally may sound innocuous, the resulting extremes in temperature change are felt much more severely on a regional scale with heat waves now often exceeding 40°C in continental Europe, and 50°C in parts of Africa, Asia and the Middle East. These once unusual temperature extremes have moved far beyond what many species, societies and businesses have lived through, and are now estimated to be 100 times more likely to occur as a result of climate change (Fraser‐Baxter 2023). More volatile climate events are becoming the norm; hurricanes are becoming stronger, droughts are lasting longer and wildfires are spreading faster. Rising sea levels are affecting coastal areas, posing a threat to cities and communities along coastlines.

Outside of direct weather volatility experienced by an increasing percentage of our populations, changing weather patterns make it harder for farmers to predict when to plant and harvest crops, disrupting food chain supply and causing price fluctuations. Health risks are increasing, with more people facing heat‐related illnesses, and diseases are spreading to new areas as temperatures shift entire ecosystems. Economies are being impacted, too. Industries like tourism and insurance face growing risks. Businesses are having to adapt to disruptions in their supply chains and higher costs for resources.

The increase in global average temperatures has been driven by human activity – specifically the release of greenhouse gases (GHGs) into the atmosphere. We will dive deeper into the science behind climate change in the next chapter; first let's explore the phenomenon of escalating atmospheric GHG – The Great Accumulation Problem.

GHGs are like a natural blanket in our atmosphere. They allow sunlight to enter the Earth's atmosphere, but they also trap some of the heat that tries to leave playing a crucial role in regulating the planet's temperature and making it suitable for life as we know it. However, when we burn fossil fuels such as coal, oil and gas for energy and make changes to the land such as deforestation, we release extra GHGs. This thickens the natural blanket, leading to more heat being trapped and ultimately to global warming.

The most commonly discussed GHGs are carbon dioxide (CO2) and methane (CH4). While these are not the most abundant GHGs in Earth's atmosphere, the focus remains on them due to their direct emission from human activities and their significant contributions to the enhanced greenhouse effect. This is also the reason that many measurements, models, and emissions scenarios use “pre‐industrial” CO2 concentrations as a baseline to compare current levels; as a marker for conditions before significant human contributions.

Carbon dioxide levels have increased at an unprecedented rate since the late eighteenth century. Prior to the Industrial Revolution, CO2 levels were relatively stable at around 280 parts per million (ppm). This stability had been maintained for thousands of years. However, with the advent of industrialization, there was a rapid increase in the burning of fossil fuels for energy, as well as increased deforestation. This led to the initial release of large amounts of CO2 into the atmosphere, followed by a more gradual increase during the mid‐twentieth century. Into the second half of the twentieth century, CO2