Abstract:

The impacts of a changing climate are upon us as storms, droughts, wildfires, heat waves and other weather phenomena become more frequent and extreme. They impact lives and livelihoods, of course, but also economies disrupting supply chains, upending communities that are home to facilities and employees, and putting critical facilities and infrastructure at risk. It’s not just the climate crisis. The accelerating loss of biodiversity, and all of the economic activity it enables, is of growing concern. So, too, is the increasing economic inequality in the world. Unconscionable numbers of people still lack adequate food, shelter, water, electricity and sanitation, while those with financial means are, as a rule, doing better and better. Companies are recognizing these risks — sometimes at the behest of investors, customers, competitors or activists — and many are doubling down on previous pledges. The rise of “net zero” commitments by companies and countries was one of the themes of 2021, along with the pushback from activists, regulators and investors that many of these claims weren’t backed by credible action or plans. It’s not necessarily that companies aren’t serious about reaching these goals, say critics. It’s that they’re not serious about the speed at which they need to reach them.