For press information: CDP: Catherine von Altheer // communications manager // + 44 (0) 20 7970 5682 // +44 7794 003 903 AECOM: Erik Miller // manager, corporate communications // +1 415 955 2804 C40: Mike Marinello // global communications director // + 1 212 617 2383
ECONOMIC RAMIFICATIONS OF CLIMATE CHANGE MOVE CITIES TO PROTECT BUSINESSES, FINDS CDP REPORT 10 July 2014: The majority of the world’s major cities have disclosed that climate change presents a physical risk to the businesses operating in their cities. This real and current threat is driving local governments to take concrete action in response, so finds Protecting our Capital, a new report from CDP, formerly Carbon Disclosure Project, AECOM and C40 Cities Climate Leadership Group (C40). Cities generate more than 80% of global GDP, are home to more than half the global population and consume two thirds of the world’s energy1. They are also on the frontline of climate change2. Accordingly, 207 cities including Johannesburg, London, New York, São Paulo, Sydney and Tokyo, have disclosed their climate change strategies and actions through CDP. This is nearly double the 110 cities that disclosed last year, demonstrating the increasing importance that city administrations place on their environmental accountability and performance monitoring. Three quarters of these cities disclose that extreme weather and other effects of climate change threaten the stability of their local economies, with damage to property and capital assets, transport and infrastructure destruction, and citizen wellbeing among the most commonly reported risks. However, more than three quarters of cities see financial benefits from taking action on climate change. Portland, for example, reports that its City Energy Challenge program achieves annual savings of US$5.5 million, resulting in cumulative savings of US$42 million since the program’s inception in 1991. The report includes analysis by AECOM and is presented together with CDP’s long-standing strategic partner C40. It examines the data from 50 cities where 78 companies have reported that they expect climate change to have a physical effect. Cited impacts include drought, intense rainfall, storms, floods, heat waves and sea level rise. It establishes that both cities and companies are aware of the substantial financial values associated with climate change impacts and that city action on climate change helps reduce those risks for businesses. The City of Cleveland reveals that increasing cases of severe weather and diminishing water at Lake Erie put its US$6.5 billion shipping industry at risk. Pittsburgh reports that some business owners are abandoning their investments because they are unable to seek compensation for losses incurred as a result of climate change. Indeed, the insurance industry recently filed lawsuits against city municipalities for failing to adapt to the consequences of climate change3. As Caracas, Venezuela, reports: “Drinking water and electricity generation could be interrupted because of climate change. These factors could affect the private sector. Floods can interrupt operations and insurance companies may face higher claims.”
1 2 3
World Bank (2014). Intergovernmental Panel on Climate Change Fifth Assessment WGII Report (2014). NBC: prepare for climate change or get sued (2014).
Cities are largely aligned with companies on risk identification. They recognize 69% of the physical climate change risks that businesses identify in those cities and are moving to address 66% of the company-identified risks. In Hong Kong, energy provider CLP Holdings has suffered site damage and business interruption as a result of rising sea level. It has spent US$193,000 raising building floor levels and has invested a further US$516,000 to increase drainage capacity. The Hong Kong Drainage Services Department, meanwhile, has put US$2.7 billion toward flood defence infrastructure, including river widening and underground water storage. To combat rising temperatures in London, financial advisor Morgan Stanley has spent US$4.4 million upgrading air-conditioning at its data center. London is using its planning system to drive greater energy and cooling efficiency – ensuring property managers and developers contribute to a more climate resilient city. This alignment on risk identification is leading cities not only to invest in climate resilience but also to introduce policy designed to guide and enable the businesses to adapt. Larissa Bulla, head of CDP’s cities program says: “Local governments are storming ahead to protect their citizens and businesses from the impacts of climate change, but further collaboration with business is needed to increase city resilience. Through the provision of information, policies and incentives, cities can help equip businesses to manage these risks and embrace the opportunities.” Gary Lawrence, chief sustainability officer for AECOM, a premier, fully integrated infrastructure and support services firm, says: “Three quarters of the cities that have taken part in CDP’s cities program this year identified substantial benefits that flow to both public and private economies from climate adaptation initiatives. These benefits can be amplified through closer collaborations and sharing of knowledge and technical resources.” Nearly every city in the C40 network of global cities taking action on climate change has this year disclosed to CDP, the official exclusive reporting partner of the C40. Kerem Yilmaz, C40 head of research says: “The need to understand and act upon climate risk is a growing priority. That’s why these cities are taking steps right now to help create more climate-resilient communities, economies and infrastructure. Their commitment to measuring and reporting on this critical issue is accelerating action by enabling cities to identify common challenges and work together to spur and implement solutions.” Individual responses from the cities are now available on the CDP website, where the report can be freely downloaded. Released alongside the new report today is an infographic which displays data from all 207 reporting cities, including their greenhouse gas emissions, risks, adaptation actions, and emissions reduction activities. See the full infographic on the cities pages of CDP’s website. Ends
Editor’s notes Disclosing cities Most cities have made their completed climate change questionnaires available to the public. The responses from those cities are now available on the CDP website. 207 cities took part in CDP’s cities program this year, representing a near 100% increase on the 110 cities in 2013. Participating cities are listed below.
AFRICA Addis Ababa City Administration City of Abidjan
Ethiopia
Gemeente Rotterdam Glasgow City Council
Cote d’Ivoire
Greater London Authority
City of Cape Town
South Africa
City of Dar es Salaam City of Durban
United Republic of Tanzania South Africa
City of Johannesburg
South Africa
City of Lagos
Nigeria
City of Nairobi
Kenya
City of Pietermaritzburg
South Africa
Pretoria - Tshwane
South Africa
EUROPE Ajuntament de Barcelona
Spain
Ayuntamiento de Madrid
Spain
Barreiro
Portugal
Basel-Stadt
Switzerland
Bornova Municipality
Turkey
Cascais
Portugal
City of Amsterdam
Netherlands
City of Athens City of Berlin
Moscow Government
Netherlands United Kingdom United Kingdom United Kingdom Russia
Roma Capitale
Italy
Santarém
Portugal
Seixal
Portugal
Stadt Zürich
Switzerland
Vila Nova De Gaia
Portugal
Village of Kadiovacik
Turkey
Ville de Monaco
Monaco
Vilnius City Municipality
Lithuania
Greater Manchester
LATIN AMERICA Colombia
Greece
Alcadia Distrital de Barranquilla Alcaldía Metropolitana de Caracas Ayuntamiento de San Luis Potosí Bogotá Distrito Capital
Germany
City of Brasília
Brazil
City of Copenhagen
Denmark
City of Buenos Aires
Argentina
City of Lisbon
Portugal
City of Goiânia
Brazil
City of Oslo
Norway
City of Salvador
Brazil
City of Paris
France
Ciudad de Juárez
Mexico
City of Porto
Portugal
Ciudad de Mendoza
Argentina
City of Stockholm
Sweden
Guatemala City
Guatemala
City of Turku
Finland
Heroic Puebla of Zaragoza
Mexico
City of Warsaw
Poland
Intendencia de Montevideo
Uruguay
City of Zaragoza
Spain
Peru
Ciy of Gibraltar
Gibraltar
Comune di Bologna
Italy
Metropolitan Municipality of Lima Mexico City
Comune di Bolzano
Italy
Municipalidad de La Paz
Bolivia
Comune di Ferrara
Italy
Peru
Comune di Genova
Italy
Municipalidad de Provincial de Arequipa Municipality of Belém
Comune di Milano
Italy
Municipality of Belo Horizonte Brazil
Comune di Napoli
Italy
Municipality of Campinas
Brazil
Comune di Oristano
Italy
Municipality of Curitiba
Brazil
Comune di Padova
Italy
Municipality of Fortaleza
Brazil
Comune di Piacenza
Italy
Municipality of Porto Alegre
Brazil
Comune di Ravenna
Italy
Municipality of Recife
Brazil
Comune di Torino
Italy
Município de Aparecida
Brazil
Comune di Venezia
Italy
Prefeitura de Aracaju
Brazil
Dublin City Council
Ireland
Prefeitura de Cuiabá
Brazil
Évora
Portugal
Prefeitura de Florianópolis
Brazil
Fafe
Portugal
Prefeitura de Guarulhos
Brazil
Faro
Portugal
Prefeitura de Maceió
Brazil
Free and Hanseatic City of Hamburg
Germany
Prefeitura de Manaus
Brazil
Venezuela Mexico Colombia
Mexico
Brazil
Prefeitura de Natal
Brazil
Nonsan City
South Korea
Prefeitura de Rio Branco
Brazil
Pyeongtaek City
South Korea
Prefeitura de São Bernardo do Campo Prefeitura de São Luís
Brazil
Samcheok City
South Korea
Seocheon County
South Korea
Prefeitura de São Paulo
Brazil
Seogwipo City
Korea
Prefeitura de Sorocaba
Brazil
South Korea
Prefeitura de Vitória
Brazil
Prefeitura do Rio de Janeiro
Brazil
Prefeitura Municipal de Caieiras Prefeitura Municipal de Jaguaré Prefeitura Municipal de João Pessoa Prefeitura Municipal de Macapá San Salvador
Brazil
Seoul Metropolitan Government Shinan Metropolitan Government Suwon City Taipei City Government
Taiwan
Tokyo Metropolitan Government Tongyeong City
Japan
Wonju City
South Korea
Yoenggwang County
South Korea
Santiago de Cali
Colombia
NORTH AMERICA
Santiago de Guayaquil
Ecuador
City of Atlanta
USA
City of Austin
USA
City of Baltimore
USA
South Korea
City of Benicia
USA
Changwon City
South Korea
City of Boston
USA
Cheongsong County
South Korea
City of Brandon
Canada
Chuncheon City
Korea
City of Burlington
USA
City of Hiroshima
Japan
City of Calgary
Canada
City of Nagoya
Japan
City of Chicago
USA
City of Shenzhen
China
City of Cleveland
USA
City of Yokohama
Japan
City of Columbus
USA
Gapyeong County
South Korea
City of Dallas
USA
Geoje City
South Korea
City of Denver
USA
Geumsan County
South Korea
City of Detroit
USA
Gokseong County
South Korea
City of Edina
USA
Government of Hong Kong Special Administrative Region Gurye Metropolitan Government Gwangju Metropolitan Government Gwangyang Metropolitan Government Haenam County
Hong Kong
City of Edmonton
Canada
City of Fort Wayne
USA
City of Fort Worth
USA
City of Hamilton
Canada
South Korea
City of Houston
USA
South Korea
City of Las Vegas
USA
City of Lexington
USA
South Korea
City of London
Canada
Hoengseong County
South Korea
City of Long Beach
USA
Hongcheon County
South Korea
City of Los Angeles
USA
Hwacheon County
South Korea
City of Miami
USA
Imsil County
Korea
City of Minneapolis
USA
Incheon Metropolitan Government Jangheung County
South Korea
City of New Orleans
USA
South Korea
City of Philadelphia
USA
Jangseong County
South Korea
City of Phoenix
USA
Jecheon City
South Korea
City of Pittsburgh
USA
Jeju City
South Korea
City of Portland, Oregon
USA
Jeongseon County
South Korea
City of Richmond
USA
Kaohsiung City Government
Taiwan
City of San Antonio
USA
Miryang City
South Korea
City of San Diego
USA
Mokpo City
South Korea
City of San Francisco
USA
Brazil
Brazil Brazil Brazil
South Korea
South Korea
El Salvador
EAST ASIA Ansan City
South Korea
South Korea
City of San José
USA
City of Saskatoon
Canada
City of Seattle
USA
City of St Louis
USA
City of Toronto
Canada
City of Vancouver
Canada
City of Victoria
Canada
City of Winnipeg
Canada
District of Columbia
USA
New York City Park City, UT Ville de Montreal
SOUTH ASIA AND OCEANIA Bangkok Metropolitan Administration City District Government Karachi City of Melbourne
Thailand
City of Sydney
Australia
Pakistan Australia
Dhaka North City Corporation Bangladesh Bangladesh
USA
Dhaka South City Corporation Hanoi City
USA
Ho Chi Minh City
Vietnam
Canada
Jakarta City Government
Indonesia
Singapore Government
Singapore
Wellington City Council
New Zealand
Vietnam
About CDP CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. CDP works with market forces, including 767 institutional investors with assets of US$92 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them. CDP now holds the largest collection globally of primary climate change, water and forest risk commodities information and puts these insights at the heart of strategic business, investment and policy decisions. C40 and Bloomberg Philanthropies are strategic partners of CDP’s cities program. Please visit www.cdp.net or follow us @CDP to find out more. About AECOM Ranked as the #1 engineering design firm by revenue in Engineering News-Record magazine’s annual industry rankings, AECOM is a premier, fully integrated infrastructure and support services firm, with a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees — including architects, engineers, designers, planners, scientists and management and construction services professionals — serving clients in more than 150 countries around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural and social environments. A Fortune 500 company, AECOM had revenue of $8.0 billion during the 12 months ended March 31, 2014. More information on AECOM and its services can be found at www.aecom.com. About C40 Cities Climate Leadership Group (C40) The C40 Cities Climate Leadership Group (C40) is a network of large and engaged cities from around the world committed to implementing meaningful and sustainable climate-related actions locally that will help address climate change globally. C40 was established in 2005 and expanded via a partnership in 2006 with President William J. Clinton’s Climate Initiative (CCI). The current chair of the C40 is Rio de th Janeiro Mayor Eduardo Paes; the 108 Mayor of New York City Michael R. Bloomberg serves as President of the Board. To learn more about the work of C40 and our cities, please visit www.c40.org, follow us on Twitter @c40cities and like us on Facebook at C40Cities. For media information: CDP
AECOM
C40
Catherine von Altheer Communications manager + 44 (0) 20 7970 5682 + 44 (0) 7794 003 903
[email protected] Erik Miller Manager, corporate communications +1.415.955.2804
[email protected] Mike Marinello Global communications director + 1 212 617 2383
[email protected]