Jun 27, 2022
Climate change is defined as the long-term variation of temperature or climate patterns in a particular region (increase in average temperature, torrential rain, and severe droughts). While natural causes of climate change include variations in the Earth's orbit, changes in the sun and volcanic emissions, the causative agent of climate change is the concentration of carbon dioxide (CO2) emissions in the atmosphere as a result of anthropogenic actions. The increasing capacity of the atmosphere to absorb heat, known as the "greenhouse effect," causes global warming.
Effects of climate change in the UK
Climate change has become a reality in the UK, and a number of research reports predict that until we take collaborative action to prevent it, things will only get nastier. According to the UK State of the Climate report (out in July 2021), 2020 was the third hottest summer year in the UK since 1884. Moreover, all of the years in the top ten have occurred since 2002. 2020 was also the fifth wettest year on record in the UK, and six out of the top 10 wettest years have occurred since 1998. Furthermore, the UK has warmed by 0.9°C and gotten 6% wetter in the last 30 years.
The UK climate in 2050
It is predicted that if no action is taken to combat climate change, all areas of the UK will experience drastic changes in climate and weather trends. The third Climate Change Risk Assessment (CCRA3) Technical Report identifies 61 climate risks that affect multiple sectors of society. The report recognises an eclectic range of unaffordable climate change impacts, including those on health and productivity, which will affect many of our families, businesses, and public services. The report cited that, unless we take further action, annual flooding damages for non-residential properties in the UK are expected to rise by 27% by 2050 and 40% by 2080 under a 2°C by 2100 warming scenario. Considering 4°C change, this rise is expected to be 44% and 75%, respectively.
Following a series of climate change protests in the UK, the government introduced the Climate Change Act to formalise the country's approach to addressing the issue. For many years, the UK has also had the Climate Change Levy (CCL), a government-imposed tax to encourage the reduction of greenhouse gases and higher efficiency of energy used for business or non-domestic purposes.
Jun 13, 2022
Every nation in the world is experiencing an increase in the size and proportion of older people in the population as people are living longer. Population ageing began in high-income countries due to high standards of living. It is now shifting to low- and middle-income countries. The UK is no exception, as people are living longer than ever before. In 2019, one in every five people in the UK was 65 or older, accounting for ~19% of the population of 12.3mn people. Between 2009 and 2019, the population of this age group increased by 23%, compared to a 7% increase in the overall population.
According to Office for National Statistics, the number of people aged 85 and over is expected to nearly double to 3.1mn by 2045 (4.3% of the UK population), from an estimated population of 1.7mn in 2020 (2.5% of the UK population). There are expected to be many more people in their later years by 2045, owing in part to the fact that the baby boomers of the 1960s are now approaching the age of 80, as well as an overall rise in life expectancy.
All English residents have access to free public health care through the National Health Service (NHS). This includes hospitalisation, physician care, and mental health treatment. The National Health Service budget is supported by general taxation. The number of working-age people and children is projected to remain around mid-2030 levels by mid-2045. During the same time period, the number of people of pensionable age will rise to 15.2mn (28% jump compared to the 2020 level). This increase in the ageing population can put pressure on the NHS’s spending as they are likely to avail of the benefit and not contribute much through tax. However, the ageing population can continue to make an increasing contribution to society if they remain healthy, mould themselves to changing working conditions in the workplace, and access the training to adapt to evolving labour market. Nevertheless, employers must also step up and adapt to an ageing workforce.
What do you think? Are you ready to recruit ageing employees?
Apr 18, 2022
Starting April 6th, it has become mandatory by law for 1300 of the largest UK-registered companies and financial institutions to disclose climate-related financial information, making the UK the first G20 country to enact ESG disclosure laws aligned with the TCFD (Taskforce on Climate-Related Financial Disclosures). The TCFD, launched in 2015 at the Paris COP21 by the Financial Stability Board (FSB) can be used by companies, banks, and insurers to provide consistent and transparent climate-related risk disclosures to relevant stakeholders.
The law came into effect for UK’s largest traded companies, banks, insurers, and private companies with at least £500 million in turnover and over 500 employees, thereby enabling investors and businesses to align their long-term strategies with UK’s net-zero commitments. Companies will have to start collecting ESG data beginning April 6th and disclose them in annual reports.
The UK Energy and Climate Change Minister Greg Hands said that if the UK was to meet its ambitious net-zero commitments by 2050, the financial system including the largest businesses and investors will have to put climate change at the heart of their activities and decision making.
The companies will have to disclose four key areas: Governance, Plans & Strategies, Risk Management, and Metrics & Targets. Companies will also have to provide data on their Scope 1, 2, and 3 GHG emissions with targets and plans to reduce these GHG emissions.
Is your country next?
Apr 11, 2022
The latest Assessment Report (AR6) by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) makes it clear that it is “now or never” for the planet. The report warns that the global emissions are going to peak by 2025 unless there is a decline of 50% on a global scale to limit global warming to 1.5 °C by 2100. Based on the current trends, the global temperature is estimated to increase by 3 °C. To prevent climate devastation, drastic steps will have to be taken to reduce emissions. To limit global warming to 1.5 °C, GHG emissions will have to be reduced by 43% by 2030, and methane emissions will have to be reduced by 34% by 2030. To limit global warming to 2 °C, GHG emissions will have to be reduced by 27% by 2030.
On the other hand, the report also states the positive impacts of some mitigation efforts. Renewables have taken the center stage in mitigating climate change risks. Solar and wind energy usage has significantly increased globally, having a cleansing effect on climate. Few countries have achieved a steady decrease in emissions consistent with the goal to limit global warming to 2 °C. Zero emissions targets have been adopted by at least 826 cities and 103 regions around the world.
The way forward for the entire world to reduce negative climate impacts is to curb the usage of fossil fuels. Climate models have suggested that emissions from existing and planned fossil fuel projects have already exceeded tolerable carbon emissions. The efforts put in by nations to meet committed goals and targets should not be limited only to curbing emissions but should also focus on expanding green covers such as forests and improved agricultural practices. Also, under-developed nations will require financial aid to make the transition from a fossil fuel-based economy to a greener and more sustainable economy.
Mar 24, 2022
On Monday, the Securities and Exchange Commission (SEC), U.S.’s financial regulator, for the first-time proposed a climate disclosure rule that would require U.S. public companies to report on climate-related risks and impacts from their business activities in their annual reports and stock registration statements. The proposal aims to improve environmental public disclosures of corporate America, increasing transparency and holding companies accountable for their business’ climate impact. SEC chair, Gary Gensler said that the proposal was drafted in response to increasing investor demand for information on climate change factors that could affect the financial performance of the investee companies. Mr. Gensler said, “Investors with $130 trillion in assets under management have requested that companies disclose their climate risks.”
According to Morningstar, 2021 saw a record US$71 billion flow into U.S. ESG focused funds. While companies will have to disclose Scope 1 and Scope 2 greenhouse gas (GHG) emissions, it is still unclear which companies will have to disclose the more extensive and complicated Scope 3 GHG emissions. According to S&P Global, 35% of North American companies have already set GHG targets, but Scope 3 emissions are not included in these targets. Legal challenges are anticipated to the proposed rule, with concerns being raised about SEC’s authority, being a financial regulator to require disclosure of corporate emissions data. The public including companies, investors, and the legal community, will have up to 60 days to give their feedback on the plan, which is likely to be finalized later this year.
Mar 16, 2022
On Sunday, #Mumbai, India’s financial center, announced the Mumbai Climate Action Plan (MCAP) to achieve net-zero by 2050, becoming South Asia’s first city to do so. The detailed plan puts Mumbai two decades ahead of India’s national goal commitment of achieving net-zero by 2070 made at COP26 in Glasgow.
A coastal city, Mumbai is at a high risk of major flooding from rising sea levels. Mumbai’s plan is even more pressing considering that Indian cities will have to brace for a massive influx of migrants from rural areas. Rising temperatures are expected to increase crop failures and major water scarcity over the next few decades.
The plan was finalized with support from World Resources Institute, India, and C40 cities network after conducting a vulnerability assessment and a GHG & natural green inventory over the past six months.
The plan focuses on six key sectors – energy & buildings, #sustainable mobility, urban greening and #biodiversity, air quality, and urban flooding & water resource management. The largest investments will have to be made in the #energy sector which accounts for approximately 72% of the 23.42 million tons of the city’s total #GHG emissions in 2019. BMC (Brihanmumbai Municipal Corporation) commissioner, IS Chahal said that the civic body is currently working on infrastructure projects worth INR 40,000 crores to mitigate the potential effects of climate change on Mumbai and make the city more climate-resilient for its 19 million residents.
Is your city next?
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Mar 16, 2022
Climate change is defined as the long-term variation of temperature or climate patterns in a particular region (increase in average temperature, torrential rain, and severe droughts). While natural causes of climate change include variations in the Earth's orbit, changes in the sun and volcanic emissions, the causative agent of climate change is the concentration of carbon dioxide (CO2) emissions in the atmosphere as a result of anthropogenic actions. The increasing capacity of the atmosphere to absorb heat, known as the "greenhouse effect," causes global warming.
Effects of climate change in the UK
Climate change has become a reality in the UK, and a number of research reports predict that until we take collaborative action to prevent it, things will only get nastier. According to the UK State of the Climate report (out in July 2021), 2020 was the third hottest summer year in the UK since 1884. Moreover, all of the years in the top ten have occurred since 2002. 2020 was also the fifth wettest year on record in the UK, and six out of the top 10 wettest years have occurred since 1998. Furthermore, the UK has warmed by 0.9°C and gotten 6% wetter in the last 30 years.
The UK climate in 2050
It is predicted that if no action is taken to combat climate change, all areas of the UK will experience drastic changes in climate and weather trends. The third Climate Change Risk Assessment (CCRA3) Technical Report identifies 61 climate risks that affect multiple sectors of society. The report recognises an eclectic range of unaffordable climate change impacts, including those on health and productivity, which will affect many of our families, businesses, and public services. The report cited that, unless we take further action, annual flooding damages for non-residential properties in the UK are expected to rise by 27% by 2050 and 40% by 2080 under a 2°C by 2100 warming scenario. Considering 4°C change, this rise is expected to be 44% and 75%, respectively.
Following a series of climate change protests in the UK, the government introduced the Climate Change Act to formalise the country's approach to addressing the issue. For many years, the UK has also had the Climate Change Levy (CCL), a government-imposed tax to encourage the reduction of greenhouse gases and higher efficiency of energy used for business or non-domestic purposes.
