ABSTRACT
From a climate change perspective, governance includes an overall, company-wide climate management framework, related risk and data management processes, and intellectual capital to manage climate change, as well as disclosure, engagement and leadership. The likely impacts of climate change need to be recognised and an adaptive management approach to designing and managing investment is essential. While markets provide an immediate and well-established avenue for addressing uncertainty, governments can facilitate adaptation by enhancing the flexibility of the markets, while managing barriers to efficient exchange. However, financing adaptation activities, particularly for private projects, requires an objective assessment of actual funding costs, based on the risk of the activity which is assessed by investors. Standardising the approach to climate change adaptation reporting should be informed by the business risk management procedures that are used across industries. The most effective method to implement sustainable adaptation programmes will vary by firm and industry sector.
