The Pew Center on Global Climate Change has just released a new report “Adapting to Climate Change: A Business Approach”.The report was authored by Frances J. Sussman, Senior Economist with ICF International, and J. Randall Freed, Senior Vice President of ICF International.

The report highlights that although many businesses are taking some climate change impacts into account – such as potential federal and state regulations, shareholder perceptions, and changes in consumer and producer markets – many are not incorporating the physical effects of climate change into their business planning.

This report outlines a business approach to analyzing and adapting to the physical risk of climate change.It focuses on a critical first step in assessing these climate impacts: understanding the potential risks to business and the importance of taking action to mitigate those risks. It recognizes that not all businesses need to take action now and therefore develops a qualitative screening process to assess whether a business is likely to be vulnerable to the physical risks associated with climate change, and whether a more detailed risk assessment is warranted.

The report goes on to highlight three business case studies of companies that have begun to look at adaptation to climate change.These case studies highlight the very different circumstances that motivated each company, and how the companies may be moving towards different conclusions about the appropriate response to changing climate.The companies highlighted are: Entergy Corporation, The Travelers Companies, and Rio Tinto.