Climate Change Risk Assessment - or the CCRA for short - evaluates the risks associated with climate change. Governments and organizations may conduct CCRA to:
In compliance with the mandates outlined in the Climate Change Act of 2008, the UK government has initiated the third quinquennial evaluation of climate change risks within the country.
This assessment relies on the Independent Assessment of UK Climate Risk, which constitutes the official recommendations from the Climate Change Committee (CCC). The CCC, commissioned by both the UK government and devolved administrations, provides statutory advice for this crucial evaluation.
CCRA3 is the third review of the Climate Change Risk Assessment in the UK. It was released on the 17th January 2023, and replaced CCRA2 which was published in January 2017. The very first iteration was published in 2012.
CCRA3 found that with a 2°C temperature rise by 2050, economic damages for eight specific risks could surpass £1 billion annually each. Consequently, the overall cost of climate change to the UK is projected to reach a minimum of 1% of GDP by 2045. In an effort to limit the impact, the UK government states that it has:
The risk assessment encompasses sixty-one climate risks and opportunities across various sectors of the UK economy. It prioritizes the following eight areas for immediate action:
Depending on which sector an organization is part of, CCRA can have a huge impact on operations. For example, in the UK the flagged risks to human health might impact the day to day running of private and public health services. The risks surrounding food supply could have a very real impact on agriculture and FMCG businesses such as supermarkets.
On a more granular level, the overarching goal of limiting the average global temperature to below 1.5 degrees (in line with the Paris Agreement) means that CCRA decisions can have an impact of businesses that don’t fall into any of the target sectors called out in the most recent iteration. For example:
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