The European Innovation Council (EIC), within the Greenhouse Gas Programme (GHG) initiative, carries on its mission of providing another round of dedicated news that brings you the latest pieces of information related to climate matters.
In this edition, we’re addressing the news that covers matters related to climate change, and the latest actions to keep tackling it. We invite you to keep reading to know more about what we’ve put together this time.
It’s time to give companies standalone climate ratings
With Environmental, Social, and Governance (ESG) ratings catching the market’s attention, the fact that these ratings are somewhat imperfect in conveying investor-relevant information when it comes to climate change didn’t go unnoticed. The need to assign companies a stand-alone rating focused on climate risk is arising. This will help distil complex information regarding a company’s carbon footprint and climate risk into a more intuitive, user-friendly format while avoiding the flaws that currently mar ESG ratings.
Resulting from a series of survey experiments with over 1500 participants, empirical evidence was reported recently that showcased that the inclusion of climate ratings among the performance metrics considered by investors significantly increased investment in the stock of companies with favourable climate ratings when compared to competitors. Moreover, the inclusion of a generically labelled climate rating boosted investment in the more climate-friendly stock by over 20% compared with the control scenario and this climate rating effect was even stronger for ratings related to a company’s vulnerability to climate change, channelling over 50% of additional investment toward the most climate-resilient stock. These results not only confirm the impact of climate ratings on investor decision-making but also highlight the importance of communicating climate risk in a format that speaks to investors.
How climate change drives heatwaves and wildfires in Europe
Europe is facing record-breaking heatwaves and wildfires are raging across the Mediterranean. With climate change, this is a reality becoming increasingly more frequent, as confirmed by the U.N.'s global panel of climate scientists (IPCC). Greenhouse gas emissions from human activities have heated the planet since pre-industrial times, which means that a warmer baseline could generate higher temperatures that can be reached during extreme heat events – which is now the case.
To unfold how climate change can affect a specific heatwave, scientists conducted "attribution studies". Since 2004, more than 400 such studies have been done on extreme weather events, including heat, floods, and drought - calculating how much of a role climate change played in each. That included simulations of modern climate and comparisons of simulations of a climate without human-caused greenhouse gas emissions.
Higher risk of temperature-related death if global warming exceeds 2°C
On that same note, the recent report ‘Non-linear response of temperature-related mortality risk to global warming in England and Wales’ from researchers of the University College London (UCL) and the University of Reading, published in Environmental Research Letters, directly links the increasing death rate around the world to extreme temperatures.
In the scientific paper, the researchers examined the impact of climate change on temperature-related mortality rates – where a death is related to climate temperature – in England and Wales. They focused on the risk of the heat in summer and cold in winter. They found that as the global mean temperature increases, temperature-related mortality in summer will increase at a much faster, non-linear rate.
Nine innovative ways European cities are taking climate action
Lastly, CDP – a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts – has collected case studies about the innovative ways of nine European cities that are at the forefront of climate change.
Great examples of such efforts are cities like Amsterdam, Braga, Florence, Helsingør, Lahti, Lisbon, Lund, Milan, and Örebro. From building a resilient network of smart climate-adaptive rooftops to help adapt to the impacts of climate change, creating a smart waste collection system to keep the streets clean and free from pollution, renovating buildings and making the switch to renewable energy, to aiming to plant three million trees by 2030, the number of cities that are investing in innovative and sustainable ways to help the environment and tackling climate change is notorious.
As an EIC-funded SME, you can join the initiatives of the EIC GHG programme, be it the co-creation activities, the badges & CO2 neutral label, the resource library or by using the EIC GHG Tool. Being a journey towards carbon neutrality, with a set of unique steps that you can benefit from, this programme will aid you in making your green contribution towards a cleaner and safer planet.
About the EIC Business Acceleration Services
This opportunity is brought to you by the EIC Business Acceleration Services. To explore other opportunities to connect with the largest corporates in Europe, keep an eye on our events page.
About the EIC GHG programme
With the EIC GHG programme, part of the Business Acceleration Services, the EIC offers its beneficiaries a dedicated GHG tool, the GHG Badges & CO2 Neutral Label initiative, and further resources.
In addition, co-creation activities with corporates, industrial associations, regions in carbon transition and other EIC beneficiaries are planned. More information on the EIC GHG programme can be found here.
