Bodies such as the Transition Plan Taskforce (TPT) and the Network for Greening the Financial System have increasingly emphasised the benefits of integrating adaptation and nature within developing transition plans. Building upon the guidance released by the TPT this year, in collaboration with the Climate Financial Risk Forum’s Adaptation Working Group, we developed the first detailed framework for adaptation planning for corporates and financial institutions. We also conducted the first analysis of progress of 100 corporates against this framework, focusing on the Nature Action 100 companies.
Download our preliminary analysis here [Available soon].
This is an area that we will continue to advance in collaboration with Climate Arc and other partners.
For further information, please contact Dr Nicola Ranger and Roberto Spacey Martín.
Research Papers
Harnessing AI to Assess Corporate Adaptation Plans on Alignment With Climate Adaptation and Resilience Goals
The extent to which firms are adapting to climate change and building resilience to climate and nature-related risks is vital information for financial institutions, regulators and governments. Yet currently no framework or tool exists to assess corporate adaptation and resilience alignment and there is little guidance available for firms to improve disclosure. We propose a new Adaptation Alignment Assessment Framework (A3F) to analyse corporate adaptation and resilience progress. We combine the framework with a natural language processing model and provide an example application to the Nature Action 100 companies. The pilot application demonstrates that corporate reporting on climate adaptation and resilience needs to be improved and implies that progress on adaptation alignment is limited. Further, we find that firms are already reporting on environmental impact but integration of nature-related risks and dependencies is low, suggesting further engagement is needed with the Taskforce for Nature-Related Disclosures. In general, the paper demonstrates the feasibility and practicality of assessing large swathes of corporate reporting through AI to gain insights on company resilience alignment.