08/05/2018

Company Directors Can Be Legally Liable For Failing To Manage Climate Change Risks - Report

Australasian Lawyer

Photo © iStockphoto.com/AndreyPopov
Under Australian corporate governance laws, company directors can be held liable for failing to manage risks associated with climate change, according to a legal analysis paper by the Commonwealth Climate and Law Initiative (CCLI).
The paper warned that the effects of climate change – including extreme weather, an increase in bushfires, and changes in crop yields – can cause harm not only to ecosystems, but to economies as well.
These impacts can give rise to commercial issues, including reduced workforce productivity, business interruption, insurance restrictions, and increased risk of customer default.
While boards in practice delegate operational matters to executive management, the paper said that directors remain responsible for the oversight of corporate performance, for the monitoring and supervision of compliance, the approval of significant transactions, and external reporting.
“In the corporate context, ‘risk’ is simply ‘the effect of uncertainty on objectives’. It is clear that risk management and strategy are interrelated, and that board governance and oversight of both is critical to the creation of corporate value,” the paper said.
The Corporations Act mandates directors to act in the best interests of their firm. Hence they may fail to act in good faith if they consciously disregard, or are wilfully blind to, climate change risks, the paper said.
According to Sarah Barker, MinterEllison special counsel for climate change risk, the Coporations Act accommodates corporate governance and disclosure of climate-related financial risks, as mentioned in the federal government’s response to the recommendations of the Senate Economic References Committee Inquiry into Carbon Risk Disclosure.
Barker worked with the University of Oxford in drafting the CCLI report.
“Australian company directors need to ensure that they view climate change through a corporations and securities law lens, rather than an 'environmental' lens,” Barker said. “If this is news to any business or board, they would be well advised to accelerate their understanding of the issue before enforcement proceedings begin to flow,” she added.

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'It's All About Vested Interests': Untangling Conspiracy, Conservatism And Climate Scepticism

The Guardian

Study across 24 countries suggests the fossil fuel industry has reshaped conservative political values in the US and Australia 
A protest against the US government’s decision to exit the Paris climate deal in 2017. ‘Ignorance-building strategies’ by fossil fuel companies have bred climate change scepticism among conservative in the US and Australia. Photograph: Anthony Anex/EPA
If you reckon the 11 September terrorist attacks might have been an “inside job” or there is a nefarious new world order doing whatever it is the illuminati do, what are you likely to think about the causes of climate change?
Academics have suggested that people who tend to accept conspiracy theories also underplay or reject the science showing humans are causing rapid and dangerous climate change.
But a new study that tested this idea across 24 different countries found the link between so-called “conspiratorial ideation” and “climate scepticism” only really holds in the US.
University of Queensland psychology professor Matthew Hornsey and colleagues surveyed 5,300 people to test the link between climate “scepticism” and acceptance of four internationally propagated conspiracy theories around the assassination of President Kennedy, the 11 September terrorist attacks, the death of Princess Diana and the existence of a new world order.
Only in the US did the correlation fall outside the margin of error. This is perhaps not surprising, given the booming online conspiracy culture in the Trumpocene, with even would-be presidential science advisers hanging around with conspiracy theorists.

Conservatism and climate
The study also tried to tease out the links between the rejection of human-caused climate change and the ideologies that people hold.
It’s here that the study offers the greatest cause for hope, Hornsey says. He has developed a form of “jiujitsu” persuasion technique that he thinks might work.
There’s been a general acceptance that people who have broadly conservative or rightwing ideologies tend to rail against climate science because it rubs their worldview up the wrong way. That is, that tackling climate change will require broad interventions from governments.
But Hornsey’s study finds that “there is nothing inherent to conspiratorial ideation or conservative ideologies that predisposes people to reject climate science”.
Instead, it suggests vested interests have managed to reshape the conservative identity with “ignorance-building strategies” in two countries – the US and Australia.
Hornsey agreed to expand on the study by answering further questions by email.

You found that in the US people’s climate “scepticism” was more aligned to a conservative worldview than any other country surveyed. Why do you think the US is in this position?
I think it’s a result of two things. First, a lot of the big business interests that are threatened by climate change are situated in the US. My overall argument is that there’s nothing inherent to political conservatism that makes people want to reject climate science. Rather, the link between conservatism and climate scepticism only emerges in countries that are economically threatened by the notion of responding to climate change. When the vested interests are high (in terms of the fossil fuel industry, for example) then there is more of a motivation for big business to engage in an organised campaign of misinformation around climate change. These campaigns often develop as a collaboration between the fossil fuel industry and conservative thinktanks, media and politicians, and are designed to “coach” conservatives to believe that the climate science is not yet settled. From this perspective, conservatives don’t spontaneously feel the need to reject climate science; they only do so when they are taking their cues from conservative elites, and these cues only emerge when the economic stakes are high. Second, America has an unusually intense brand of conservatism, one that has a particularly strong opposition to government interference in the free market. Climate science is a nightmare for these people, because in some ways it does imply a big-government response designed to regulate industry.

What role do the views of high-profile politicians have in influencing voters to think about the issue in a certain way?
I think it plays a massive role. In many countries, climate scepticism is not part of the language of the conservative parties. But in Australia and America it is. So in those countries being a climate sceptic starts becoming part of the package of attitudes that you’re supposed to have if you’re a good conservative. The obvious example of this is in the US. Of the 17 candidates who campaigned to be the Republican nominee for the 2016 presidential campaign, the majority were climate change sceptics. So people’s sense of what it means to be a Republican in America has expanded to incorporate something that shouldn’t really be political, like climate science. There, people advertise their climate scepticism like they’re advertising their political gang colours. It’s not quite as bad here, but threatened to become like that during the [Tony] Abbott era.
In the US people advertise their climate scepticism like they’re advertising their political gang colours.
Professor Matthew Hornsey
Why do you think this has happened?
I think it’s all about vested interests. When the vested interests are high, the fossil fuel industry and conservative thinktanks, media and politicians collaborate in an organised campaign of misinformation. In my data, the link between conservatism and scepticism is really only obvious in countries with high per capita carbon emissions. If you think of per capita carbon emissions as a measure of how fossil fuel reliant a country is, then this makes sense. In countries with low fossil fuel reliance – where the vested interests are low – then there’s no need to kick off a campaign of misinformation, and no motivation to believe one either.

In the paper, you say “there is nothing inherent to conspiratorial ideation or conservative ideologies that predisposes people to reject climate science”. Can you clarify this? Doesn’t endorsement of small governments and low regulation actually predispose conservatives to engage in motivated reasoning to reject the science of climate change?
Yes, but most conservatives aren’t paying that much attention. I really think conservatives have to be trained and coached to pay attention, and to see the issue through the lens of their worldviews. In the 1980s you didn’t see conservatives get upset about governments shutting down CFCs to protect the ozone layer. Technically the issue was the same – government regulations curbing the freedom of industry – but because the vested interests were low there was no need for conservative elites to fight back.

What do you think it would take for the US and Australia to break the apparent link between conservative ideology and climate “scepticism”?
As the negative consequences of climate change become more severe and more immediate, I think the ideological element will fade away (although by then it’s likely to be too late, sadly). The other option is to use what I call “jiujitsu” persuasion techniques; to talk about climate mitigation in a way that aligns with people’s underlying ideologies rather than competing with them. There’s already evidence that if you frame climate change mitigation as something that’s sympathetic to free markets, or as a patriotic act designed to maintain energy security, or as a chance to generate green jobs, then conservatives are less likely to resist the science.

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New Study Finds Climate Change Threatens Marine Protected Areas

University of North Carolina
The photo shows the projected warming per year (indicated by the color-coded bar on the right) of the world's Marine Protected Areas (indicated by the black dots). Credit: Bruno et al

New research from the University of North Carolina at Chapel Hill and collaborators found that most marine life in Marine Protected Areas will not be able to tolerate warming ocean temperatures caused by greenhouse gas emissions. Marine Protected Areas have been established as a haven to protect threatened marine life, like polar bears, penguins and coral reefs, from the effects of fishing and other activities like mineral and oil extraction. The study found that with continued "business-as-usual" emissions, the protections currently in place won't matter, because by 2100, warming and reduced oxygen concentration will make Marine Protected Areas uninhabitable by most species currently residing in those areas.
The study, which will be published on May 7 in Nature Climate Change, predicts that under the Intergovernmental Panel on Climate Change's Representative Concentration Pathway 8.5 emissions scenario, better known as the "business as usual scenario," Marine Protected Areas will warm by 2.8 degrees Celsius (or 5 degrees Fahrenheit) by 2100.
The study concludes that such rapid and extreme warming would devastate the species and ecosystems currently located in Marine Protected Areas. This could lead to extinctions of some of the world's most unique animals, loss of biodiversity, and changes in ocean food-webs. It could also have considerable negative impacts on the productivity of fisheries and on tourism revenue. Many of these marine species exist as small populations with low genetic diversity that are vulnerable to environmental change and unlikely to adapt to ocean warming.
The study also estimated the year in which Marine Protected Areas in different ecoregions would cross critical thresholds beyond which most species wouldn't be able to tolerate the change. For many areas in the tropics, this will happen as soon as the mid-21st century.
"With warming of this magnitude, we expect to lose many, if not most, animal species from Marine Protected Areas by the turn of the century," said John Bruno, lead author, marine ecologist, and biology professor in the College of Arts and Sciences at UNC-Chapel Hill. "To avoid the worst outcomes, we need to immediately adopt an emission reduction scenario in which emissions peak within the next two decades and then decrease very significantly, replacing fossil fuels with cleaner energy sources like solar and wind."
Key takeaways include:
  • There are 8,236 Marine Protected Areas around the world, although they only cover about 4 percent of the surface of the ocean.
  • The projected warming of 2.8 degrees Celsius (or 5 degrees Fahrenheit) by 2100 would fundamentally disrupt the ecosystems currently located in Marine Protected Areas.
  • Mean sea-surface temperatures within Marine Protected Areas are projected to increase 0.034 degrees Celsius (or 0.061 degrees Fahrenheit) per year.
  • Marine Protected Areas in the Arctic and Antarctic are projected to warm especially quickly, threatening numerous marine mammals like and penguins.
  • The Marine Protected Areas at the greatest risk include those in the Arctic and Antarctic, in the northwest Atlantic, and the newly designated no-take reserves off the northern Galápagos islands Darwin and Wolf.
"There has been a lot of talk about establishing marine reserves to buy time while we figure out how to confront ," said Rich Aronson, ocean scientist at Florida Institute of Technology and a researcher on the study. "We're out of time, and the fact is we already know what to do: We have to control ."

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