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Key drivers of the new, heightened risk environment
POLITICAL
For businesses, the pressures shaping climate change-related risk are bearing down from many angles. Satisfying the expectations of various stakeholder groups, from customers to shareholders to policy-makers to the general public and the international community is a complex and sometimes contradictory task. The key drivers are:
Under scrutiny, governments around the world are taking robust measures to curb greenhouse gas emissions, from implementing carbon trading schemes and tax breaks designed to encourage investment in renewable energy to shifting towards electric vehicles. Global efforts culminated in the 2015 Paris Agreement, when nations worldwide came together to agree ambitious measures to limit global warming. However, with the US now withdrawn from the Paris deal, there has been a rift in the political consensus, which is spurring some climate change activists to seek other routes to further their cause – an issue dealt with in more depth later in this report. Additionally, the UN 2018 International Panel on Climate Change (IPCC) special report adds pressure on governments to curb global warming even faster and further than the upper limit (2˚C) set out in the Paris agreement - to just 1.5˚C 10 . increasing public
10 UN International Panel on Climate Change (IPCC) Special Report https://ipcc.ch/pdf/session48/pr_181008_P48_spm_en.pdf
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