Climate Change: Key Concepts for the Corporate Sector

This chapter provides an essential understanding of climate science, focusing on greenhouse gas emissions, radiative forcing, and tipping points, to guide corporate decision-making in an era of climate change. It begins by outlining the major contributors to greenhouse gas emissions, emphasizing the disproportionate impact of the G20 countries, and explores the science of the greenhouse effect and radiative forcing as drivers of global warming. The discussion highlights the varying warming potential and longevity of key greenhouse gases, such as carbon dioxide, methane, and nitrous oxide, offering insights into their unique roles in climate dynamics. The chapter explains climate tipping points—critical thresholds where incremental changes in the climate system can lead to irreversible and catastrophic outcomes. These include the collapse of ice sheets, disruptions in ocean circulation, and ecosystem diebacks, which could trigger cascading risks across natural and economic systems. Through this foundation, the chapter prepares readers to understand and respond to climate risks, equipping them with the knowledge to navigate emerging challenges and capitalize on opportunities in a climate-resilient future.