The financial crises of the last decade have demonstrated serious shortcomings in the understanding of corporate business models, the alignment of incentives, and the management of risk. The current corporate reporting model has not highlighted where these shortcomings exist. This failing is exacerbated by the pace of change of business today, with a plethora of new challenges impacting long-term success, including a shift in the global balance of power, resource constraints and climate change.

Bonds are a set of financial products ideally suited to both the financing of long-payback period energy projects and to providing institutional investors with security of returns over the longer term. Climate Bonds are intended to unlock ‘patient capital’: taking savings which require secure returns over long periods of time, such as those held by pension funds, and investing them in low-carbon projects that have high up-front costs but good payback rates over the long term. Climate Bonds need not differ greatly from existing government and corporate bonds, save for their central purpose: the funds they attract are underpinned by real and verifiable energy efficiency and renewable energy projects that in some certifiable manner contribute to the mitigation of climate change. At a minimum this has marketing benefits, allowing investors to report to their members on how their secure investments are also making a contribution to addressing climate change. At a maximum, investors...

In 2007, the CNA Military Advisory Board (MAB) released the landmark report “National Security and the Threat of  Climate Change,” which found that climate change constitutes a “threat multiplier” to existing security risks in some of the most volatile regions in the world. A 2008 National Intelligence Assessment con?rmed the report ?nding that climate change is a serious threat to national security and long-term global stability. The MAB, which is comprised of some of the nation’s most respected retired admirals and generals, also found that “Climate change, national security, and energy dependence are a related set of global challenges.” The following is a report produced by CNA expanding on previous findings.

Hunter Lovins shares with Tomorrow's Company her presentation shown at the Ecotopia event we co-hosted with Fairknowledge last week.

'We, Heads of State, Ministers and representatives of Government from Africa, Asia, Caribbean and the Pacific, representing some of the countries most vulnerable to the adverse impacts of climate change':