Media Release, Canberra July 4th, 2008

Garnaut: Rules have Changed for Company Directors: Adapt to Climate Change or be Thrown to Market Lions. Climate Risk director Dr Karl Mallon is alerting private sector clients that the Garnuat Review places two major new expectations on the company directors that they will have to address. “This is a wake-up call that the rules have changed for the private sector, said Dr Mallon.

“Regardless of what the government do, Garnaut is saying climate change will cause immense disruption that will require adaptation, and further that companies that do not plan to do well under carbon trading will be thrown to the market lions.”

On Climate Change Impacts, “immense damage, is likely to be part of the Australian reality of the 21st century and beyond” (p.12) Directors and businesses are being advised by Climate Risk to take notice that the draft Garnaut Review is a wakeup call to investors, lenders and insurers.

As shown by Garnaut “a single category 3 cyclone hitting the Gold Coast today could cause up to $7.5 billion in damage to houses alone. Allowing for commercial and other property damage as well as business disruption costs, this figure could climb as high as $25 billion” (pp.256-7). “Its too late to avoid major damage so companies must expect to face business disruption from climate change such as extreme weather and drought which are unavoidable in the medium term and which may lead to ,immense damage in the longer term.”

“This will affect investments across the country so investors, super funds and insurers will need to keep a keen eye on which companies are taking preparatory measures to deal with the effects of climate change.”

On Emissions Trading. “In terms of emissions, Garnaut is recommending that companies will be left to the view of the market to decide “which companies will have the management structures to do well” said Dr Mallon, “This clearly suggests that companies that have not fundamentally addressed their strategies for a carbon constrain world should expect little support from Government.”

On Petrol Prices. According to Dr Mallon ” It appears that the approach being taken by Garnaut is that spending funds raised by an Emissions Trading System on efficiency and new technology will mean that though prices of petrol or electricity may go up, consumption levels would go down leading towards a net neutral position for home owners, drivers and businesses.”

Interviews can be pre-arranged by contacting Dr Mallon in Canberra on 0412 25 75 21 Or to arrange an interview send an email to donovan@climaterisk.com.au Both the Sydney and Brisbane office will also be available for print media interviews and commentary. Brisbane office number is 07 3368 2902. Donovan Burton: 0435 041 385.

Note to Editor Dr Karl Mallon, Director of Climate Risk Pty Ltd, Australia’s leading specialist firm on climate change risk management. Dr Karl Mallon is an author and international expert on the impacts of climate change on the private sector. Climate Risk is recognised as a leading independent research organisation and provides analysis to blue chip corporations such as Telstra and Zurich Insurance, State and Local Governments and environmental non-government organisations.

Climate Risk Pty Ltd has just been appointed to the Federal Government’s Climate Change Risk Management panel of Service Providers. The Climate Risk team will also be executing a run of the Industrial Allocation Model which will provide graphical images of industry contributions to emission reduction targets. These images should be ready mid-afternoon. To request a copy please send an email to the address below. To download supporting documents go to www.crgarnaut.com