IPCC_AR5__Implications_for_Investors__Briefing__WEB_EN

GlossaryADAPTATIONThe process of adjustment to actualor expected climate and its effects.In human systems, adaptation seeksto moderate or avoid harm or exploitbeneficial opportunities. In naturalsystems, human intervention mayfacilitate adjustment to expectedclimate and its effects.CLIMATE CHANGEAny significant change in climatethat persists for an extended period,typically decades or longer.CLIMATE IMPACTThe effects of climate change onnatural and human systems.DOWNSIDE RISKThe amount of financial loss that couldbe sustained by an investor as a resultof the decline in the value of an asset orinvestment.ENERGY SECURITYThe goal of a given country, or theglobal community as a whole, tomaintain an adequate, stable, andpredictable energy supply.FOSSIL FUELCarbon-based fuel from fossilhydrocarbon deposits, including coal,peat, oil, and natural gas.GREENHOUSE GAS (GHG)A gas in the atmosphere, of naturaland human origin, that absorbs andemits thermal infrared radiation.Water vapour, carbon dioxide, nitrousoxide, methane and ozone are themain greenhouse gases in the Earth’satmosphere. Their net impact is to trapheat within the climate system.MITIGATIONA human intervention to reduce thesources or enhance the sinks ofgreenhouse gases.PRE-INDUSTRIAL PERIODThe period before 1750, that is, beforethe period of rapid industrial growthreferred to as the ‘industrial revolution’.PROJECTIONA potential future evolution of a quantityor set of quantities, often computed by amodel. Projections involve assumptionsthat may or may not be realized, andare therefore subject to substantialuncertainty; they are not predictions.RENEWABLE ENERGYAny form of energy from solar,geophysical or biological sources thatis replenished by natural processesat a rate that equals or exceeds itsrate of use.RESILIENCEThe capacity of social, economic,and environmental systems to copewith a hazardous event or trend ordisturbance, responding or reorganizingin ways that maintain their essentialfunction, identity, and structure.STRANDED ASSETAn asset that has become obsolete, ornon-performant, but must be recordedon the balance sheet as a loss of profit.TIPPING POINTA hypothesised critical threshold whenglobal or regional climate changesfrom one stable state to anotherstable state. The tipping point eventmay be irreversible.P14 Climate: Everyone's Business