Cozen O'Connor White Paper Examines Business Risks/Opportunities of Climate Change.

Forecasts New Areas of Litigation and Strategies for Companies

PHILADELPHIA -- A newly released white paper, "The Business of Global Warming: Managing the Risks and Opportunities of Climate Change," (www.cozen.com/admin/files/publications/GlobalWarming02062008.pdf) reveals that "climate change creates both conflict and opportunity. . . .[but] organizations that affirmatively evaluate, anticipate and respond to these changes will secure a substantial competitive advantage over those that do not."

Authored by Cozen O'Connor attorneys William F. Stewart (www.cozen.com/attorney_detail.asp?d=1&atid=29) and Peter J. Fontaine (www.cozen.com/attorney_detail.asp?d=1&atid=610), co-chairs of the firm's Climate Change Practice Area (www.cozen.com/practice_area_detail.asp?d=1&paid=354), the report forecasts that organizations will face professional liability, and directors and officers litigation, as well as insurance coverage, and cap and trade disputes. Companies must also prepare to deal with additional risks, from higher costs of energy derived from fossil fuels to actuarial uncertainty for insurers.

Despite these exposures, some public companies may not be assessing and disclosing risks posed by climate change.

"Companies that fail to adequately assess and disclose their climate change risks, and suffer losses tied to those risks, face the added threat of shareholder litigation," explains Fontaine, a former EPA attorney counseling energy companies.

"However, organizations can take control here, whether working to curb threats or investigating new business possibilities," stresses Stewart, who advises insurers on global warming issues.

In response to the fallout of global warming, Stewart and Fontaine offer strategies to minimize risk and optimize opportunity, including:

* assessing and disclosing emissions;

* creating a climate change statement (crafting a corporate position/related corporate governance policies, and engaging in advocacy efforts to impact policy);

* analyzing physical concerns (how does climate and weather impact business operations, including supply chain) and regulatory risks, such as the impact of cap and trade legislation on their business;

* participating in clean air markets to reduce emissions to their lowest-cost;

* evaluating renewable energy sources and new investment opportunities;

* developing new products and services to respond to emergent market needs; and

* considering how restrictions on non-renewable energy will affect business.

The white paper points to the worsening effects of climate change and concludes that global warming will be this generation's defining risk management issue - having substantial commercial, regulatory, social, economic and political implications, and leading to increased, and often overlooked, risks and opportunities for businesses.

Editor's Note: Photos available upon request.

Founded in 1970, Cozen O'Connor is ranked among the 100 largest law firms in the United States, serving business, insurance and private clients. Cozen O'Connor is a full-service firm with 500 attorneys practicing in 23 offices. The firm has 21 offices located across the United States and international offices in London and Toronto.

Through its Climate Change Practice Area, Cozen represents clients in all forms of climate change litigation -- from public nuisance suits to insurance coverage disputes to regulatory actions -- in addition to providing related educational and consulting services. The firm also assists organizations in developing climate change mitigation and adaptation strategies, dealing with international carbon markets, and preparing for domestic greenhouse gas restrictions. Additionally, the firm's Energy, Environmental & Public Utility Practice Group (www.cozen.com/practice_area_detail.asp?d=1&paid=223) represents energy companies and other regulated entities in energy and environmental matters, including rate and auction proceedings.