It is now an accepted fact that global warming is one of the most pressing threats facing the world today. The unusual weather patterns that result not only cause natural disasters and health hazards, they also impact production, productivity and efficiency. The industries affected by weather volatility are countless, from agriculture and construction to transport, energy, travel, leisure, retail and events. The Intergovernmental Panel of Experts on Climate Change(IPCC) is well aware of the problem and of its consequences. Indeed, taking into account various demographic, technological and geopolitical hypotheses, the IPCC states in its recent report that the average increase in temperature on earth will be between 1.5° C and 4° C by 2100; a situation which is undoubtedly alarming. In a world of increasing weather extremes, the question no longer is whether climate change is actually happening, but rather how can businesses protect themselves from it. Weather derivatives were,
