In 2015, there were about 400 disasters in a year. Current trends indicate that this number could increase by 40% to 560 per year by 2030 as reported in the Global Assessment Report 2022 released by the UN Office for Disaster Risk Reduction (UNDRR) recently.
Drought could increase from 16 cases per year to 21 an increase by 30% between 2000 and 2030. The number of extreme temperature events will nearly triple between 2001 and 2030.
These catastrophic events have a negative impact on biodiversity and environmental sustainability. Natural disasters disproportionately affect low-income countries, which lose an average of 1% of their national GDP each year due to natural disasters. According to the report, the Asia-Pacific region faces the largest economic losses due to natural disasters, with an average of 1.3% of GDP lost annually. Africa is the second most affected region.
The cost of disasters is rising both socially and economically, threatening sustainable development. Balance sheets and budgets ignore key variables, especially underestimating the risk of climate change, the cost to ecosystems, and the positive social benefits of risk reduction. The real costs of extended risk are particularly underestimated, and this gap widens as the main impacts of climate change increase, such as sea-level rise.
Following three actions are recommended in the above report:
- Measure what we value
- Design systems to factor in how human minds make decisions about risk
- Reconfigure governance and financial systems to work across silos and design in consultation with affected people
CoreCarbonX team of consultants and professionals brings in insights and strategic inputs that help businesses set themselves up for an increasingly and rapidly affected world affected by climate change.
It is critical for businesses to gain early insight and adapt accordingly. Data and information help you, but it is the insight that adds actionable value and provides inputs to your business strategy so that you can adapt successfully.
For understanding how we can help you in addressing your climate risk, please write to us at info@corecarbon.com or contact us.