Climate Change Risks

🌍 𝗖𝗘𝗢𝘀 𝗰𝗮𝗻 𝗻𝗼 𝗹𝗼𝗻𝗴𝗲𝗿 𝗮𝗳𝗳𝗼𝗿𝗱 𝘁𝗼 𝗶𝗴𝗻𝗼𝗿𝗲 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗰𝗵𝗮𝗻𝗴𝗲. The risks of a warming world and the transition to a low-carbon economy are no longer future threats—they’re here today. The question is, will your company adapt and thrive or fall behind? A great new report from the World Economic Forum and the Boston Consulting Group (BCG) explores the costs of climate change and the imperatives for leaders to succeed in a changing world. 📉 The cost of inaction is staggering: Businesses unprepared for climate impacts could lose up to 25% of EBITDA by 2050 due to physical risks. 💰 The opportunity is equally compelling: Companies that invest in adaptation and resilience now could see a return of up to $19 for every dollar spent (CDP data). 🔑 Four critical steps for climate risk readiness: 1️⃣ 𝗔𝘀𝘀𝗲𝘀𝘀 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸𝘀 𝗮𝗰𝗿𝗼𝘀𝘀 𝘆𝗼𝘂𝗿 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝘃𝗮𝗹𝘂𝗲 𝗰𝗵𝗮𝗶𝗻. 2️⃣ 𝗜𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 𝗮𝗻𝗱 𝗱𝗲𝗰𝗮𝗿𝗯𝗼𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗳𝘂𝘁𝘂𝗿𝗲-𝗽𝗿𝗼𝗼𝗳 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀. 3️⃣ 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝗴𝗿𝗲𝗲𝗻 𝗴𝗿𝗼𝘄𝘁𝗵 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗯𝘆 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗻𝗴 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗻𝗱 𝗺𝗼𝗱𝗲𝗹𝘀. 4️⃣ 𝗖𝗼𝗺𝗺𝗶𝘁 𝘁𝗼 𝘁𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝘄𝗶𝘁𝗵 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝘁𝗼 𝘁𝗿𝗮𝗰𝗸 𝗽𝗿𝗼𝗴𝗿𝗲𝘀𝘀 𝗮𝗻𝗱 𝗯𝘂𝗶𝗹𝗱 𝘁𝗿𝘂𝘀𝘁. For leaders who understand the stakes—and the opportunities—this is your chance to lead the way and ensure your business is on the right side of history. 💡 What steps is your company taking to manage climate risks and embrace green growth? I’d love to hear your insights. 📖 Explore the full report here: https://lnkd.in/de3Nn3n5 #climate #climaterisk #physicalrisk #ceo #sustainability

Climate Risks Are Financial Risks An alarming USD 1.14 trillion in corporate value, linked to the world's largest stock markets is exposed to severe socio-economic impacts from #climatechange by 2050. Data from the Climate Hazard and Vulnerability Index (CHVI) highlights a critical blind spot for many businesses: 📌 48 countries will be highly vulnerable to socio-economic climate impacts by mid-century, double today’s figure. 📌 Major emerging markets are expected to face significant climate-related disruptions. 📌 India alone accounts for over USD 1 trillion of the at-risk corporate assets, dramatically impacting global markets and supply chains. 🚨Companies must place dedicated climate leadership at the highest level to proactively identify risks, anticipate market disruptions, and strategically invest in long-term resilience. 🚨 Businesses should move beyond physical hazards to systematically report and manage socio-economic climate vulnerabilities. Transparent, detailed disclosures help stakeholders understand risks and encourage informed investments. 🚨 Corporates must prioritize investment in resilient infrastructure, diversified supply chains, and sustainable practices, particularly in vulnerable regions. This strategic foresight protects operational continuity and market valuation. The globalized nature of corporate operations means that climate vulnerability anywhere becomes a financial risk everywhere. 🌱 Is your company equipped with climate leadership at board level? Read more here 👇 https://lnkd.in/eFnsnjyY #ClimateRisk #ClimateLeadership #SustainableGovernance #ESG #BoardGovernance #InvestmentStrategy #Resilience #ClimateAction

🔥 Climate risks are no longer abstract—they’re disrupting businesses, communities, and economies right now. The World Economic Forum’s 2024 report, "The Cost of Inaction: A CEO Guide to Navigating Climate Risk", delivers a sobering message: ignoring climate risks isn’t just irresponsible—it’s economically devastating. 🌡️ Key insights from the report: 💥 Climate-related disasters have caused $3.6 trillion in damages since 2000, exposing critical vulnerabilities in supply chains and infrastructure. 📉 Physical risks could put 5-25% of EBITDA at risk for some sectors by 2050 under a 3°C warming trajectory. 💸 Transition risks, like carbon pricing and changing regulations, could impact 50% of EBITDA in energy-intensive industries by 2030. 🌱 Every $1 invested in climate adaptation yields $2-$19 in avoided costs, while green markets are projected to grow from $5 trillion in 2024 to $14 trillion by 2030. 💡 My reflections: 🔄 Resilience isn’t enough anymore. Too often, we focus on simply "weathering the storm" of climate risk. But true leadership is about rebuilding something better—rethinking markets, redesigning business models, and creating solutions that lead entire industries forward. 🌍 Supply chain fragility is the Achilles’ heel of the global economy. A single extreme weather event can cascade across operations, grinding everything to a halt. Climate-resilient supply chains can’t just be about survival—they must be radically adaptive, decentralized, and built to thrive under disruption. 📊 Climate risk is fundamentally redefining the concept of value. Businesses stuck chasing quarterly earnings are missing the bigger picture. In a world of rising costs and irreversible climate impacts, long-term value will belong to those who embed sustainability, resilience, and equity into their strategies. The time for cautious, incremental steps has passed. How are we using this moment to transform the way we work, innovate, and lead? #ClimateAction #Sustainability #Resilience #Leadership #Innovation

Climate Change Risk Assessments 🌎 Climate-related financial disclosure requirements are expanding across jurisdictions, increasing expectations for companies to assess and report on climate-related risks and opportunities. A structured climate change risk assessment (CCRA) is central to meeting these evolving regulatory demands. CCRAs evaluate both physical risks—such as extreme weather events, water stress, and sea level rise—and transition risks, including policy changes, carbon pricing, and shifts in market or technology landscapes. They also help identify potential opportunities linked to decarbonization, energy efficiency, and new revenue models. Scenario analysis is a core component. It enables companies to test strategic resilience under divergent climate pathways, including high-emissions futures and low-emissions transitions aligned with the Paris Agreement. Most regulatory frameworks now require both perspectives. Benefits of a robust CCRA include improved risk management, reduced exposure to disruptions, and strengthened alignment with investor expectations. Insights from these assessments can be embedded into enterprise risk systems, capital planning, and strategic roadmaps. Key challenges include short-term thinking in risk registers, limited access to forward-looking climate data, and misalignment between climate risk analysis and existing sustainability goals. These gaps can reduce the effectiveness of disclosures and slow organizational response. Recommended approaches include leveraging established scenarios (e.g. IPCC, IEA), integrating outputs into ERM systems, using frameworks like ISSB and TCFD for structure, and applying competitive benchmarking to validate assumptions. Cross-functional engagement improves practical relevance. As regulatory standards converge, CCRAs are becoming a baseline expectation. Those who develop structured, forward-looking assessments will be better positioned to adapt business models, manage uncertainty, and align with capital markets under increasing climate scrutiny. Source: Ramboll #sustainability #sustainable #business #esg #climatechange #risk

Sustainable agriculture: #Gender #responsive farm equipments. Growing up in an area where maize (corn) is grown on both large and small scale, tractors and other heavy farm equipments are used in the maize value chain. I've never seen a single woman driving a tractor cultivating land or any other farm work, because mostly these farm equipments are designed with a tall, heavy and strong male body in mind. Women already face many barriers in agriculture, access to and use of farm equipments and technology is on the top. Women play an important role in the sustenance of agricultural system and they have to be involved in the process of new technologies that are eco-sustenance. Designing farm equipments and other technologies that are gender responsive while considering the specific needs, preferences of women in the agricultural sector is paramount. This potato planting farm equipment👇 is quite gender responsive, it's ideal for small scale farmers especially women, easy to use, It's fast and can save on time and does not require a lot of energy to keep it running. What to be done: ✓Involve men and women in design process. ✓User centred design approach focusing on end user's needs and experiences. ✓Design products that can be easily adapted to different tasks and farm sizes. ✓Design affordable products that cater to the financial capacities for small scale farmers. ✓Prioritize safety features in product design considering the different physique of men and women. Follow Regina Wangare, let's keep practical sustainable programme/project initiatives conversations going. 💪❤️

"Our current #market-led approach to mitigating #climate and #nature risks is not delivering. There is an increasing risk of severe #societal disruption (Planetary Insolvency), as our #economic system drives further global warming and nature #degradation." Not, in fact, another alarmist catchcry from climate extremists, rather a statement from that most analytical and methodical of professions, #actuaries. A profession whose work underpins the functioning of the global pension market with $55 trillion of assets, and the global insurance market, collecting $8 trillion of premiums annually. When actuaries warn of a >$50% loss in global #GDP, it's (well past) time to sit up and listen. What's notable in this latest report (no doubt timed to coincide with the World Economic Forum's latest #GlobalRisk review) is that it reiterates a message from the Institute and Faculty of Actuaries' 2023 publication "The Emporer's New Climate Scenarios", that #ClimateChange risk assessment methodologies, and the climate #scenarios that we have been using to underpin our disclosures and #TransitionPlanning, are understating economic impact, as they often "...exclude many of the most severe risks that are expected and do not recognise there is a risk of ruin. They are precisely wrong, rather than being roughly right." 

🌍 Proud to share new report with the FAO I am honoured to have co-authored, alongside distinguished colleague Mohamed ABDEL MONEM and FAO Colleagues Sibyl Nelson, Sophia Ngugi and Fatma Abouzaid,MBA , the report “Empowering Women in Egypt’s Livestock and Dairy Subsectors – A Gender-Transformative Approach to Climate Resilience and Economic Inclusion.” The report investigates the critical role of women in Egypt's livestock and dairy industries amidst escalating #climatechange pressures. It shows how women play a pivotal role in Egypt’s livestock and dairy subsectors and yet they face significant obstacles magnified by climate change. Findings call for adopting a gender-transformative approach to address the root causes of inequality through targeted interventions. Only by unlocking women’s potential can Egypt build agricultural systems that are inclusive, sustainable, and resilient. 💡 I invite colleagues in #sustainability, #climateaction, and #genderequality to engage with these insights, share your perspectives, and explore how we can collectively advance inclusive, #resilientfoodsystems. Dcode Economic & Financial Consulting Mohamed Youssef Aly El Sherei Climate Vision Consulting FAO UNDP International Climate Initiative

Climate change isn't just an environmental issue. It's a critical business requirement. According to new research, businesses face significant risks from inaction, potentially losing 5-25% of their 2050 EBITDA. But here's the game changer: strategic climate adaptation could generate returns of $2 to $19 for every dollar invested. Key Takeaways: 🔹 Physical climate risks affect supply chains and operations. 🔹 Transitioning to a low-carbon economy provides opportunities. 🔹 Unprepared companies risk significantly higher cost pressure from carbon pricing or regulations. 🔹 Mitigation and adaptation strategies offer critical pathways to business resilience. 🔹 Companies must integrate climate strategy into their core business plans. Companies that actively manage climate risks will not only survive but thrive in a rapidly changing world. Are you prepared? World Economic Forum Boston Consulting Group (BCG) #sustainability #esg #climatechange #climateaction

New report from Accelerator for Systemic Risk Assessment (ASRA) warns governments and businesses they need a radical new approach to tackle escalating #climate and geopolitical #risks, writes James Murray. https://lnkd.in/eAaMjGMK Political and business leaders are 'ill-equipped' to deal with the escalating and inter-connected risks that are defining a new era of '#polycrisis'. That is the stark warning contained in a report from the Accelerator for Systemic Risk Assessment (ASRA), released today ahead of the UN General Assembly, New York Climate Week, and the upcoming UN Summit of the Future. The report, "Facing Global Risks with Honest Hope", details how interconnected risks, such as climate inaction, #biodiversity loss, global conflicts, and the unchecked proliferation of #AI and #disinformation, are driving global instability and undermining development efforts worldwide. It also warns how first order #risks threaten to have cascading effects, such as the way extreme heat not only directly impacts human health but also damages food systems, which in turn fuels the risk of #food insecurity, #migration, and #conflict. ASRA, which brought together over 50 risk experts to contribute to the report, argues governments, businesses, and investors urgently need to shift from an isolated to a #systemic approach to risk management. "It's become painfully apparent that climate change, biodiversity loss and other planetary scale challenges are interacting with each-other and with societal, economic and technological stressors, to create complex, multidimensional risks and crises," said Ajay Gambhir, director of systemic risk assessment at ASRA. "In this polycrisis world, transdisciplinary expertise and risk management strategies are going to be essential." The report acknowledges some positive progress has been made in improving risk management processes in recent years. But the authors argue the dominant approach to the discipline "remains fragmented and siloed - lacking cross-sector coordination, integrated governance, and focusing solely on single harms". It recommends that governments reform their approach to risk management, starting with the appointment of Systemic Risk Officers at the national and sub-national levels. It also calls for the appointment of a Global Systemic Risk Officer at the UN level to coordinate member states and other non-state actors. "As world leaders gather for UNGA and Climate Week NYC, it is essential to critically examine what works and what doesn't in our current approaches to risk management and to explore new, multidimensional strategies," said Ruth Richardson, executive director at ASRA.

It's finally here. Proud to announce the launch of the Gallagher Re's Natural Catastrophe and Climate Report: 2024. https://lnkd.in/gMST_MnU This report provides a robust view on natural perils, climate change, and sustainability issues. The document not only provides a wealth of valuable data, statistics, insights, and trend analyses, but also offers deeper dives into specific topics that are not only relevant to the insurance industry but also for a much broader swath of public and private sector interests. One particular in-depth area of focus in this year's report is an analysis of the ongoing drivers of US severe convective storm (thunderstorm) losses. 2024 was a costly, impactful, and meteorologically record-setting year. We saw a continuation of US SCS outbreaks leading to sizeable losses. The impact of several significant tropical cyclone landfalls (Helene, Milton, Yagi, Chido -- among others). The dichotomy of catastrophic flood events (UAE, Spain, Brazil, Germany, China) along with major drought conditions across swaths of continental regions (Americas, Europe, Africa). All of this occurred in the context of 2024 being the warmest year ever recorded. We're now witnessing multiple global agencies showing annual temperature anomalies running beyond the 1.5°C pre-industrial baseline (1850-1900). While we'd need to see this averaged over a full climatological average cycle (30 years) to officially surpass the Paris Agreement benchmark, it is psychologically a big deal to see land / ocean temperatures now start to creep up to and exceed this threshold. Perhaps the biggest takeaway for 2024 was the significance of billion-dollar insured loss events occurring in non-traditional high loss catastrophe regions of the world. Society tends to gravitate towards focusing on the most highly populated and economically mature regions of the world for catastrophe risk, but the events of 2024 show we are now witnessing the growing vulnerabilities and swings in volatility everywhere. We're already off to an exceedingly active start to 2025 with the wildfire outbreak in Southern California. What will the rest of 2025 bring? Stay prepared and know your risk. Huge thanks to my co-authors Brian Kerschner and Jin Zheng Ng for their work on this report. Additional kudos to Marie Ekstrom, Zahra Jasmin-Uddin, and Kathryn Couperwhite. And finally, major thanks to Eileen Shannon, Julia Lane, and several others on the Gallagher Re marketing team for getting this report out the door.