An annual risk survey published by the World Economic Forum (WEF) has put climate change and related environmental issues as the top five risks in terms of likelihood – ahead of risks ranging from cyber attacks and pandemics to geopolitical conflict and weapons of mass destruction. It is the first time in the survey’s history that one category has occupied all five of the top spots.
The 15th edition of the Global Risks Report 2020 pointed out that climate-related threats such as extreme weather, large-scale biodiversity losses and a failure of political leaders to slow planetary heating are now the top long-term risks facing the globe.
A press report by Thomson Reuters Foundation about the survey quotes WEF deputy head of the centre of geopolitical and regional affairs and WEF executive committee member Mirek Dusek as saying that a surge in climate change activism was putting “lots of pressure” on governments and businesses to do more, but that other risks – such as growing political polarisation and insularity – were simultaneously making climate action harder.
Mr Dusek said businesses face a growing range of climate-related risks, from unexpected regulatory changes to rapid shifts in consumer preferences and litigation linked to inaction on climate change, all of which can help drive action.
The shift comes as climate-changing emissions continue to rise strongly globally, despite government and business commitments to reduce them, and as the potential impact of runaway climate change becomes clearer.
Marsh & McLennan Insights chairman John Drzik said from wildfires in Australia, Brazil and California to worsening storms, floods and droughts, “all major indicators point that this is a situation that’s bad and it’s getting worse”.
WEF Norwegian president Borge Brende said it was increasingly clear that on climate change, “the cost of inaction far exceeds the cost of action”.
He pointed to the survey’s finding that “domestic political polarisation” is one of the top worries for the year 2020, calling it a barrier to effective climate action, such as reaching agreement to make polluters pay the costs of their emissions.
Zurich Insurance Group chief risk officer Peter Giger warned that “the longer we wait (to tackle climate change), the more painful the transition will be “because of the rapid plunge in emissions that delay would necessitate”.
But he said making the transition to a greener, low-carbon and more sustainable economy was now “an existential challenge for everyone on this planet”. He pointed to the rapid disappearance of insect species around the world, including those that pollinate 75% of the world’s crops, as a result of climate change and other pressures.
Mr Giger said if insects and the pollination services they provide disappear, “that’s a catastrophic outcome” for food security and for business. M