Climate change is a certainty, not a probability, and severe weather is becoming a part of everyday life.
Some $313 billion of economic loss resulted from weather and climate events in the last year, impacting people’s health, livelihood, and assets.1 Yet only 42 percent of weather and climate related losses were covered by insurance.2
Climate change is tied to tangible risks where the impact is immediate and measurable – business interruption, material scarcity, supply chain issues, and reputation damage. Regulators around the world are demanding action, reporting, and transparency.
Yet the interconnected nature of climate risk creates an opportunity to take a more holistic approach to building resilience through preparedness. As well, as the world moves toward achieving net-zero transition, new technologies and green solutions present an opportunity to make real progress in reducing greenhouse gas emissions and avoiding worst-case climate change scenarios.
But the uncertainty of investing in emerging markets and technologies can be an obstacle, especially in an increasingly volatile economy. Organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Mitigating physical risks is a critical first step. For sustainable growth, companies must also reduce the costs of the net-zero transition and de-risk climate-related investments – connecting capital to opportunities.
Insights to Make Climate Decisions
Explore our insights that help organizations make better climate decisions:
Preliminary year-to-date economic losses, including an initial view of Hurricane Ian based on various publicly available estimates, were $227 billion, with roughly $99 billion of the total expected to be covered by public and private insurers.
Q3 Global Catastrophe Recap
Climate change continues to grow in priority for executive leaders, entering their top 10 risks in 2022 – up 6 positions from 2020.
2022 Executive Risk Survey
The 2030 projected value of the voluntary carbon market is up from slightly over $1 billion in 2021.