A landmark report by climate change scientists released in early August 2021 comes with a stark warning that time is fast running out to stop global warming from exceeding 1.5C, which is the lower end of the temperature targets agreed to in the 2015 Paris Agreement.
The report was the United Nation’s first major scientific review of climate change since 2013 and highlights how global surface temperatures are rising and that extreme weather patterns will increase.
In 2021 alone, we have witnessed devastating wildfires in several areas including Turkey, Italy, Siberia, the USA and Algeria, catastrophic flash flooding in the UK and Europe and record-breaking snowfall in Madrid, Spain. There has also been a drastic reduction of ice and permafrost in the Arctic regions. All of these have a direct or indirect impact on businesses. A report recently issued by Deloitte (Global 2021 Climate Change) highlighted five ways in which climate change is already impacting or threatening to impact business:
- OPERATIONAL IMPACT: these are the impacts felt by extreme weather disruption such as flooding
- SCARCITY OF RESOURCES: access to basic resources such as food, water and energy and subsequent potential cost increases.
- POLITICAL UNCERTAINTY: likely to increase
- INSURANCE: increased costs to cover the uncertainty of the impact of extreme weather.
- REPUTATIONAL DAMAGE: as climate change becomes ever present, how does an organisation react?
The IPCC report does state that there is still hope if the world acts fast. However, commitment is required from both governments and organisations to adjust environmental targets and to cut global greenhouse gas emissions and reaching zero CO₂ emissions by mid-century.
Sources:
- Deloitte Global 2021 Climate Change report
- The Business Continuity Institute
- United Nations Intergovernmental Panel for Climate Change