The World Economic Forum, WEF, presented two studies that call on the productive sector to act against the risks of the climate crisis, these are ‘The Cost of Inaction: A CEO’s Guide to Tackling Climate Risk’ and ‘Business on the Edge: How to Strengthen Industry Resilience to Climate Risks’.
With them, he warns that companies that do not adapt may see their annual corporate profits reduced by up to 7% by 2035, due to events such as extreme heat. This would mean more than double the impact generated by covid-19, and in some sectors the loss could be up to 20%, with the most exposed being telecommunications, public services and energy.
“Companies in energy-intensive sectors that fail to decarbonize face increasing transition risks as global climate regulations tighten, and carbon pricing alone could shave up to 50% of your profits by 2030”, notes the report.
Rodrigo Suárez, sustainability leader for Latin America and the Caribbean at Marsh McLennan, pointed out that extreme weather events are a risk that can have a negative impact in the next decade, understanding them as a threat that affects terrestrial systems. it encourages biodiversity loss, endangers ecosystems and limits opportunities for economic growth.
“The dependence of people, companies and communities on ecosystem services is gaining greater relevance and consideration day by day. Considering that impacts are unpredictable, bold and collaborative steps must be taken to address these risks and build a sustainable future for current and future generations.”
If no action is taken, as indicated by the expert, The WEF forecasts that the annual fixed asset losses of listed companies will be between US$560 billion and US$610 billion in 2035.and the average ebitda would fall between 6.60% and 7.30% depending on whether a high or low emissions scenario occurs.
By 2045, losses will be between US$680 billion and US$850 billion, in ebitda it would be 8.10% or 10.10% and by 2055 they would lose between 9.90% and 12.80%.
Climate risks, comments Suárez, represent a significant risk, not only for productive activities, but also for the supply chain and the financial system as a whole.
“In Colombia, we face critical scenarios such as a shortage of water resources, while other regions suffer from flooding. These situations highlight the need to manage risks differently, adapting to the changing realities of our environment” Suárez concluded.
