Apart from its serious impact on the environment and people, climate change is one of the biggest threats to economic stability.
Over the last two years, mounting public awareness, fanned by widespread perception that extreme weather events are becoming more frequent, as well as the growing weight of scientific evidence on changing weather patterns, has added further urgency to the debate.
A study by Deloitte focusing on the impact of climate change on the state of the economy has highlighted the immense cost and implications in this regard. Besides the most obvious physical risks (for example, the operational impacts of extreme weather events, or supply shortages caused by water scarcity), companies are exposed to transition risks which arise from society’s response to climate change, such as changes in technologies, markets and regulation that can increase business costs, undermine the viability of existing products or services, or affect asset values.
Policy regulation and investment has been identified as critical steps in stemming the tide.
