EFI Global

Ignoring Climate Risk And Resilience Adds Fuel To The Fire

 Wednesday, August 19, 2020

 Insurance Business

In recent years, awareness of climate risks has risen, with numerous studies illustrating the detrimental impacts of climate change on the natural environment and human society.

However, the world is acting too slowly in dealing with these climate risks, according to Rich Sorkin, CEO of climate science data firm Jupiter Intelligence.

“Currently, the world overall is repeating the mistakes of the COVID pandemic and the Global Financial Crisis – it is too slow to recognize and respond to enormous and imminent impacts on citizens and corporations,” Sorkin told Corporate Risk and Insurance.

“The private sector today is moving slowly to address climate impacts, with enormous variance among leaders who are slowly driving widespread change in large and complex organizations, and, unfortunately, the majority of companies globally who are just waking up to these challenges.”

According to Sorkin, similar to the Global Financial Crisis of 2007-2008, the global banking sector is the most exposed. According to data, there is a material discount in the value of residential and commercial property transactions in climate-vulnerable locations...
Risk Management