Taking Action On Climate Change

Friday, March 8th, 2019 Risk Management

Last October, the United Nations’ Intergovernmental Panel on Climate Change (IPCC) reported in its Summary for Policymakers that the world is failing to keep the global temperature increase below the recommended 1.5°C from pre-industrial levels, and temperatures are instead climbing toward a 3°C rise.

Even reaching 2°C above pre-industrial levels will mean a likelihood of more frequent extreme weather events, resulting in significant economic shocks and major business interruption losses. A 3°C temperature rise will likely be catastrophic. The IPCC said that limiting the increase to 1.5°C will require “rapid, far-reaching and unprecedented changes in all aspects of society.” For example, the transition to a cleaner energy system alone will require an investment of around 2.5% of global GDP—equivalent to the value of all goods and services produced worldwide—every year for the next two decades.

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External References & Further Reading

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