Global Risk Series: April 2021
04/08/2021
Here, we take a look at the latest industry knowledge, stories and risk insights produced by Zurich globally in April, with a focus this month on the impact of climate change on organisations and supply chains.
1. Why businesses should care about biodiversity
“Companies are dependent on biodiversity. The level of dependency can vary across sectors, but the loss of biodiversity is a critical risk for all,” explains Peter Giger, Group Chief Risk Officer at Zurich Insurance Group.
Biodiversity provides basic raw materials and medicines. IPBES estimates that 2 billion people rely on wood fuel to meet their primary energy needs, 4 billion people rely primarily on natural medicines for their healthcare, and 70 percent of drugs used for cancer are natural or are synthetic products inspired by nature.
This is why the World Economic Forum’s 2021 Global Risks Report ranks biodiversity loss in the top five risks in terms of likelihood and impact for the second year in a row.
2. Will climate change dry up our supply chains?
There is concern that droughts could cause some of the world’s most important rivers to become unnavigable leading to the loss of vital inland shipping routes. Should we be worried and how should we respond?
The Rhine is not only one of Europe’s longest rivers, it is also one of its most important transport conduits. However, at the end of 2018, following one of the longest dry spells on record, parts of the Rhine were at record-low levels for months. This made the river unnavigable for large cargo barges causing a 27 percent year-on-year fall in transport on the Rhine.
Amar Rahman, Global Lead for Climate Change Resilience Services at Zurich Insurance Group, discusses the risks and ways we can all help to mitigate potential issues with the future of supply chains.
3. Mitigation and adaption: how do they help us combat climate change?
There are two distinct ways to respond to climate change: mitigation and adaptation. But how do they differ and do they both deserve equal focus?
We need to act with urgency on climate change. Decisively and extensively. There are essentially two categories of actions we can take, but frustratingly they tend to cause confusion rather that clarify what needs to be done. So, what is the difference between climate change mitigation and climate change adaptation and how can they help the planet?
Michael Szönyi, Flood Resilience Program Lead, Group’s Sustainability, Zurich Insurance Group discusses the differences and arguments for both, as well as what can happen if we fail to do so.
4. Climate change is reclaiming the risk management spotlight
It has been tough for risk managers to concentrate on matters unrelated to the COVID-19. But as pandemic concerns shift, attention can now focus on other risks.
Over the past year, it’s been tough for risk managers to concentrate on matters unrelated to the COVID-19 pandemic. Concerns over lockdowns, protecting remote workers, handling claims, risk engineering at a time when travel is curtailed, and others have kept them focused on pandemic-related issues.
Climate change, meanwhile, hasn’t taken a break. And neither has the need for implementing climate resilience and sustainability measures. Companies haven’t ignored their sustainability work during the pandemic, but the attention it has demanded has likely left less time for risk managers to work closely with sustainability teams, says Gabrielle Durisch, Head of Sustainability for Commercial Insurance at Zurich Insurance Group.
5. Climate change is already underway. How will we adapt and future-proof our companies and communities?
Climate change continues to be a core business risk. But are we properly assessing associated risks? Learn how to identify, assess and mitigate against all climate change risks.
Whilst 2020 was the year of the pandemic, it also tied 2016 as the hottest year on record and significant loss was seen across all continents, whether that be fires in California or ice loss in Greenland.
Gabrielle Durisch, Head of Sustainability for Commercial Insurance at Zurich Insurance Group and Amar Rahman, Global Lead for Climate Change Resilience Services at Zurich Insurance Group, discuss this topic and more in the latest conversations on risks podcast.
