As countries face the biggest health crisis in living memory and climate risk, the defining challenge of the modern era, world leaders must resist the trap of parking one systemic risk to address the other.
A global coalition of institutional investors, banks, insurers, rating agencies and governments, representing over US$10 trillion in assets, has said the delay of the COP26 UN Climate Change Conference until next year should not be allowed to stall critical progress being made in building greater resilience to climate risk, after holding high-level talks at Climate Week NYC 2020.
The threat of asset damage, operational disruption and human suffering from physical climate risks and disasters has continued to rise in 2020, leaving economies, societies and communities exposed to the accelerating phenomena of ‘cascading’ risk. The latest wildfires in the US illustrate this ripple effect, turbocharged by an extreme summer heatwave and compounded by the pandemic, impacting the power grid, water supplies and air quality.
According to the Coalition for Climate Resilient Investment (CCRI), with modern societies now highly dependent on networks, critical infrastructure assets and supply chains are more likely to trigger multiple risks and increase exposure. In response to the rising frequency of cascading events, the urgent integration of physical climate resilience into the mainstream infrastructure investment is the core CCRI goal.