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Insuring our future: Build defenses, warning systems, and resilient infrastructure — The evolving risk horizon

A daily blog series during COP26 — Adaptation, Loss and Damage
The View of wildfire on height of the flight of the bird.

On day two of the nature and land-use event, sessions took deeper dives into the loss and damage caused by climate change and the adaptation that will be needed to tackle it. There was also exploration of positive approaches to land use and sustainable agriculture.

Speaking today, Zitouni Ould-Dada of the UN’s Food and Agriculture Organisation noted how agri-food systems are responsible for around a third of global greenhouse gas emissions. Therefore, “agriculture has to receive the same attention as energy and transport” as “a fundamental part of the solution to the climate crisis.”

It is clear that governments, scientists, activists, and indigenous groups need to work together to keep COP26’s goals in reach. Dr Ould-Dada stressed how innovation is “not just about hard technologies, but is also about traditional and indigenous knowledge where innovation happens all the time.”

The pressure on companies to demonstrate resilience and adaptation in the face of increasing climate volatility is mounting — from regulators, investors, and customers.

The World Economic Forum’s Global Risks Report 2020, published with support from Marsh McLennan, sounded the resilience and sustainability alarm. For the first time in the history of the survey, all of the top five global risks in terms of likelihood were environmental risks. 

Leaders and experts deemed the number one risk in terms of likelihood to be “extreme weather events with major damage to property, infrastructure, and loss of human life”.

One area of extreme weather that is growing in scale is wildfire. Over the past decade we have seen climate change not only cause a rise in temperature, but also affect rain patterns. Low precipitation and high temperatures lead to dry vegetation, resulting in the increased risk of wildfire.

Now, with scientific advances, climate risks such as wildfires can be modeled with greater accuracy. At Marsh, we help our clients adapt to the increased threat of climate risks by enabling our clients to embed analytics and insights into their risk management and business plans.

This blog is part of the COP26 series.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”