By Amy Barnes ,
Head of Climate & Sustainability Strategy, Marsh
10/09/2024 · 4 minute read
We have reached the point where the cost of climate inaction is greater than the cost of climate action. Quite fittingly, this year’s New York Climate Week theme is two simple words: It’s time.
Across the globe we are experiencing the fallout from the first year-long breach of the 1.5oC warming limit. In June, Germany experienced devastating floods, while heavy rains associated with Typhoon Gaemi lead to widespread flash floods in the Philippines in July. Both South America and Sub-Saharan Africa have had their warmest H1 periods on record. In the US, nearly 30,000 fires have burned more than 5.2 million acres in the last year — a 37% increase on the 10-year year-to-date average of 3.8 million acres.
Climate change continues to have a devastating impact on people all over the world, changing how we live and affecting how we do business. Global supply chains are being tested by the changing risk landscape — this speaks to not only global trade and operations, but also to food systems and ultimately the health of citizens.
On our journey to transition, we have reached a point where we not only need to mitigate the impact of climate change, but also need to find ways to adapt to the lasting changes to our climate, some of which we are already starting to experience.
Sustainable living will need to be supported by resilient ways of doing business. Companies need to understand their vulnerabilities and act on this knowledge in their future-proofing and strategic planning. The path to adaptation for businesses is discussed further in Marsh’s soon to be published report ‘How businesses can become more resilient to the physical impacts of climate change’.
Between September 22-29, Climate Group, in partnership with the United Nations General Assembly, will host a global delegation of business leaders, political change makers, and social representatives of all ages and backgrounds at New York Climate Week. This group will take part in over 600 sessions. During “The Hub Live”, taking place on the Monday and Tuesday, 1000 of the most influential leaders in business, government, and climate sectors will explore four key areas:
Marsh McLennan executives will take part in a number of practical discussions at New York Climate Week exploring the role that the insurance industry plays across all of these themes, through the derisking of projects to support the climate transition. Organisations are still grappling with two key questions:
During these discussions, Marsh McLennan executives will provide examples on the realities of risk appetite, the challenges and implications, and how to unlock these emerging transition opportunities.
The insurance industry will need to develop innovative, robust, and sometimes novel ways to support the ambitions in these areas. This work has begun, and now it is time to turn preparation into action.