Nedbank’s head of sustainability and climate resilience strategy, Mark Boshoff, went to great lengths to explain that globally, the world has now recognised that trillion-dollar losses could occur due to inaction on climate change.
“The potential economic costs of damage from climate-related disasters and extreme weather could be staggering. In 2018, the US alone incurred a loss of around $160 billion due to such disasters. These numbers are only expected to increase as hazards become more complex and unpredictable,” he had said at a Nedbank roundtable discussion held on 20 February 2023.
He also highlighted the risk to infrastructure and supply chains.
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Boshoff said that with around 80% of global trade embedded in supply chains, business leaders are becoming more aware of the risks that could have an effect ontheir ability to move through the world, including issues of cost, speed, and responsiveness.
As such, Boshoff emphasised the importance of energy security, sourcing of alternative forms of energy, and energy generation to limit carbon emissions that exacerbate climate change and have an effect on the economy, society, and business.
Water scarcity
He mentioned that the issue of water scarcity was also a concern, not only in South Africa but globally. “Businesses will need to prioritise awareness around water scarcity and water security in their operations and supply chains,” he said.
Boshoff also touched on the risks of damaged communities, reputations, and stakeholder relations. He said that employee activism was on the rise, with employees exerting pressure on management to consider the long-term impact on the environment, their well-being, safety and health and ensure resources are conserved.
He explained that customers were becoming more vigilant on environmental and social matters, requiring firms to reduce emissions, produce biodegradable products and make use of renewable sources of materials as part of their sustainability journey,” he advised.
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“Youth voices, transparency and trust are also important issues to consider. There is an increased focus and pressure on human rights and environmental sensitivity in supply chains, with more consumers asking for greater transparency from brands and businesses,” he said.
Boshoff emphasised the need for urgent action to mitigate the risks associated with climate change, as failure to act now could result in huge financial losses and irreversible damage to the planet. He encouraged businesses to take the lead in the fight against climate change by adopting sustainable practices and reducing their carbon footprint.
