Nedbank’s head of sustainability and climate resilience strategy, Mark Boshoff, emphasized that globally, the world has now realized that trillions of dollars in losses could result from inaction on climate change.
“The potential economic cost of damage from climate-related disasters and extreme weather can be staggering. In 2018, the US alone suffered losses of approximately $160 billion due to these disasters. This number is only expected to increase as the hazards become more complex and unpredictable. predicted,” he said at a Nedbank roundtable discussion held on February 20, 2023.
They also highlighted risks to infrastructure and supply chains.
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Boshoff said that with about 80% of global trade taking place in the supply chain, business leaders are becoming more aware of the risks that can affect their ability to move around the world, including issues of cost, speed, and responsiveness.
As such, Boshoff emphasized the importance of energy security, alternative energy sources, and energy generation to limit carbon emissions that increase climate change and have an impact on the economy, society, and business.
Lack of water
He mentioned that the issue of water scarcity is also a concern, not only in South Africa but globally. “Businesses must prioritize awareness of water scarcity and water security in their operations and supply chain,” he said.
Boshoff also touched on the risk of damaged community, reputation, and stakeholder relationships. He said employee activism is on the rise, with employees pushing management to consider the long-term impact on the environment, welfare, safety and health and ensure resources are conserved.
He explained that customers are becoming more aware of environmental and social issues, requiring companies to reduce emissions, produce biodegradable products and use 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 the supply chain, with more consumers demanding greater transparency from brands and businesses,” he said.
Boshoff stressed the need for urgent action to reduce the risks associated with climate change, as failure to act now could lead to financial losses and irreversible damage. They encourage businesses to take the lead in the fight against climate change by adopting sustainable practices and reducing their carbon footprint.