#183 Socio Economic Impacts of Climate Changes

After more than 10,000 years of relative stability—the full span of human civilization—the Earth’s climate is changing. As average temperatures rise, climate science finds that acute hazards such as heat waves and floods grow in frequency and severity, and chronic hazards, such as drought and rising sea levels, intensify. In this report, we focus on understanding the nature and extent of physical risk from a changing climate over the next one to three decades, exploring physical risk as it is the basis of both transition and liability risks.

Source: <https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Sustainability/Our%20Insights/Climate%20risk%20and%20response%20Physical%20hazards%20and%20socioeconomic%20impacts/MGI-Climate-risk-and-response-Full-report-vF.pdf>

There has been a discernible warming shift since 1900 in the northern hemisphere.

There has been a pronounced increase in global temperature and precipitation in 10 and 30 years. 

The incidence of drought, lethal heat and rising temperature of the water supply take place.

Some of the key climate variables show threshold of a sudden deterioration.

Detailed current measurements confirm trends.

Summary:

Prudent risk management would suggest limiting future cumulative emissions. While decarbonization is not the focus, decarbonization investments will need to be considered in parallel with adaptation investments, particularly in the transition to renewable energy. While adaptation is now urgent and there are many adaptation opportunities, climate science tells us that further warming and risk increase can only be stopped by achieving zero net greenhouse gas emissions. The next decade will be decisive, as decision makers fundamentally rethink the infrastructure, assets, and systems of the future, and the world collectively sets a path to manage the risk from climate change.