YNTR: Climate Risk and Response: Physical Hazards and Socioeconomic Impacts

You Need to Read McKinsey Global Institute’s Climate risk and response: Physical hazards and socioeconomic impacts by Jonathan Woetzel, Dickon Pinner, Hamid Samandari, Hauke Engel, Mekala Krishnan, Brodie Boland, and Carter Powis

This comprehensive report identifies 7 principle characteristics of physical climate risk, surveys the substantial physical impact climate is already having, addresses socioeconomic risks, which will be both nonlinear and global, and highlights that lower GDP per capita countries are generally more exposed to risk. The report ends by exhorting decision makers that:

In the face of these challenges, policy makers and business leaders will need to put in place the right tools, analytics, processes, and governance to properly assess climate risk, adapt to risk that is locked in, and decarbonize to reduce the further buildup of risk.

Much as thinking about information systems and cyber-risks has become integrated into corporate and public-sector decision making, climate change will also need to feature as a major factor in decisions. For companies, this will mean taking climate considerations into account when looking at capital allocation, development of products or services, and supply chain management, among others.

Bring your loved ones together this holiday season to give #GiftsToTheFuture. Each day on the way to welcoming the new year, we'll share a little something you can do to help make it (and many years that follow) better for those you love. enough.co/gifts-to-the-future

How you earn, spend, save, and invest can grow climate solutions faster. Let's work on it together?