Wangari Maathai once said “The environment and the economy are really both two sides of the same coin. If we cannot sustain the environment, we cannot sustain ourselves.” In an ever changing and uncertain global environment, the importance of risk assessment for all your projects is now more vital than ever.
Annually the World Economic Forum publishes the Global Risk Report (GRR) that provides the risks which are most likely to have major impacts globally.
The Top 5 Global Risks in terms of Likelihood in 2020 are Extreme Weather, Biodiversity Loss, Climate Action Failure, Natural Disasters, and Human-Made Environmental Disasters. For the first time in 13 years of the study, environmental aspects are dominating the global situation.
Extreme Weather, Biodiversity Loss, Climate Action Failure, Weapons of Mass Destruction and the Water Crises are expected to have the biggest impacts. Climate change and Biodiversity Loss are having a greater affect than many expected.
It is very interesting to note that Infectious Diseases is listed as one of the factors from a societal perspective that will have the biggest impact, and this has been playing out worldwide over the past few months with COVID-19. In our last two articles we looked at the Town Planning impact of COVID-19, so if you missed these articles, please go back and read them on our website under News – https://ace-env.co.za/
Given that Biodiversity Loss is a risk factor that will have a large impact on companies and the environment, it is important to ensure that the possible environmental impacts of your project be thoroughly investigated. “The destruction of nature will inevitably impact bottom lines” (Page 48 of GRR), yet nature often suffers as people focus purely on the bottom line. It is vital that businesses realise the interconnectedness of nature and the bottom line before it is too late.
The GRR states on page 35 that an “Increasing pressure to respond is generating transition risk at the individual company level as each company needs to reassess assets, reconcile trade-offs and develop new capabilities to move towards a more sustainable model. At the same time, there is growing acknowledgement among some critical financial-sector players that environmental risks could threaten the broader economic outlook, which could be a sign of more positive shifts moving forward.”
Over time it has become more evident that environmental impacts should be included in any company risk profile. Ensuring that you conduct a complete Environmental Impact Assessment before the commencement of any of your activities can reduce the possible environmental, social and economic impacts on your projects and company.
According to the GRR the last five years recorded as the warmest with natural disasters becoming more intense and more frequent. Only in the past year we’ve witnessed unprecedented extreme weather throughout the world. Since the end of 2019 and the start of 2020, the world has seen some devastating natural disasters which has affected livelihoods and economies all over the world. Disasters which might have affected yourself or people you might know, events such as the:
- The Australia Bushfires, resulting in the evacuations, destruction, loss of lives and biodiversity, property losses, income losses and knock to the countries economy.
- The brown glaciers in New Zealand forming due to the soot of the Australia Wildfires, causing the possible increase of the melting of the glaciers with a possible 30%. This in turn will have other effects on the surrounding environment.
- Floods and mudslides in Brazil.
- Locust Infestation emergency in Pakistan, which resulted in the loss of crops and subsequent loss in produce.
- Floods in South Africa, Dubai, Indonesia and other countries. The floods in South Africa during December 2019 has left several people in areas such as Gauteng stranded and unable to go to work. Damage to property and infrastructure and loss of income during these floods has costed the economy millions of Rands and not to mention the loss of lives.
- COVID19 Pandemic. The effects of the COVID19 are felt by everyone in the world currently. With companies under lockdown, health care systems under stress and major loss in incomes and resources, the effects of this pandemic will last for years.
Events such as these have devastating effects om communities and businesses. Not having contingencies, strategies, mitigation measures and planning in place could result in having to close your company doors. “Worldwide economic stress and damage from natural disasters in 2018 totaled US$165 billion, and 50% of that total was uninsured” (GRR, page 31). With an increase in natural disasters, this amount will rise.
The GRR ranks the following as the Top 10 Risks by Likelihood and Impact over the next 10 years for multi-stakeholders as (descriptions of the risks in Appendix A of the GRR):
Most Likely Risks
Risks with Highest Impact
When the possible impacts of infectious diseases were projected for 2020, the WEF could never have predicted the vast impacts the COVID19 pandemic will have on the world in this year. Companies, insurance industries, financial institutions and other stakeholders which make use of the GRR for their annual planning and risk assessments would have had an advantage in strategic planning for the year to ensure measures are in place to reduce the possible impacts. Having mitigation measures and strategies in place to address the possible risks, could ensure your companies continued existence.
Ace Environmental Solutions have qualified Environmental Impact Assessment Practitioners, registered with the South African Council for Natural Scientific Professions (SACNASP) and Environmental Assessment Practitioners Association of South Africa (EAPASA) who can assist you with conducting your Environmental Impact Assessments, and help you assess and mitigate your possible environmental, health and social impacts for your projects. And help you develop an Environmental Management Plan to mitigate and reduce your possible environmental impacts.
“The only way forward, if we are going to improve the quality of the environment, is to get everybody involved.”- Richard Rogers
Find the complete Global Risk Report for 2020 at: https://www.weforum.org/reports/the-global-risks-report-2020
Please contact us to see how we can be of service to you to mitigate these risks and potential negative impacts and maximise environmental benefits and financial returns.
GM Visagie | MD – Ace Environmental Solutions | 012 663 5200 | gm@ace-env.co.za
