Multinational consulting giant PricewaterhouseCoopers (PwC) has issued two reports that find that climate disruption will have increasingly destructive impacts on business. Global supply chains, assets and infrastructure of fully 85 percent of companies are at risk.
PwC’s warnings are playing out in real time. PwC says that only 33 percent of $380 billion lost in 2011 to natural disasters was covered by insurance, and on the US economy could total $45 billion in damage and lost production, with the losses from closed businesses and drops in consumption possibly outweighing the cost of physical damage.
The second PwC report - - says the world is heading for an unimaginable six-degree Celsius – 11 degrees Fahrenheit - rise in temperature by the end of the century. PwC says that companies need to address a more pessimistic outlook when making investments in long-term assets and infrastructure, particularly in coastal and low-lying areas.
PwC says that drought, poor water quality, flooding and other water-related challenges negatively affected 53 percent of the world’s largest companies in the past five years, up from 38 percent last year. In September, the ’s 2012 found that 81 percent of reporting companies identified physical risks from climate disruption, compared to 71 percent in 2011. Further, 37 percent of companies perceived these risks as a “real and present danger,” up from 30 percent in 2011 and 10 percent in 2010.
Those numbers will mercilessly rise with atmospheric carbon concentrations and the global thermometer.