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New York Climate Week: A call for action

We have reached the point where the cost of climate inaction is greater than the cost of climate action. Quite fittingly, this year’s New York Climate Week theme is two simple words: It’s time.
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By Amy Barnes , 

Head of Climate & Sustainability Strategy, Marsh

10/09/2024 · 4 minute read

With records continuing to be broken on the global climate front — for temperature rise, ocean heat, sea level rise, Antarctic Sea ice loss, and glacier retreat — this year’s New York Climate Week takes place against a somber backdrop. 

We have reached the point where the cost of climate inaction is greater than the cost of climate action. Quite fittingly, this year’s New York Climate Week theme is two simple words: It’s time.

Across the globe we are experiencing the fallout from the first year-long breach of the 1.5oC warming limit. In June, Germany experienced devastating floods, while heavy rains associated with Typhoon Gaemi lead to widespread flash floods in the Philippines in July. Both South America and Sub-Saharan Africa have had their warmest H1 periods on record. In the US, nearly 30,000 fires have burned more than 5.2 million acres in the last year — a 37% increase on the 10-year year-to-date average of 3.8 million acres.

Climate change continues to have a devastating impact on people all over the world, changing how we live and affecting how we do business. Global supply chains are being tested by the changing risk landscape — this speaks to not only global trade and operations, but also to food systems and ultimately the health of citizens. 

On our journey to transition, we have reached a point where we not only need to mitigate the impact of climate change, but also need to find ways to adapt to the lasting changes to our climate, some of which we are already starting to experience. 

Sustainable living will need to be supported by resilient ways of doing business. Companies need to understand their vulnerabilities and act on this knowledge in their future-proofing and strategic planning. The path to adaptation for businesses is discussed further in Marsh’s soon to be published report ‘How businesses can become more resilient to the physical impacts of climate change’.

Between September 22-29, Climate Group, in partnership with the United Nations General Assembly, will host a global delegation of business leaders, political change makers, and social representatives of all ages and backgrounds at New York Climate Week. This group will take part in over 600 sessions. During “The Hub Live”, taking place on the Monday and Tuesday, 1000 of the most influential leaders in business, government, and climate sectors will explore four key areas:

  • The New Industrial Revolution.
  • The Energy and Transport Transition.
  • Nature, Food Systems, and Health.
  • Leadership and Green Growth.

Managing risk and building resilience should remain key pillars in all discussions, to ensure a secure and sustainable future:

  • The New Industrial Revolution: A societal shift as significant as the energy transition has not been seen since the turn of the 20th century. The Industrial Revolution demonstrated our ability change the way we live, learn, build, and do business by seizing opportunities and embracing innovation. Now, as we turn towards a green economy, we must do it again — with urgency. To pave the way for change, we need to continue finding ways to mitigate and transfer associated risk.
  • The Energy and Transport Transition: Transportation has become a true nexus for the energy transition. Transportation remains one of the biggest emitters of greenhouse gases. However, the intersectionality between the corporate sector and transportation has allowed the corporate sector to drive change. The decarbonisation of logistics has played a key role in the transition. To take this further, the development of smarter, more integrated approaches to net-zero transportation will need to be supported by financial institutions and the insurance industry. 
  • Nature, Food Systems, and Health: Climate change is recognised as the largest public health crisis of our time. As well as carbon emissions, climate change can be measured by the impact it is having on human life, often through food and water shortage, and health and wellbeing. Preserving nature is key to both reducing emissions and restoring food systems. Current and forecast climate-related changes demonstrate that businesses will need to adapt their operations moving forward, for their own resilience and for the good of the people. Understanding current risk and the risks associated with a new landscape are vital.
  • Leadership and Green Growth: To truly gain momentum in the transition, hesitancy from funders will need to be allayed. The transition requires solutions and technologies to be funded at scale, while funders are keen to ensure solutions are indeed scalable. The insurance sector will be pivotal in helping to derisk these solutions and technologies while building resilience into the transition. 

Marsh McLennan executives will take part in a number of practical discussions at New York Climate Week exploring the role that the insurance industry plays across all of these themes, through the derisking of projects to support the climate transition. Organisations are still grappling with two key questions: 

  • How do they secure the correct finance? 
  • And could insurance be a more prominent tool in accelerating the deployment of capital? 

During these discussions, Marsh McLennan executives will provide examples on the realities of risk appetite, the challenges and implications, and how to unlock these emerging transition opportunities.

The insurance industry will need to develop innovative, robust, and sometimes novel ways to support the ambitions in these areas. This work has begun, and now it is time to turn preparation into action.

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