Adapt or die – the message on climate change

Risk managers will need to learn to be adaptive if their businesses are to thrive as the climate changes. That was the stark warning from Antonella da Cunha, group risk manager at Capespan. Speaking in Cape Town, Ms da Cunha said it was clear that “if you are not adaptive, you will miss out”, adding: “You can live without candles but you cannot live without water.” Referring to the recent drought in Cape Town, she said companies and individuals were forced to change their behaviour. Risk managers in the Cape Town municipalities said the recent drought in Cape Town was a risk management success, as the city was able to cut back on water usage and avoid a shudown of supplies. A group of risk managers said the council policy of issuing ‘Day Zero’ ultimatums had the desired effect of raising awareness and cutting consumption. “We got criticism from central government,” said one risk manager, “but nobody had listened to our warnings before. Once there was a Day Zero date set, we got everyone’s attention.” Drought had been on the risk register for many of the city’s risk managers for a couple of years, so there had been some planning ahead. The risk managers said the drought threat is over for now and the good news is that increasing numbers of firms have established ways to access water without draining the local supply. “We have a system that shows hot- and not-spots,” explained another risk manager. “It became a competition as people worked to show they were a not-spot for drawing on the city’s supplies. “People have invested in alternatives. They are capturing rain water in greater volumes and reducing their water usage.” The risk manager said this is going to be an ongoing issue for the city, as climate changes increasingly impacts southern Africa. However, there are signs that companies will look to use strong risk management to help them through. “People were talking of leaving the city, but now it is a question of properly managing the risk,” he added. Others spoke of their personal initiatives – using their swimming pools to store grey water and having massive amounts of storage tanks installed to catch any rainwater. The key, they said, will be for the city to successfully capture storm water, which currently tends to flush out to sea. Ms Da Cunha said these kind of water shortages – and even surges – are something business learn to factor in. “I don’t have a solution for climate change,” she said, “but we have the ability to change what we are doing.” Becoming conscious of the risk and being committed to changing the culture would be critical going forward, she said. “We would be irresponsible not to take action.” Western Cape had a climate change strategy, she said, echoing the words of other city-based risk managers. But she asked the risk managers attending the Risk Lab whether they were fully factoring in climate risks in any new developments. It is a continual process, she said. Last year, for example, Johannesburg had also been threatened by drought and the city was encouraging good behaviour among its citizens. However, the rain last winter refilled the dams. That is not the end of the story for Ms Da Cunha, however. “We have plenty of water now and the dams are at capacity,” she said, “but that has become a new risk.” She explained that if there is plenty of rain again in the few months ahead, the dams will be stressed and the authorities will relieve the pressure by opening the sluices. The impact of that for Capespan is that the water will flood adjacent farmland, negatively impacting supplies and then prices. “Climate is a disruptor,” she said “and it is universal. It doesn’t matter what industry you are in, you will be impacted. “Risk management will be inadequate if you only look at traditional ways to manage risk,” she stressed. It is time for change, Ms Da Cunha concluded.

Adapt or die – the message on climate change

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