The new reality: Perilous times for Mother Earth
Urgent need to manage transition and climate risk and building resilience
So, to practically nobody’s surprise, 2024 is the warmest year on record globally, and the first calendar year that the average global temperature exceeded 1.5°C above its pre-industrial level. In other words, the first year to breach the Paris Agreement in 2016 to pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels”.
As Prof Joeri Rogelj, director of research at the Grantham Institute – Climate Change and Environment, Imperial College London, says: “A single year with temperatures 1.5°C above preindustrial levels does not mean we’ve reached 1.5°C of global warming. However, it does mean we’re getting dangerously close.”
He adds: “Every fraction of a degree – whether 1.4, 1.5, or 1.6°C – brings more harm to people and ecosystems, underscoring the continued need for ambitious emissions cuts. While the hottest year on record is alarming, the case for action makes more sense than ever: the cost of solar and wind energy is falling rapidly and is now cheaper than fossil fuels in many countries. Governments can build healthy economies with stronger, more decisive action to accelerate the transition to clean energy.”
Dr Friederike Otto, senior lecturer at the Centre for Environmental Policy, Imperial College London, adds: “This record needs to be a reality check. The climate is heating to levels we’ve spent years trying to avoid because countries are still burning huge amounts of oil, gas and coal. A year of extreme weather showed just how dangerous life is at 1.5°C. The Valencia floods, US hurricanes, Philippines typhoons and Amazon drought are just four disasters last year that were worsened by climate change. There are many, many more.”
He concludes: “The world doesn’t need to come up with a magical solution to stop things from getting worse in 2025. We know exactly what we need to do to transition away from fossil fuels, halt deforestation and make societies more resilient to the changes in the climate.”
A report late last year by an international group of scientists from Oregon State University, the Potsdam Institute for Climate Impact Research, Harvard University and others, and published in the journal BioScience, titled The 2024 state of the climate report: Perilous times on planet Earth, is particularly scathing.
“We are on the brink of an irreversible climate disaster. This is a global emergency beyond any doubt. Much of the very fabric of life on Earth is imperilled. We are stepping into a critical and unpredictable new phase of the climate crisis,” it says, adding that current policies have us on track for approximately 2.7°C peak warming by 2100.
“We must urgently reduce ecological overshoot and pursue immediate large-scale climate change mitigation and adaptation to limit near-term damage. Only through decisive action can we safeguard the natural world, avert profound human suffering, and ensure that future generations inherit the liveable world they deserve. The future of humanity hangs in the balance.”
It’s depressing stuff but it highlights the new reality. Firstly, that people, companies and governments need to take action to ensure a rapid transition to net zero. Secondly, that nature risk is becoming a crucial issue. And finally, in the light of the changes in climate, the critical need to focus on adaptation and build resilience. Which is why Sustainability Risk Review has three clear areas of focus: transition risk, climate risk & resilience, and nature risk.
As businesses and governments the world over wake up to the full economic and social costs of the impact of climate change, it is more vital than ever that organisations focus on building a sustainable and resilient structure and manage/mitigate the associated risks.
To make this transition as seamless as possible, companies need to work with investors and insurers, regulators and governments to find solutions. The associated risks need to be identified, measured, managed and transferred in the most efficient way possible.
Sustainability Risk Review will address the increasing need to understand and mitigate climate risks, the transition to net zero, and nature risk, including regulatory demands, disclosure requirements, the need for adaptation and the imperative to build resilience.
