Rising tides give way to sinking economies

Gone are the days when a rising tide could be said to lift all boats. According to the on Climate Change, sea levels rose almost twice as much between as they did over the previous century. Its forecast is for a rise of by the year . Yet another recent study from indicates that sea levels at the end of the century could surge by over  

 Either of these scenarios are a scary realization of the lives of with a lot of social and economic instability. It is estimated by the United Kingdom’s National Oceanographic Centre, for example, that the to the world from rising sea levels could be as high as. Most of this can be explained by the fact that so much of the global critical infrastructure comprises of exposed energy plants, water treatments, underground communications, and transportation systems, including seaports and rail links. In the United States, on the , flooding causes of vehicle delays per year. According to a University of New Hampshire study, that number could balloon to

 According to Zurich Insurance Group’s Head of Sustainability Risk, most future global growth lies in coastal cities. So, the ripple impacts on trade and could be unbearable.

 Companies need scenario planning to get a good feel of their exposure to these . According to Dr. Amar Rahman, a Principal Risk Engineer at Zurich Insurance Group specializing in natural hazards resilience, having a good understanding of the supply chain is crucial. Given such complexities as globalization and , most corporations don’t have this. There is a need to understand where critical is located so that strategies for both short-term disruptions and long-term adjustments can be prepared.

 As awareness of risks from climate change increases, Rahman warns that too few businesses have conducted a review; this starts to worsen the problem that threatens both and society.

 According to the Global Risks Report by the World Economic Forum, an estimated million people will likely be vulnerable to a rise in sea level by . This includes percent of Europe’s largest cities, cities with populations over , and people in low-lying Chinese cities, a number that increases by each year. For Bangladesh, the result of such a rise would be the disappearance of roughly of its land, displacing as many as people. Molyneaux says, “By investing one dollar in prevention, you save as much as five dollars in costs during recovery.”

 Building a strong foundation for both communities and corporations, according to business , may help the global use of the supply chain, as a review of the environmental risks shows new .

 "When building a new facility or investing in a new country, a business would benefit from a granular view of the risks involved,” says . “But risks are accompanied by opportunities. It could be a competitive advantage if your resilience is stronger than that of your competitors."