The Smart Cube Releases Research and Analysis on the Impact of Climate Change on the Global Economy and Solutions to Help Mitigate Future Losses
LONDON/NEW DELHI, 29 July 2014: The Smart Cube, a global professional services firm specializing in custom research and analytics, today announced the release of a comprehensive research and analysis study on the impact of natural disasters due to climate change on the global economy. The study also examines specific markets and industries impacted, those most and least vulnerable and those most prepared for future losses. Also, the study offers solutions to help markets and organizations mitigate future losses. The Smart Cube has conducted over 900 risk management and analysis projects for major global organizations since 2009.
This research also cites real world case studies in which companies effectively deal with natural disasters – notably Western Digital, Starbucks, Wal-Mart and Noble Energy.
Highlights from the study are below and to view this research and analysis study, click here:
- With rising frequency of extreme/erratic climate changes, economic losses will increase significantly.
- Global economic losses from natural disasters averaged $200 billion in the past 10 years (2003-2013) – with 2011 being the worst year on record due to the Japan earthquake and tsunami with damages totaling $210 billion.
- 2013 saw 296 disasters with ood, tropical cyclones and severe weather leading all perils and costing roughly $192 billion. North America and Asia suffered 70% of those economic losses.
The Smart Cube identified the countries with high vulnerability that need to strengthen policies and ensure they have effective natural disaster plans in place to mitigate climate change impact. These include:
- High Vulnerability Countries: US, UK, France, Switzerland, Brazil, Italy, Australia, South Africa, Dominican, Republic, Fiji, Jamaica
- Low Vulnerability Countries: China, Iran, Egypt, Russia, India, Sri Lanka, Vietnam, Indonesia
This research and analysis also cites which countries are well prepared to deal with natural disasters and which are not:
- Well Prepared: US, UK, France, Switzerland, Brazil, Italy, Australia, South Africa, Dominican Republic, Fiji, Jamaica
- Not Well Prepared: China, Iran, Egypt, Russia, India, Sri Lanka, Vietnam, Indonesia
This research and analysis outlines the industries most affected and cites real world examples of companies successfully dealing with disasters around the world, including:
- During 2010–2013, agriculture, oil & gas, and automobile industries faced extreme weather conditions.
- Western Digital halted production in Thailand due to the Thai Flood in 2011, but they quickly recovered by executing detailed contingency plans and leveraging strong supplier relationships.
- Starbucks discovered their go-to coffee bean – Arabica – faces extinction by the end of the century due to climate change. To ensure a robust supply of coffee in the long term, the company developed a sustainable supply chain, a detailed sourcing strategy and a diversification plan.
Wal-Mart and Noble Energy’s business continuity plans helped them curb the impact of natural disasters on operations and, consequently, revenues. Case studies outline Wal-Mart’s response to Hurricane Sandy in 2012 and Noble Energy’s management of the Colorado Flooding in 2013.
Solutions to Mitigate Future Losses
The Smart Cube’s climate change research also outlines solutions governments and businesses should adopt to help mitigate losses and adapt to changing climates and natural disasters.
In addition, The Smart Cube offers a checklist that senior executives and decision makers can follow when natural disasters threaten their organizations and supply chains.