Managers, thinkers, opinion leaders and world scientists who collaborate with the World Economic Forum highlight in the top 10 global risks, 5 of climate origin, both in terms of probability and impact, as shown in the following image (in the same ranking are 2 related to cyber risks, and on these see article also in this issue).
We know there are deniers about the human impact on the Earth's climate, but no one can deny the evidence. Regardless of the real reasons, there is global warming, and our little rectangle by the sea is not escaping it.
July was the hottest month in the last 90 years in Portugal according to an IPMA report. The month of May had only 6 days with maximum temperatures within the normal range for the month; all the remaining days exceeded the normal maximums for May according to the IPMA report, as was also reported and highlighted by Swiss Re in an article last September.
Among other worrying effects, this Reinsurer, draws attention to the following correlation:
Between 22 June and 21 August 2020, there were 7 major industrial fires, when since the beginning of the year only 1 had occurred:
- TUPAI - Metalomechanics (Águeda) 21-8-2020
- LQL - Footwear, (Vilela) 14-8-2020
- Castelo de Paiva Industrial Complex, 13-7-2020
- CELTEJO - Cellulose (Vila Velha de Rodão) 6-7-2020
- INDUPAL - Cotton Pulp (Castanheira de Pera) 1-7-2020
- ZARRINES - Paper and Cardboard (Sta Mª Feira) 30-6-2020
- ADA WIRES - Textile (Sto.Tirso) 22-6-2020
Between Jan and Jun, only 1:
- ENERGIE - Solar panels (Póvoa Varzim) 26-2-2020
"It is nonetheless surprising that so many fires are occurring again, which appear accumulated in summer months. This had happened in 2017, during the major forest fires of June and October.
The severity of these risks hits reinsurance capacities while their higher frequency could put pressure on the solvency level of insurers.
Very recently the Coimbra Higher Institute of Engineering (ISEC) presented a study indicating that 63% of the Portuguese industrial estates present a high risk of fire because they are located close to the forest. "*
The management of industrial risks begins with the decisions and actions of the Industries, and no matter how much a broker may want to support the optimal transfer of risks to insurers, a 100% transfer is not possible. The co-responsibility of the Managers in prevention and mitigation starts more and more downstream (and goes more and more upstream...), in the strategic decisions facing the climate uncertainties and obviously also in the impact of their Industries and their products on the environment.
Let us now reflect on the impact of each industry and its products on the environment. It is increasingly clear that we all - organisations and individuals - have an influence on our daily decisions (on what and how we produce, what we consume, what we dispose of) and that it will be the sum of small conscious steps that will make a difference in the sustainability of the global ecosystem.
*Source: António Rito Batallha_ Swiss Re, in Eco, 6 Sep20
