It’s time to embrace an adaptation mindset when it comes to the climate-crisis, according to experts from AXA XL.
Summer 2021 was the “summer that changed everything”, according to Nicolas Saint-Bris, head of partnerships, AXA Climate.
The devastating floods in Germany and China, wildfires around the world and heat waves were a wake up call that the climate is changing and we should anticipate more weather extremes going forward.
A temperature rise of at least 1.5 degrees is now inevitable - and some parts of the world will experience much greater rises than this global average - in particular the colder regions.
Further, in an interconnected world, extreme events can ripple through supply chains in ways that cannot always be anticipated.
The Texas freeze is one such example, explained Saint-Bris. By impacting gas production infrastructure, which was not sufficiently winterised, this in turn impacted plastic production and motor manufacturing.
Speaking during a session titled ‘From Paris to Glasgow’ at the Airmic Conference 2021 in Brighton, they explained there were two essential pillars to such a mindset: understanding and action.
The insurance industry has a clear role to play in supporting and driving the transition to zero carbon, by integrating ESG criteria into pricing.
“It is a question we have to answer as [an insurance] community,” said Saint-Bris. “This is how we push for massive transformation.”
While the effects of climate change can feel bleak, there is a real opportunity as economies and businesses transition over the next four years.
“Change is scary, but it is also a real opportunity,” concluded Isa Ennadifi, London market leader at AXA Climate.
Blog: Airmic Conference 2021 Daily News Summary
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Airmic 2021: Embrace an adaptation mindset