58% of businesses in emerging economies hit by extreme weather event – Report

About 58 percent of businesses in emerging economies in Africa and South Asia have suffered from the impact of flooding, storms, and drought over the last year, according to a recent report by British International Investment.

The accelerating pace of the climate emergency has been underlined by the report that shows that more businesses in emerging economies are being impacted by extreme weather events.

The 2022 Emerging Economies Climate Report by British International Investment, the UK’s development finance institution, showed that the number of businesses impacted by extreme weather events increased by 10 percent from 48 percent in the previous year to 58 percent this year.

Amal-Lee Amin, managing director, climate, gender & diversity and advisory, at British International Investment, speaking on the report said that the survey highlighted the significant impact that the climate emergency was already having on businesses, but also the increased steps that companies were taking to adapt their operations.

“Developing countries which are least responsible for causing climate change but among the most vulnerable to its impacts are already feeling the brunt of the climate crisis. And many people living in these regions are already being affected,” she said.

“This year we have seen severe droughts on both sides of the African continent, the persistent drought in Somalia for example demonstrates links between climate change and a humanitarian crisis, whereas extreme rainfall in South Africa and devastating floods in Pakistan have directly led to the loss of many lives,” she further said.

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“These increasing extreme weather events will expose millions of people to acute food and water insecurity in Africa and South Asia in the years to come. We need urgent climate action. Incremental improvements in sustainability will not get us to net-zero and resilient economies.”

She noted that it is encouraging that nearly half of the businesses reported that they are offering new climate-friendly products and a similar number are excluding investments that hurt the planet.

According to the findings of the report, 68 percent of respondents said climate change is affecting their business today, 40 percent of respondents have been impacted by flooding, and 25 percent have been affected by drought.

“More than half (56 percent) thought climate change will affect the viability of their business in the next five years, while 72 percent were concerned that climate change will impact plans to grow their business or investment portfolio over the next ten years,” the report states.

Also, the majority of the businesses surveyed agreed to some extent that organisations that take steps to reduce their carbon emissions and reduce vulnerability to physical climate change risks will be more successful in the long-term.

“92 percent agreed that better and more targeted investment is needed to reduce emissions and vulnerability.”