What is Climate Impact and Climate Risk?
Climate Impact
Climate change is already having a significant effect on Canada and other parts of the world. Losses due to extreme weather (i.e., rain/flood, high wind, hail, wildland fire) having been growing at an alarming rate across the globe.
A recent study has projected that by the end of the century, the economic losses could be six times higher than previously estimated.
In another report published earlier this year by the Swiss Re Institute, it is predicted that with the current global warming trajectory, by 2050, the economic losses due to climate change could be up to 10% of the total global economic value.
The changing climate including increased frequency and intensity of extreme weather events and the creeping changes in climate parameters, forces consideration of potential changes over the long service life of assets and resources.
What is Climate Risk?
While sustainability addresses how to mitigate climate change using a reactive approach to what is already present, climate risk addresses the expected risks that are associated with the growing issue of climate change.
The knowledge of climate risks can be used proactively to help companies plan for expected risks that may impact their business or industry and help mitigate the issues climate change can cause.
In government, climate risk assessment will assist in developing policies to support businesses, industries, and people in their efforts to mitigate the risks due to climate change and it's impact.
Such skills enhancement requires the knowledge advancement aspect different from the traditional field of environment and sustainability.
