A report by Deloitte has shown that Climate change could cost the global economy a whopping $178 trillion over the next 50 years, or a 7.6 per cent cut to the global gross domestic product in 2070, if left unchecked.
Deloitte’s Global Turning Point Report, which analysed 15 regions in the Asia-Pacific, Europe and the Americas, warned that If global warming reaches about 3°C above pre-industrial levels towards the end of the century, the toll on human lives could be “significant”, disproportionately affecting the most vulnerable.
It further warned that the situation will also lead to loss of productivity and employment, food and water scarcity, worsening health and well-being and bringing about a lower standard of living globally.
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The report however stated that if global leaders unite in a systemic net-zero transition by 2050 and meet the Paris Agreement goal to limit warming as close to 1.5°C above pre-industrial levels by as much as possible, the global economy could gain $43tn in the next 50 years, giving global GDP a 3.8 per cent boost in 2070, the report found.
Mutasem Dajani, chief executive of Deloitte Middle East said that the numbers speak for themselves and businesses should be reimagining their practices to help build a more sustainable future for all.
“Taking small steps in the right direction will pay dividends in the future. It has become clear that if businesses do not prioritise sustainability and understand the impact they are having on the environment, valuable talent, revenue and market share may be lost,” he said.
According to reports, business leaders areal ready to recognise the importance of the issue — 89 per cent of executive-level managers surveyed by Deloitte agree there is a “global climate emergency” while 79 per cent currently see the world at a tipping point for responding to climate change.
However, transforming the economy for a low-carbon future will require “extensive coordination and global collaboration throughout industries and geographies”, the report said.
Story was adapted from the National news.
