Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction

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The business case for
disaster risk reduction
A new wave of urbanisation is unfolding in hazard-exposed countries and
with it, new opportunities for resilient investment emerge. In India alone, the urban
population is expected to grow from 379 million in 2010 to 606 million in 2030 and
875 million in 2050. Private construction company Mori Building has
invested in earthquake resistant housing developments in Japan,
where earthquake resistance is the most important criteria for choosing new offices
for 92% of businesses (Chapter 8).
Tourism investment in small island developing states comes with
high levels of disaster risk – but also with large potential benefits
from investment in disaster risk management: 6 of the top 10
countries with the greatest proportion of assets at risk to cyclone wind
damage are small islands (Chapter 7). The competitiveness of these countries,
and businesses invested in them will depend on
effective disaster risk
management, through for example certification programmes and voluntary
rating systems (Chapter 9).
Current agribusiness practice feeds global food insecurity: Over 2
million hectares of land have been acquired through international
agribusiness investment in drought prone countries like Ethiopia
(Chapter 10). Commodity markets, bio-fuel production, increasing demand and
low stocks, can transform production shortfalls due to drought into
global food
price spikes, affecting low-income households, who buy most of the food they
consume. But new partnerships between small-holder farmers and businesses
show potential for a more resilient agriculture.
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