The report highlights how climate risks are beginning to spill over. Analysis shows a world split into three groups of countries based on their resilience to threats triggered by climate change, such as civil unrest, political instability, food insecurity, mass migration, and worsening human rights. Certain economic, societal, and political factors can help insulate nations against these threats. Managing climate change is a complicated undertaking. Yet in many ways, climate frameworks are too narrow and encourage a siloed view of what is a dense interconnected system of threats.
Focusing on the exposure of assets and investments to physical risks or shifts in emissions policy excludes the plethora of secondary political, economic, social, and supply chain risks that are emerging because of rising temperatures and the push towards a low carbon economy. Organisations must take a holistic view of Environmental, Social, and Governance (ESG) risks that encompass political threat multipliers like Russia’s war in Ukraine, economic drivers such as the changing face of global energy markets, and the growing human rights and ecological impacts of transition materials. Verisk Maplecroft's geospatial risk data and analysis brings to life some of these key emerging trends to make it crystal clear that companies, investors, and governments able to see the big picture, and act on it, will be best placed to deal with an increasingly uncertain future.