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Every year, natural hazards cause significant loss of life and erode gains in economic development. Nine in ten of the most commonly reported disasters are directly or indirectly related to weather or climate.


Vulnerability to disasters is increasing as more people inhabit high-risk areas. Since 1970, the world’s population has grown by 87%. At the same time, the proportion of people living in flood-prone river basins increased by 114% and on cyclone-exposed coastlines by 192%. Rapid urbanization and the growth of megacities will increase exposure to natural hazards. Climate change is expected to increase the frequency and intensity of the most severe weather-related hazards in the decades to come.


Energy systems are the engine of economic and social development. Their investments represent a sizeable portion of a country’s GDP. Indeed, energy is essential to practically all aspects of human welfare, including access to water, agricultural productivity, health care, education, job creation, and environmental sustainability.


Changing climates, especially extreme climate events, can have a far-reaching impact on the energy sector including infrastructure and supply chain. 


Year-to-year, climate variability has a large influence on agriculture, which is heavily dependent on rainfall, sunshine, and temperature. Climate change has introduced a new complicating factor into the food security equation, which is modifying natural climate variability.


At higher latitudes, some producers may benefit from a longer growing season, while others in arid and semi-arid areas will experience increased water shortages. Scientists expect an increase in the frequency and intensity of extreme events such as floods and droughts that will ultimately impact crops and livestock, and water quality and supply.


Tourism is one of the most weather-sensitive sectors. Hence, dealing with weather and climate risks is an integral part of operational risk management.


Climate shocks have immediate impacts on the hotel, restaurant, and travel industries, and may have long term impacts on infrastructure and other industries critical to sustainable tourism.