ESG M02 C02E

Summary

This video discusses critical environmental issues that businesses impact, as highlighted in the 2024 World Economic Forum's Global Risk Report. Key issues include climate change, resource depletion, biodiversity loss, and pollution. The video explains how climate change, driven by human activities, leads to extreme weather events, while resource depletion, such as deforestation and water scarcity, disrupts business operations. It also highlights the rapid loss of biodiversity and its effects on ecosystems and industries. Lastly, pollution's widespread impact on health and the environment is addressed, stressing the urgent need for sustainable business practices.

Takeaways

• 😀 Climate change is the most pressing environmental issue facing humanity, with human activities like burning fossil fuels intensifying the greenhouse effect and global warming.
• 🌍 Weather refers to day-to-day atmospheric conditions, while climate is the long-term pattern of weather over a period of at least 30 years.
• 🔥 Global warming is driving extreme weather events, including heat waves, wildfires, droughts, and flooding, which are becoming more frequent and severe.
• 🌡️ The concentration of CO2 in the atmosphere has risen dramatically, from 280 PPM before the Industrial Revolution to over 420 PPM today, leading to a rise of approximately 1.2°C in global temperatures.
• 🚨 Resource depletion is a growing concern, with increasing demand for finite resources like water, forests, minerals, and fossil fuels, driven by population growth and industrialization.
• 🌱 Natural resources, both renewable and non-renewable, are under significant stress due to human activities such as deforestation, over-extraction of groundwater, and mining.
• 💧 Depletion of vital resources like water, timber, and fossil fuels is causing supply chain disruptions, operational challenges, and increased production costs for businesses.
• 🐾 Biodiversity loss, driven by habitat destruction, climate change, overfishing, and pollution, is causing species extinction at an alarming rate and is disrupting ecosystems.
• ⚠️ Loss of biodiversity affects business operations by threatening raw material availability, reducing innovation opportunities, and increasing operational risks.
• 🌍 Pollution, including air, water, and plastic pollution, has severe consequences for both ecosystems and human health, with specific cases in India highlighting ongoing environmental challenges.
• 🌿 Businesses must address their role in environmental degradation by adopting sustainable practices, or face reputational damage, legal risks, and increased costs due to environmental impacts.

Q & A

What are the five environmental risks highlighted in the 2024 Global Risk Report?

The five environmental risks highlighted in the 2024 Global Risk Report include climate change, resource depletion, pollution, biodiversity loss, and other critical environmental issues that businesses are contributing to.

What is the difference between weather and climate?

Weather refers to short-term atmospheric conditions like temperature, humidity, and precipitation, whereas climate is the long-term average of weather patterns over a specific region, typically measured over 30 years.

What is the greenhouse effect and how does it contribute to global warming?

The greenhouse effect is a natural process where certain gases, like carbon dioxide, methane, and nitrous oxide, trap heat in the atmosphere, keeping Earth's temperature at a level that supports life. However, human activities have increased the concentration of these gases, leading to an enhanced greenhouse effect and global warming.

How much has the concentration of CO2 in the atmosphere increased since the Industrial Revolution?

Before the Industrial Revolution, the concentration of CO2 in the atmosphere was around 280 parts per million (PPM), but it has now risen to over 420 PPM, a level not seen in millions of years.

What are some of the immediate effects of climate change that are being observed today?

Some of the immediate effects of climate change include more frequent and intense extreme weather events like heat waves, cold waves, droughts, floods, cyclones, wildfires, and rising sea levels.

What are the primary causes of resource depletion, and how does it affect businesses?

Resource depletion is driven by factors like population growth, industrialization, and unsustainable consumption. It affects businesses by increasing the costs of raw materials, causing supply chain disruptions, creating operational challenges, and leading to regulatory burdens.

How does deforestation contribute to resource depletion and impact businesses?

Deforestation depletes forests, which provide essential products like timber and regulate ecosystems. The loss of forests also impacts biodiversity, climate regulation, and water cycles, affecting industries that depend on these resources.

What are the main causes of biodiversity loss?

Biodiversity loss is driven by habitat destruction, deforestation, land conversion for urban development, industrialization, climate change, overfishing, and wildlife exploitation.

How can biodiversity loss affect businesses?

Biodiversity loss can disrupt supply chains, limit the discovery of new medicines and foods, increase operational risks, and harm a company's reputation, leading to decreased customer loyalty and potential legal consequences.

What are some specific pollution-related issues in India mentioned in the script?

Specific pollution-related issues in India include severe air pollution, Ganga River pollution, coastal pollution in Mumbai, and plastic pollution in Kerala, all of which have significant environmental and public health consequences.