Extreme weather changes in the region have caused immeasurable damage to both infrastructure and lives, calling for immediate action to mitigate further damages.
Over the past two weeks, Southeast Asia has been devastated by Typhoon Yagi, one of the worst typhoons in decades which caused incalculable loss to the region. Nearly 300 people have been killed in Vietnam, and millions displaced by the destruction and cutoff from safe & clean water.
An estimated $7.69m is needed to give emergency relief to those affected in Vietnam, according to the International Federation of the Red Cross (IFRC). This is on top of the various other climate related disaster that had already been faced by the region, from extreme heatwaves, droughts, and floods.
There have already been more than 500 deaths across the region, especially in Vietnam, Myanmar & Thailand, but the damage was also felt in the Philippines, Laos, Singapore and Malaysia. Prolonged rain, flooding, strong winds left infrastructure damage all across the region.
Typhoons are a natural mechanism to transport heat from the tropics to poleward regions, and have been increasing in intensity due to the growing heatwave caused by climate change in recent years. Southeast Asia has always been highly vulnerable to climate change due to the dense population living along its many coastal lines, and is affected by extreme weather changes. Studies show that the intensity, duration, as well as velocity of the typhoons are expected to increase in the following years, which means potentially worse destruction to the region.
“Malaysia loses RM100m annually due to floods in the country, while Australia lost around A$4.4B as a result of the bushfires in recent years.”
This shows an urgent need for us to tackle climate change. The financial losses linked to climate disasters are expected to reach 11% of the region’s gross domestic product by year 2100. For example, Malaysia loses RM100m annually due to floods in the country, while Australia lost around A$4.4B as a result of the bushfires in recent years.
On top of potential financial losses, the region faces further risk of losing relevance in the global landscape if we fail to transition to sustainable practices soon. As major economies around the world are shifting their focus towards a more sustainable and ESG based approach, SEA needs to adopt sustainable solutions to stay relevant and increase its export to global markets.
“The opposite of risk isn’t inaction, but innovation that can maximize opportunities while having measures in place to face calculated risks.”
Better risk management is needed to take into consideration the impact of climate change, and how our operations impact the environment. We need to go beyond just focusing on the immediate financial risks, and take into consideration the long term environmental as well as social impact of businesses. A more holistic and coordinated look at risks instead of viewing them as independent or separate issues will help businesses better navigate the changing world paradigm.
Effective risk management should be a tool to help businesses make more informed decisions, rather than a set of limitations that only focuses on eliminating risks at all costs. Businesses can better weigh the risk vs opportunity costs of their decisions, have a better idea on the impact of their actions, and involve stakeholders in forming long term solutions that takes into consideration all factors and impact on society & environment. The opposite of risk isn’t inaction, but innovation that can maximize opportunities while having measures in place to face calculated risks.
“The key lies in transitioning towards the Circular Economy, which aims to regenerate natural resources and eliminate waste from the production cycle.”
While the impact of climate change has already been felt across SEA, it shouldn’t leave us feeling helpless and defeated. Together, we need to have better ESG policies & adopt sustainable approaches to reduce, and eventually reverse the impact of climate change in the region. Lean Giap Group believes that the key lies in transitioning towards the Circular Economy, which aims to regenerate natural resources and eliminate waste from the production cycle. By making investments into solutions and innovations that align with our vision, we believe that sustainable results that balances a triple bottom line of people, planet, profit can be achieved.
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