The Strategist

Australian business expects damage from climate change

01/21/2020 - 09:16

81% of Australian business leaders believe that climate change will harm their company, a survey by Deloitte showed. This is the highest figure among 19 countries covered by the study, Reuters reports.

bertknot via flickr
bertknot via flickr
The proportion of business leaders fearing the effects of climate change in Australia is significantly higher than the global average (48%).

“Companies must demonstrate to investors that they are taking appropriate steps to reduce their exposure to risk,” said Robert Hillard, director of strategy and innovation at Deloitte Australia.

For several months, Australia fought fires along the entire east coast of the country, killing 29 people and millions of animals, destroyed more than 2,500 houses and burned out an area of about one third of Germany’s area. Forest fires are common in Australia, but this time the season began much earlier than usual.

Australian Prime Minister Scott Morrison has been criticized for his government’s handling of the crisis. On Monday, Morrison increased emergency funding for small businesses affected by forest fires. Meanwhile, rising costs caused by fires cast doubt on the government’s ability to deliver the promised budget surplus.

According to estimates of Westpac Bank, one of the largest in Australia, the direct losses of the economy from forest fires will amount to $ 3.5 billion, or 0.2-0.5% of the country's economic growth.