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As wildfire season nears, has your company factored in climate risk?

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: As wildfire seasons lengthen globally, businesses are urged to reassess their exposure to climate-related risks
• Companies like Pacific Gas and Electric have already faced dire financial repercussions due to their underestimation of these risks, highlighting the importance of proactive measures in business strategies

🔭 The context: Research by Carles Vergara at IESE Business School indicates that real estate markets, particularly in California, are already experiencing increased insurance premiums due to higher wildfire risks
• This challenges insurance companies to reconsider their pricing strategies to manage potential losses effectively

🌍 Why it matters for the planet: The intensification of extreme weather events like wildfires reflects broader environmental changes that are influencing global economic structures
• These changes demand significant adjustments in how businesses operate and insure properties, impacting sustainability and resilience

⏭️ What's next: Businesses are advised to adapt by reassessing risk exposure, reconfiguring strategies, making pragmatic changes to mitigate risks, and considering long-term repercussions
These steps are critical for companies to survive and thrive in an era of increasing climate volatility

💬 One quote: "It’s crucial that companies stop treating these events as rare and start considering them in their business decisions – otherwise, they run the risk of facing negative consequences." - Carles Vergara, IESE Business School

📈 One stat: Natural disasters in 2023 alone resulted in economic losses totaling approximately USD 380 billion, highlighting the severe financial implications for businesses not adequately prepared for such events​

Click for more news covering the latest on environmental sustainability

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