From vulnerability to resilience: grappling with socioeconomic climate risks

?? What drives more people from their homes than war or violence? The answer: climate change. In 2022, 32.6 million were internally displaced by floods, droughts, and other disasters, a 45% rise from the previous year.

• The effects of these extreme events extend far beyond the physical realm. In South Sudan or Afghanistan, drought-induced food insecurity has triggered conflicts and persecution. And in the Sahel, a region with pronounced political instability, “temperatures are rising 1.5 times faster than the global average”, warns Celine SCHMITT , Head of External Relations & Spokesperson at the UNHCR, the UN Refugee Agency , in the latest issue of Perspectives .
• In fact, food insecurity is one of the largest climate-born threats hanging over our heads. Rising temperatures and unpredictable weather are wreaking havoc on crops and livestock, hitting small farmers, who provide half of the world’s calories, the hardest. What’s more, the effects of such climate events can sometimes be felt on the other side of the planet: “El Ni?o contributed to significant rainfall pattern disruptions in Asia, where most rice production occurs, quickly translating to global price pressure from late 2022”, recounts Sumati Semavoine-Jain , Sustainability Research Analyst at BNP Paribas CIB . This, in turn, severely affected several African countries where Asian-imported rice is a dietary staple.
• Addressing these threats requires a combination of mitigation and adaptation, two strategies too often pitted against one another. While mitigation tends to hog the spotlight, adaptation will prove key to protecting vulnerable communities.

• Thankfully, many adaptation strategies are within our reach: “We already have several tools needed to tackle erosion, restore ecosystems, prevent fires and floods, and adapt infrastructures”, writes Nathalie Jaubert , Deputy Head of CSR at BNP Paribas. Better news even: all over the world, states are slowly rolling out national adaptation plans.
• Yet significant hurdles remain, starting with building more comprehensive regulatory approaches, such as the ones in place for mitigation. While companies have long been pressured to cut their CO2 emissions, obligations remain less mature in adaptation, despite allusions to adaptation exposure reporting in frameworks like the IFRS and ISSB, say Sophie Prugnard de La Chaise , Director, Head of Sustainable Business Development Plan, Company Engagement Group, at BNP Paribas and Dr. Ralf Lütz , Senior Advisor, Sustainable Advisory & Business, at BNP Paribas CIB.
• In fact, lacking regulatory frameworks are cited by private actors as one of the key obstacles to increased adaptation investments: in a recent World Economic Forum survey, 50% of companies mentioned the absence of a conducive policy and regulatory landscape as a major barrier to action.
• Another key lever for minimising the socioeconomic effects of climate change? The adoption by companies of adaptation plans. “Insurance companies, at the forefront on this topic, followed by banks and asset managers, can play a key role in initiating these plans by embedding them in risk assessments and business continuity frameworks”, write Sophie Prugnard de la Chaise and Ralf Lütz.
• One thing is clear:? in adaptation as in all other areas of the green transition, success will hinge on our ability to join forces, ensuring public authorities and private actors work hand in hand to ensure a safer future for all.

?? Is Latin America about to write the next chapter of its sustainability history?

• For Florence Pourchet , CEO of CIB Latin America at BNP Paribas, the answer is a resounding “yes”. Expect significant advances in the areas of renewable energy development, social justice and inclusion, and sustainable agriculture.
• “We will see more sophisticated forms of sustainable investment, differentiating the region from Europe, North America and Asia-Pacific,” writes Pourchet. Dig into her predictions for the region there ??

?? In 2021, 1.4 billion people remained excluded from mainstream bank services. The solution? Microfinance.

• Behind every successful microfinance project is a banker committed to supporting low-income entrepreneurs . At BNP Paribas CIB, some members of the financial institutions coverage and corporate coverage team are dedicating time and energy to financing Microfinance Institutions (MFIs) that are actively building more resilient communities and financially empowering women on the ground.
• Come along behind the scenes to meet our microfinance partners around the world, from Brazil and Indonesia to the Netherlands, and see the change Siti Parani , Philip Cornelisse and Priscilla Arruta effect every day.

?? A 450-million-year old species is in danger. And it’s on us to save it.

• For years, horseshoe crab blood has been used by the pharmaceutical industry to run toxic tests designed to protect humans from endotoxins. But, as the species has become endangered and populations are fast declining, this choice no longer makes sense – especially as alternatives now exist.
• That is why BNP Paribas Asset Management has joined forces with major players in the industry to push for the use of a synthetic equivalent to horseshoe crab blood, recombinant factor C. Read on to find out more about the horseshoe crab and what we can do to save it ??

??? Solar Impulse is about to embark on a historic journey.

• At a time when ecoanxiety is reaching new heights, restoring hope is of the essence. And that is exactly what the Solar Impulse Foundation , a BNP Paribas partner, is setting out to do with a stunning new venture.
• Ecology pioneer Bertrand Piccard will undertake the first zero-emission non-stop round-the-world flight by 2028 , thanks to a revolutionary green-hydrogen-fuelled aeroplane. A once in a lifetime adventure and a symbol of how far we can go in creating a cleaner, more efficient world. Watch to find out more ??