In May 2023, the Government released its first National Risk Profile (NRP) providing a comprehensive overview of Canada's top disaster risks. This inaugural report delves into key areas such as earthquakes, wildland fires, floods, and pandemics, offering invaluable insights to inform your risk management strategies and enhance your ESG materiality assessments.
- Increasing Disasters and Climate Change Impact: The NRP reveals a significant rise in the number and scale of disasters in Canada over the past 25 years. Floods, in particular, have emerged as the most costly and frequent hazard, with #climatechange expected to intensify their severity and frequency. The report also underscores the steady increase in insured losses from catastrophic events, primarily due to water-related damage. It further projects rising direct and indirect economic losses from disasters and climate change.
- Costliest Hazards: According to the NRP, earthquakes, wildland fires, and floods are the most financially impactful hazards in Canada. These events have far-reaching consequences for the economy, society, and the environment, with costs continuously on the rise.
- Flood Risk Assessment and Management: With floods being Canada's most frequent and costly hazard, the NRP evaluates disaster risks and identifies capability gaps in the country's emergency management system. The report aims to raise public awareness about disaster risk and lend support to existing federal risk assessment and climate change adaptation efforts. It emphasizes the importance of collaboration across all sectors of society and effective governance for bolstering disaster resilience.
- Earthquake Vulnerability: The NRP highlights the significant risk posed by earthquakes, particularly in British Columbia's coast and the North Eastern Québec region (Charlevoix). Over 40% of Canadians reside in moderate or high-risk seismic hazard zones. Population growth, urbanization, and infrastructure reliance contribute to the escalating risks.
- Heightened Wildland Fire Activity: Climate change has fueled more intense and frequent wildland fires in Canada. Since the 1970s, the annual area burned by these fires has more than doubled, underscoring the urgent need for robust risk management strategies.
- Impacts of Disasters: Disasters impose heavy financial burdens, disrupt businesses, compromise transportation networks, and inflict damage on critical infrastructure. It is crucial for organizations to prepare for and mitigate these effects.
- Resilience Gaps: The NRP identifies several gaps in Canada's resilience to earthquakes, wildland fires, floods, and pandemics. These include inadequate seismic retrofit programs, low public awareness and preventative action, limited flood risk information, and insufficient coordination among different levels of government.
- Pandemic Considerations: While the NRP primarily focuses on earthquakes, wildland fires, and floods, it incorporates the risk of pandemics due to the profound impact of COVID-19 on all aspects of society. The report highlights the importance of health equity, addressing pre-existing social and economic inequities, and ensuring the well-being of vulnerable populations, including Indigenous peoples and low-income households, in future pandemic responses.
- Future assessments: In the future, the National Risk Profile (NRP) will assess risks related to extreme heat events, hurricanes, and space weather. In addition to natural hazards (coastal erosion, droughts, tsunamis, etc.), future rounds of the NRP may also assess non-malicious threats (such as industrial leaks, transportation accidents or infrastructure failures, etc.) and malicious threats (such as cyberterrorism, biological or nuclear attacks, etc.). However, the decision on which hazards to assess will depend on resource allocation.
- Indigenous Perspectives:?The report also explores disaster risks and responses from Indigenous perspectives, recognizing the unique challenges and knowledge held by Indigenous communities.
- Policy Solutions and Funding: it is also important to note that the NRP does not propose specific policy solutions nor include any proposed funding. However, it offers a vital foundation for informed decision-making and prioritization of resources.
I encourage you to thoroughly explore the National Risk Profile to gain a comprehensive understanding of Canada's disaster risks and capability gaps. By leveraging the insights and recommendations provided, you can strengthen your organization's preparedness and response capabilities and enhance your ESG materiality risk assessments.
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