Businesses must do more to protect Asia’s cities from climate disaster

Asia is witnessing a multitude of catastrophic climate-related disasters, with many lives lost and billions of dollars of damage done to economies. We need only look at the devastating effects of Super Typhoon Haiyan last year or the massive floods that brought Thailand to a standstill in 2011 to see the punishing impact of extreme weather.

But, as many business leaders in Hong Kong and across Asia are realising, building climate resilience is not just an important preventative approach; it can also be an economic development strategy.

The Asian Development Bank estimates that the Asia-Pacific region suffers US$53.8 billion in losses annually from disasters. Climate scientists predict the frequency and severity of extreme weather events are set to accelerate. Such events lead to unforeseen costs on businesses and affect the growth, productivity and competitiveness of cities that fail to invest in climate mitigation schemes.

The economic and competitive advantages that accrue from climate resilience can only be realised through collective action. Businesses have a role to play.

While Hong Kong has so far been spared any visible impact, Typhoon Usagi's narrow miss last year should serve as a warning. Key industries are exposed to climate-related risks, including property, construction, financial services, manufacturing and supply chains, power generation and transport.

The Business Environment Council regularly conducts surveys on how businesses perceive climate change issues. In 2012, concerns about the rising cost of power, scarcity of environmental resources and business disruptions due to extreme weather rose sharply. Hong Kong is waking up to the new realities, but still only 6 per cent of those surveyed indicated they were very likely to invest in measures to minimise the risks of climate change to their company or supply chain.