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MGI-Climate-risk-and-response-Executive-summary-vF

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MGI-Climate-risk-and-response-Executive-summary-vF

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vF founding in 1990. the McKinsey Global Institute (MG I) has sought to develop a deeper understanding ol the evolving global economy. As the business a

nd economics research arm ol McKinsey & Company, MGI aims to provide leaders in the commercial, public, and social sectors with lhe laclsand insights MGI-Climate-risk-and-response-Executive-summary-vF

on which Io base management and policy decisions.MGI research combines the disciplines ol economics and management, employing the analytical tools of

MGI-Climate-risk-and-response-Executive-summary-vF

economics with the insights of business loaders. Our •micro-to-macro* methodology examines microeconomic industry trends to better understand the broa

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vFrrent research focuses on six themes: productivity and growth, natural resources, labor markets, the evolution of global financial markets, the econom

ic impact of technology andinnovation, and urbanization. Recent reports have assessed the digital economy, the impact ol Al and automation on employme MGI-Climate-risk-and-response-Executive-summary-vF

nt, income inequality, the productivity puzzle, the economic benefits of tackling gender inequality, a new era of global competition, (Chinese innoval

MGI-Climate-risk-and-response-Executive-summary-vF

ion, and digital and financial gk>bali/alion.MGI is led by three McKinsey & Company senior (>artriers: James Manyika, Sven Smit, and Jonathan Woel/el.

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vF ilman Tacke are MGI partners, and Mekala Krishnan IS an MGI senior fellow.Project teams are led by the MGI partnersand a group of senior fellows and

include consultants from McKinsey offices around the world. These teams draw on McKinsey's global network ofpartners and industry and management exper MGI-Climate-risk-and-response-Executive-summary-vF

ts. The MGI Council is made up of leaders from McKinsey offices around lire world and ttie firm’s sector practices and includes Michael Hirsiian, Andr

MGI-Climate-risk-and-response-Executive-summary-vF

és Cadena. Sandrinc Dcvillard. André Dua. Kweilin Cllingrud, larek Hinasry, Kaly Gerxge, Rajal Gupta, Hie Ha/an, Acha I eke, Gary Pinkos, Oliver Tonby

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vFnd lhe world. In addition, leading economists, including Nobel laureates, advise MGI research.The partners of McKinsey fund MGI's research: it is not

commissioned by any business, government, or other institution. For further information about MGI and to download reports for free, please visit www.m MGI-Climate-risk-and-response-Executive-summary-vF

ckinsey.com/mgi.In collaboration with McKinsey & Company's Sustainability and Global Risk praclicicsMcKinsey & Company’s Sustainability Practice helps

MGI-Climate-risk-and-response-Executive-summary-vF

businesses and governments reduce risk, manage disruption, arxl capture oppor tunities in the transition to a low-carbon, sustainable-growth economy.

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vF business functions from strategy and risk to operations and digilal technology. Our proprietary research and tech-enabled tools provide the rigorous

fact base that business loaders and government policy makers need load boldly with confidence. The result: cut ting-edge solutions that drive business MGI-Climate-risk-and-response-Executive-summary-vF

-modeladvancesand enable lasting performance improvements for new players and incumbents alike.WWW. mckinsey.corn/sust a ina bililyMcKinsey & Company'

MGI-Climate-risk-and-response-Executive-summary-vF

s Global Risk Practice partners with clients logo tieyond managing risk Io enhancing resilience and creating value. Organizations today face unprecede

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vF evolving model and data risk: external shifts such as unpredictable geopolitical environmentsand climate change; and an evolving reputational risklan

dscape accelerated and amplified by social media. We apply deep technical expertise, extensive industry insights, and innovative analytical approaches MGI-Climate-risk-and-response-Executive-summary-vF

Io help organizations build risk capabilities and assets across a full range of risk areas. I tiese include financial risk, capital anti balance shee

MGI-Climate-risk-and-response-Executive-summary-vF

l related risk, nonfinancial risks (including cyber, data privacy, conduct risk, and financial crime), compliance and controls, enterprise risk manage

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

MGI-Climate-risk-and-response-Executive-summary-vF tie use ol advanced analytics. www.mckinsey.com/ busincss-functions/riskAuthorsJonathan WoeUet, ShanghaiDkrkon Pinner. San r rancncoI lamd Sainandari

, New YorkI lauke Engel, rrankíur IMcknlft Krishnan, BostonBrodin Botaod, Washington, DCCarter Bowls, loeontoClimate risk and responsePhysical hazards MGI-Climate-risk-and-response-Executive-summary-vF

and socioeconomic impacts2600528Preface

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

McKinseyGlobal InstituteExocutivo summaryClimate riskand responsePhysical hazards and socioeconomic impacts■ I ' 'WMcKinsey Global InstituteSince its

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