The Economist Group

The globalization of climate change: amplification of climate-related physical risks through input-output linkages

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Mardi, mai 28, 2024

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To address this shortcoming, this paper for the first

Key Points:

To address this shortcoming, this paper for the first
time combines country-level GDP losses due to climate-related physical risks with a global Input-Output
model.
More specifically, climate-related GDP-at-risk data are used to quantify the potential direct
impact of physical risks on GDP at the country or regional level.
JEL Classification: E01, Q54, Q56, F18
Keywords: Supply chains, physical risk, climate change
ECB Working Paper Series No 2942

1

Non-technical summary
The estimation of real-economic damages due to climate change physical risks remains an important
challenge in the face of global warming.
Many economic models make significant simplifications on
the channels of transmission of climate physical risks across the globe, often giving the impression that
the risks for the Euro Area will be relatively small.
In particular, the role of global supply chains in the
transmission and potential amplification of climate related physical risks has received little attention.
This is relevant because climatologists predict that direct impacts from climate change-induced natural
disasters will materialize mainly outside the Euro Area.
Understanding potential real economy losses would also contribute to better portray the risks which
could spill over into the financial system.
Introduction
Recent estimates of real-economic damages due to climate change physical risks do not appear
incredibly worrying, not at least those for European countries.
The ECB climate stress test of 2022 also finds relatively little impact from physical risks.
Nordhaus? seminal 1991 paper was one of
the first to estimate the effect of climate change on economic output (Nordhaus, 1991).
Second, our paper relates to the literature that has started to analyse the transmission of climate risks
across borders.
In this strand, however, the focus remains mostly on transition risks (Devulder & Lisack,
2020, Frankovic, 2022, Krivorotov, 2022).
Third, we connect to the literature on the study of the propagation of climate physical risks across
borders, which remains underdeveloped.
To
our knowledge this paper is the first to apply IO modelling with physical risks on a global scale.
However, the authors use a general equilibrium modelling approach and estimate
how sectoral changes in productivity due to physical climate risks affect a global, multisectoral,
intertemporal general equilibrium model.
This paper aims at making economic impact assessments of climate change more realistic by
incorporating a key element of globalization.
More specifically, this paper is the first to analyse the
transmission of GDP losses from climate change related physical risks through global country-sector
input-output linkages.
), this paper makes a first important step towards getting a more realistic
picture of the risks arising from climate change.
The natural hazards
influenced by climate change are many and include floods and inundations, droughts, heatwaves,
windstorms, and wildfires.
Importantly, physical risks do not only have a direct impact on the economy, as cascading or amplifying
effects are also possible through input-output linkages.
In general, the global economy is exposed to physical risks which generate GDP losses.
Specifically, SPGlobal GDP-at-risk data are used to quantify the potential
direct impact of physical risks on GDP at the country level.
This is done to account
for the fact that the realization of physical risks from climate change reduces both domestic final demand
and production capacity (Feng and Li, 2021).
Figure 2: GDP at risk from climate change-related physical risks, RCP 8.5 scenario
Source: SP Global and ECB
3.3 Modelling climate shocks
The IO tables system is initially in equilibrium.
ECB Working Paper Series No 2942
21

Figure 4: GDP-at-risk resulting from IO amplification of physical risks under the RCP 8.5 scenario.
ECB Working Paper Series No 2942
22

Figure 5: GDP-at-risk resulting from IO amplification of physical risks under the RCP 8.5 scenario.
However, not analysing the amplification of climate risks through supply chains for
lack of data could lead to a large underestimation of the risks posed by climate change for economic and
financial stability.
Adams, K. M., Benzie, M. & Croft, S. Climate change, trade, and global food security: a global
assessment of transboundary climate risks in agricultural commodity flows.
In this sense, the
exposure to physical risks of direct trading partners is a limited indicator for the amplification of losses
through global value chains.

The Economist Group appoints Luke Bradley-Jones President, The Economist

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Lundi, février 26, 2024

Acquisition, Thomson Reuters, The Economist Group, BBC Worldwide, Journalism, EIU, Intelligence, History, Finance, Economist, London Stock Exchange Group, Software

LONDON, Feb. 26, 2024 /PRNewswire/ -- The Economist Group today announced the appointments of two senior leadership roles. Luke Bradley-Jones, Disney+ General Manager of EMEA, has been named President and Managing Director of The Economist. Mr Bradley-Jones will continue to accelerate The Economist's digital evolution. He will be based in London and will also have a significant presence in The Economist's New York office. He will assume the role of president this summer.

Key Points:

Luke Bradley-Jones, Disney+ General Manager of EMEA, has been named President and Managing Director of The Economist.
Leon Saunders Calvert will serve as the new President and Managing Director of Economist Intelligence, the business information arm of The Economist Group.
Both Mr Bradley-Jones and Mr Saunders Calvert will report directly to Lara Boro, chief executive of The Economist Group.
"I'm delighted to welcome these outstanding industry leaders to The Economist Group," said Ms Boro.

Documentary "Neu Earth" Screening Conference Held in Beijing

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Vendredi, janvier 5, 2024

Beijing, China--(Newsfile Corp. - January 4, 2024) - On December 27, 2023, the "Neu Earth" Screening Conference was held in Beijing by China Intercontinental Communication Center (CIC), and supported by the BRI International Green Development Coalition (BRIGC).

Key Points:

Beijing, China--(Newsfile Corp. - January 4, 2024) - On December 27, 2023, the "Neu Earth" Screening Conference was held in Beijing by China Intercontinental Communication Center (CIC), and supported by the BRI International Green Development Coalition (BRIGC).
Cui Binzhen mentioned that with the support of the Chinese Academy of Sciences and the BRIGC, CICC has worked with international organizations co-produced a documentary series "Neu Earth".
The series was filmed in a wide range of areas, including Asia, America, Oceania, Europe and other regions.
In the future, CICC will work closely with domestic and foreign organizations to tell more green-themed stories worldwide.

Britain falls from top spot in Economist Impact's latest Health Inclusivity Index

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Lundi, novembre 20, 2023

Low, Policy, Health policy, Risk, LSE, Trust, Index, Health, Community, Mental health, HLN, Generation Z, Economist, The Economist Group, Travel, Pharmaceutical industry, Nursing, Risk management, Haleon

LONDON, Nov. 20, 2023 /PRNewswire/ -- Economist Impact, an arm of The Economist Group that works with organisations globally to further their missions, today launched phase two of the Health Inclusivity Index, supported by Haleon (LSE / NYSE: HLN), a global leader in consumer health. This phase's results show health inclusivity falling worldwide, and notably Britain falling from its top spot in phase one.

Key Points:

This phase's results show health inclusivity falling worldwide, and notably Britain falling from its top spot in phase one.
The index measures health inclusivity, which is defined as the process of removing personal, social, cultural and political barriers that prevent individuals and communities from experiencing good physical and mental health.
The phase 2 Health Inclusivity Index's key findings include:
85% of countries' inclusivity scores deteriorated between phase 1 and phase 2, showing there is a clear gap between policy and implementation.
That's why we are pleased to add the lived-experience indicators to Economist Impact's Health Inclusivity Index.

Economist Impact's Groundbreaking "Innovation Quotient" Programme Offers Blueprint for Innovation for Progress

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Mercredi, octobre 25, 2023

Quotient, Capacity building, Incubator, Policy, Education, Innovation, Automation, The Economist Group, Workforce, Research, Multimedia, Philip Morris International, Environment, Ecosystem, EOG, Creative industries, Renewable energy, Management

LONDON, Oct. 25, 2023 /PRNewswire/ -- There is urgent need for responsible innovation to tackle unprecedented geopolitical, environmental, socioeconomic challenges. Addressing these requires bold ideas and new ways of working. To help countries build the right enabling ecosystems for innovation, Economist Impact, an arm of The Economist Group, developed the Innovation Quotient, an independent research programme, supported by Philip Morris International, uniquely designed to foster innovation for socioeconomic progress.

Key Points:

To help countries build the right enabling ecosystems for innovation, Economist Impact, an arm of The Economist Group, developed the Innovation Quotient, an independent research programme, supported by Philip Morris International, uniquely designed to foster innovation for socioeconomic progress.
Economist Impact, with input from an advisory board of experts, identified 122 metrics that invigorate or impede a nation's efforts to accelerate innovation.
"With its explicit focus on socioeconomic progress, Economist Impact's Innovation Quotient redefines successful innovation enablement," said Vaibhav Sahgal, Economist Impact's Principal, New Globalisation and Project Director of the Innovation Quotient.
The Innovation Quotient research revealed several best practices which policy makers, business leaders and citizens can adopt to accelerate innovation for progress.

American BioCarbon Presents at Economist Impact’s Countdown to COP28

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Vendredi, octobre 6, 2023

American BioCarbon, a pioneering manufacturer of sustainable products derived from sugarcane bagasse, was among a select group of distinguished U.S. and international leaders invited to share their expertise at Economist Impact's 3rd annual Sustainability Week: Countdown to COP28 conference.

Key Points:

American BioCarbon, a pioneering manufacturer of sustainable products derived from sugarcane bagasse, was among a select group of distinguished U.S. and international leaders invited to share their expertise at Economist Impact's 3rd annual Sustainability Week: Countdown to COP28 conference.
Economist Impact is part of The Economist Group, a global media company which specializes in international business and world affairs information.
American BioCarbon was selected to participate in the panel discussion because of its unique carbon sequestration products, specifically bagasse biochar.
In addition to renewable bioproducts, American BioCarbon is certified to sell digital tradable assets called CO2 Removal Certificates (CORCs) through a marketing agreement with Puro.earth.

Economist Impact and Infosys launch the Value Chain Navigator to help businesses manage and mitigate their scope 3 emissions

Retrieved on:

Jeudi, octobre 5, 2023

LONDON, Oct. 5, 2023 /PRNewswire/ -- Economist Impact, an arm of The Economist Group that works with organisations globally to further their missions, and Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services, today announced the launch of the Value Chain Navigator (VCN) to help businesses understand and address their scope 3 emissions.

Key Points:

Scope 3 includes all indirect emissions that occur in the upstream and downstream activities of an organisation's value chain.
Up to 95% of a business's carbon footprint consists of scope 3 emissions, but only a quarter of businesses account for them in their net zero plans.
Technological innovations can help businesses monitor, manage and reduce emissions in their upstream and downstream value chains.
Our work with Infosys to create The Sustainability Project and now, the Value Chain Navigator, exemplifies the impact we can make in the world."

Economist Impact and Infosys Launch the Value Chain Navigator to Help Businesses Manage and Mitigate their Scope 3 Emissions

Retrieved on:

Jeudi, octobre 5, 2023

Scope 3 includes all indirect emissions that occur in the upstream and downstream activities of an organisation's value chain.

Key Points:

Scope 3 includes all indirect emissions that occur in the upstream and downstream activities of an organisation's value chain.
Up to 95% of a business's carbon footprint consists of scope 3 emissions, but only a quarter of businesses account for them in their net zero plans.
Technological innovations can help businesses monitor, manage and reduce emissions in their upstream and downstream value chains.
Our work with Infosys to create The Sustainability Project and now, the Value Chain Navigator, exemplifies the impact we can make in the world."

Economist Impact and Infosys Launch the Value Chain Navigator to Help Businesses Manage and Mitigate their Scope 3 Emissions

Retrieved on:

Jeudi, octobre 5, 2023

Scope 3 includes all indirect emissions that occur in the upstream and downstream activities of an organisation's value chain.

Key Points:

Scope 3 includes all indirect emissions that occur in the upstream and downstream activities of an organisation's value chain.
Up to 95% of a business's carbon footprint consists of scope 3 emissions, but only a quarter of businesses account for them in their net zero plans.
Technological innovations can help businesses monitor, manage and reduce emissions in their upstream and downstream value chains.
Our work with Infosys to create The Sustainability Project and now, the Value Chain Navigator, exemplifies the impact we can make in the world."

Yili Wins 2023 Odyssey Award for "Best Corporate Sustainability Film" in Cambridge

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Mercredi, septembre 20, 2023

CAMBRIDGE, England, Sept. 20, 2023 /PRNewswire/ -- "Passion for a Sustainable Future", a short film co-produced by Yili Group and The Economist Group in the UK, was recognized as the "Best Corporate Sustainability Film" at Odyssey 2023 in Cambridge, an acknowledgment of the Asian dairy giant's commitment to global sustainability.

Key Points:

CAMBRIDGE, England, Sept. 20, 2023 /PRNewswire/ -- "Passion for a Sustainable Future", a short film co-produced by Yili Group and The Economist Group in the UK, was recognized as the "Best Corporate Sustainability Film" at Odyssey 2023 in Cambridge, an acknowledgment of the Asian dairy giant's commitment to global sustainability.
Integrating sustainability into its corporate culture, Yili upholds a development philosophy that underscores the importance of green development, win-win cooperation and shared prosperity.
The strategy stipulates that Yili should work with its suppliers to reduce carbon emissions across the value chain in standard formulation, platform building and talent cultivation.
In 2010, Yili took the lead in China's food sector in launching a corporate carbon inventory assessment.