Broker Check

100 Seconds to Midnight

January 29, 2020

Insurance Journal reports that The Bulletin of the Atomic Scientists has reset their "Doomsday Clock" to 100 seconds to midnight. (The post is at 2020/01/23/556256.htm.) The clock was last changed in 2018 to two minutes to midnight, the closest since 1953 during the Cold War.

The factors that led to the move were a breakdown in nuclear arms control and limited political response to climate change, compounded by cyber-based disinformation campaigns.

Climate risks were highlighted in a recent report by McKinsey Global Institute cited by Insurance Journal. The report is at Briefly, McKinsey's report finds climate risk is present and growing with "...millions of lives, trillions of dollars and the world's stock of natural capital at risk".

Insurers and financial companies have taken note of the risks and reacted by reducing coverage to industries such as coal, and incorporating environmental concerns into investment choices. 

The Global Association of Risk Professionals (GARP), a non-partisan, non-profit organization, is launching a certificate in sustainability and climate risk after a study showed over 80% of risk professionals responding wanted to learn more and/or expected more environmental focus in their organization. Not everyone will want to spend $650 for an SCR certificate and 100-130 hours reading course material, but we should all keep informed of developments and promote strategies to manage this risk.