Environmental Risk and Sustainability in World Economic Forum’s Global Risk Report 2014

The World Economic Forum (WEF) has published its Ninth Global Risks Report.  We look forward to this report every year.  This year, a number of items caught our attention related to environmental management, sustainability, human rights and risk assessment methodologies.

  • Environmental management.  Man-made environmental catastrophes did not make the Top 10 risks, but it was noted.  In the Global Risk Landscape (Figure 1.1), man-made environmental catastrophes was rated slightly lower than average impact with slightly than higher likelihood.  At the same time, it was included in the Interconnections Map (Figure 1.4).  The map not only shows the perceived connectivity of the risks, but also weighted the strength of the identified linkages.  We find it interesting that man-made environmental catastrophes have:
    • Medium strength connectivity to climate change;
    • Medium strength connectivity to water crises; and
    • Weak connectivity to biodiversity loss and ecosystem collapse.
  • Sustainability.  WEF is working on a sustainability-adjusted Global Competitiveness Index (CGI) that “captures the extent to which prosperity is being generated in a sustainable way, taking into account environmental stewardship and social sustainability.” (Box 1.6). 
  • Human rights.  The Report does not list human rights or labor conditions at all.  There are weak implications in the report’s discussions of income inequalities, urban poor living conditions and social instability.
  • Risk assessment and management.  Risk management practitioners, including those in the EHS/sustainability realm, may find the discussions on risk assessment methodologies (Parts 2.5 and 3) particularly insightful.  Among the more important points is the potential for cognitive bias in the risk assessment process.  Box 2.5 presents a number of risk management solutions, with which EHS and sustainability professionals should already be familiar.

Leave a Reply

Your email address will not be published. Required fields are marked *

3 − 1 =