More than half of the global GDP is exposed to risks from the intensifying climate crisis, according to a report by the World Economic Forum and PwC UK.
The report points out that US$44 trillion of economic value generation—more than half of the world’s GDP is moderately or highly dependent on nature and its services and is therefore exposed to nature loss.
In addition, the report estimates that construction (US$4 trillion), agriculture (US$2.5 trillion) and food and beverages (US$1.4 trillion) could be significantly disrupted because of heavy reliance on the extraction of natural resources and the provision of ecosystem services such as healthy soils, clean water pollination, and a stable climate.
Industries that are “highly dependent” on nature generate 15% of global GDP (US$13 trillion) while “moderately dependent” industries generate 37% (US$31 trillion), according to the report.
Dominic Waughray, managing director at WEF, said that the relationship between humans and nature needs to be reset.
“Damage to nature from economic activity can no longer be considered an ‘externality,” Waughray noted. “This report shows how exposure to nature loss is both material to all business sectors and is an urgent and non-linear risk to our collective future economic security.”