Recent weather events, such as flooding in Asia, have highlighted the devastating impacts of climate change on different sectors, including financial losses, business interruptions, and loss of life. Developing nations are particularly vulnerable due to a lack of risk information and preparedness for extreme events. This creates challenges for investors and businesses, limiting investment opportunities in high-risk regions.
While it will always be debatable if the changes in climatic conditions are exacerbating disasters or not, the world is expected to face rising damages and impact on infrastructure, businesses, and societies due to capital influx and availability of promising opportunities in high-risk areas (i.e., inland flood plains and coastal regions).
Without resilience building and informed decision-making, the impact on infrastructure, businesses, and societies will only worsen.
A recent study by WTW, AXA Climate, and Guy Carpenter found that floods and tropical cyclones are the biggest climate risks for Vietnam's largest and most vulnerable cities, including Can Tho, Hai Phong, Da Nang, Bien Hoa, and Nha Trang. Floods cause 97% of the average annual economic losses in the country. According to a flood assessment tool by WRI, a 1-in-25-year flood event could have an expected annual impact of USD2.6 billion on Vietnam's GDP. These cities are at high risk because they are located in low-lying deltas or on the coastline. With rapid urbanization in Vietnam, coupled with climate change's impact on disasters, the severity of impacts is expected to increase.
High-resolution insights into multi-dimensional physical risks are necessary to avoid/mitigate these impacts, providing valuable references for decision-making and business sustainability.
Intensel's global climate risk software solution can measure portfolio and asset-level risks related to climate change, providing clients with clear and science-backed insights into physical risks under different scenarios, including for Asia.
While there are no existing high-resolution country-wide or city-specific databases of public assets in Vietnam to evaluate risks, Intensel provides granular data which is asset and location-specific. By developing user-friendly and context-appropriate climate risk solutions, we aim to help clients avoid and mitigate climate risks, guiding them in resilience building.