A market bubble is set to burst within this financial cycle.
It’s going to deliver shocks and opportunities.
As with previous financial shocks, such as the 2007/8 sub-prime mortgage scandal, mainstream rating agencies have failed to raise the alarm, despite the fact that overwhelming evidence is readily available of an approaching burst of a market bubble and individual voices, such as Mark Carney, Governor of the Bank of England, have already alerted the insurance industry. As ever, to be forewarned is to be forearmed.
Enormous opportunities exist for corporations that take action now, to consolidate their positions and prepare themselves to take full advantage of the considerable opportunities that are beginning to arise out of a market and energy reset. Ahead of the 2007 financial crash, while the rating agencies had remained complacent, a small number of individuals realised that endless growth in the mortgage market was unsustainable. Accordingly, they rolled up their sleeves and did the basic research, which enabled them to gather evidence and bet with certainty against the market. We can provide you with similar overwhelming evidence of totally unacceptably high climate change risks, which are going to potentially impact almost every sector of the global commercial markets.
Our team of top international climate scientists, business analysts and systems thinkers, have carried out a risk assessment of mainstream climate science, in respect of the timing and intensity of climate change impacts. Our standard due diligence approach has identified major flaws in the way that climate change risks are being assessed and presented to the business community. One reason is that the mainly consensus-based scientific methodology, at the heart of current assessments, produces a muted assessment of risk, through a process that is too ponderous to keep up with the real-time state of change. A situation that is entirely unacceptable from a business perspective.
Our findings, which are easily verified, reveal a very high risk of catastrophic financial impacts to the global economy within this financial cycle, i.e. the next 5 to 10 years. What you need to know. Certain climate change feedback loops may already be interacting with one another. The potential consequence is a multiplication of the interacting components, as opposed to a sum and these interactions may dramatically accelerate the rate of change. This has not been generally appreciated, or as yet, presented in mainstream documentation, which in some cases has additionally downplayed the projected intensity of some key impacts. Credible projections now show us potentially passing a very dangerous threshold of 1.5°C of warming, around the middle of the next decade, with the likelihood that 2°C warming, which is unanimously agreed, as potentially catastrophic, being passed during the mid-2030s, or even before. Rapidly rising global temperatures will cause ever-increasing severe weather events, both in numbers and severity. This is supported by credible sources, such as Lloyds of London and the UK government, whose research shows that changes in weather patterns will disrupt global food production, leading to considerable societal unrest, conflicts over water and food, mass migration and potential global economic meltdown. The reality is that these impacts are unavoidable, unless we take very draconian actions to limit emissions, halt deforestation and commence a global environmental restoration project.
Considerable evidence that this is going to happen already exists. The climate complacency bubble will burst when the realisation sets in, more than likely occurring sometime within the next five years, as rapidly escalating weather and climate-related insurance claims go through the roof. This will make huge sectors of the property and commercial markets uninsurable. Organisations that react now, ahead of the crash, will be best positioned to take advantage of the overwhelming global demand for emergency change.
You should also be aware that directors of companies that have failed to fulfil their fiduciary responsibility to their shareholders, clients and staff, in the light of readily available information, are highly likely to end up facing legal redress.
Envisionation would appreciate the opportunity of presenting the evidence of the above to you and to assist in helping you to identify exposure and opportunity relevant to your corporation. The bottom line is that making a timely change from the currently, wholly unsupportable situation, to the next essential sustainable long-term paradigm, has been quantified by recognised world experts, as costing $90 trillion, and we have a multifaceted plan to help you seize a major portion of this opportunity. Once achieved, a sustainable future will deliver confidence, and thereby, enormous value.
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