PwC Climate risks report: Key raw materials are at risk

The risk of heat stress and drought is increasing worldwide, so business leaders must accelerate their action plans to protect the production of critical commodities that are key to the global population and economy, according to PwC’s research examining nine commodities (Climate risks to nine key commodities). .

The main findings of the survey:

• All scenarios (low and high emissions) project significant raw material risk.
• More than 70% of the production of minerals (copper, cobalt and lithium) crucial to the clean energy transition will be at significant or higher drought risk by 2050.
• Key crops (wheat, rice, corn) are already facing increasing risks from heat stress and droughts.
• The most widespread and severe risk concerns rice, about 90% of which will face significant or greater risk of heat stress by 2050 under the high emissions scenario (compared to 75% today).
• In the case of corn and wheat, the drought risk will increase from the current 1% to 30% and 50% respectively by 2025.
• Vital metals (bauxite, iron, zinc), which are widely used in manufacturing, transport and infrastructure, have a current 30-50% risk of heat stress reaching 40-60% by 2050.
• The problem is compounded by the fact that the production of all nine critical commodities is concentrated in a small number of countries, many of which face increasing climate risks.
  For the global economy to adapt to climate risks, a holistic approach is needed.
• “It is not enough to focus only on the corporate ecosystem, but the entire supply chain must reduce adverse effects and risks and increase resilience as much as possible, taking advantage of opportunities to develop products, services or business models that help companies and communities to in adaptation – emphasized dr. Rita Szalay, leading ESG expert in PwC’s legal and tax consulting area.