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UNISDR and PwC Working together to reduce disaster risks “From shared risk to shared value” 8 October 2013 Geneva

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Page 1: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

UNISDR and PwC Working together to reduce disaster risks

“From shared risk to shared value”

8 October 2013 Geneva

Page 2: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

What are the consequences of

“economically rational” decisions?

2

Page 3: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

Source: National Post Sports

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Page 4: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

Source: Nytimes.com

2

UNISDR and PwC • Working together to reduce disaster risks

“From shared risk to shared value”

Page 5: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

3

UNISDR and PwC • Working together to reduce disaster risks

“From shared risk to shared value”

Page 6: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

4

UNISDR and PwC • Working together to reduce disaster risks

“From shared risk to shared value”

Page 7: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

PwC

Source: UNISDR

1.1 million killed

2.7 billion affected

1.3 trillion damage

$

The economic & human impact of disasters is increasing…

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Source: EM-DAT, OFDA/CRED International Disaster Database

Year

Kobe earthquake

Great East Japan earthquake

Wenchuan earthquake

Hurricane Katrina

Over the last 12 years

7

Page 8: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

…and becoming a serious concern for global businesses

5

Natural hazards 2011 – a global sample

Winter Storm Joachim – Dec France, Switzerland, Germany

Flash floods – Nov France, Italy, Spain

Floods – Aug-Sep Pakistan

Tropical Storm Washi –

Dec Philippines

Cyclone Yasi – Feb Australia

Floods – Aug-Nov Thailand

Drought – Oct-Sep Somalia

Flash floods – Jan Brazil

Floods, landslides – Oct Guatemala

Wildfires – Apr-Sep USA

Drought – Oct USA

Wildfires – May Canada Severe storms, tornadoes

– May US

Hurricane Irene – Aug US, Caribbean

Floods – Apr-May US

Severe storms, tornadoes – April US

Flash floods – Dec-Jan Australia

(…) Toyota, Honda Motor Co. and

Nissan Motor Co. -- are losing 6,000

units of production daily (…) lost

production may cost more than $500

million a month (…)

(…)“the whole PC production chain is stuck at a

bottleneck” because of the constraints on hard disc

supply. (…)

(…)Tens of thousands of people have fled Bangkok,

which accounts for 40 per cent of the nation’s economic

output (…)

UNISDR and PwC • Working together to reduce Disaster Risks

“From shared risk to shared value”

(..) Superstorm Sandy will end up causing

about $20 billion in property damages

and $10 billion to $30 billion more in

lost business (…)

and again in 2012

8

Page 9: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

“The more governments, UN agencies, organizations, business and civil society understand risk and vulnerability, the better equipped they will be to mitigate disasters when they strike and save more lives” Ban Ki-moon UN Secretary-General

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Page 10: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

16

UNISDR and PwC • Working together to reduce Disaster Risks

“From shared risk to shared value”

UNISDR & PwC: timing & roadmap to Sendai 2015

Initial DRM-F concept + Selection of companies

Collecting private and public information and adapting the DRMF to global businesses through workshops with pilot companies

Draft Report Creation of the global platform

Oct to Dec 2012 Jan to Mar 2013 2013 -2014 Jun to Oct 2012

2011 2012 2013 2014 2015

HFA Mid-Term review

Global Platform for Disaster risk Reduction (GVA – May)

Global Platform for Disaster risk Reduction (GVA – May)

Rio+20: UN Conference for Sustainable Development (Rio de Janeiro – June)

Ministerial Conferences and Regional Platforms on DRR

Ministerial Conferences and Regional Platforms on DRR

Ministerial Conferences and Regional Platforms on DRR

High level Conference on Large Scale Natural Disasters (Sendai –July)

Fourth High Level Forum on Aid Effectiveness (Busan – November)

Post 2015 Development Consensus - MDGs

World Conference on Disaster Reduction (Sendai)

UN

ISD

R’s

ro

ad

ma

p

UN

ISD

R-P

wC

co

lla

bo

ra

tio

n

May 2013

Presentation of Findings at GAR event organized by UNISDR in Geneva

Our Phase I summary

findings and report were presented at

the GAR event organized by

the UNISDR in May in Geneva

10

Page 11: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

Collaborative platform to create risk resilient communities

10

UNISDR and PwC • Working together to reduce Disaster Risks

A joined initiative The joined initiative between the UNISDR and PwC and a growing number of partner organizations is an essential step for public-private collaboration on disaster risk reduction

Short term objectives of Phase 1 to Geneva 2013 -Identify disaster risk good practice, trends and challenges faced by large companies -Consolidate findings and lay the basis to foster future collaboration, develop framework & share good practice

Objectives of Phase 2 through to Sendai 2015 1. Expansion of DRM community across sectors and geographies 2. Establish DRM Fund to invest in pilot collaboration projects and development of an IT platform for sharing 3. Ensure that both private sector and public sector are incorporated into HFA2

UNISDR

Strong link with public organisations

Expertise in public response to disaster risk management

Strong link with private companies

Expertise in corporate risk management

Collaboration

Private

Public

PwC

What makes our approach different 1. Working with global businesses to create a collaborative DRM community 2. Multiple workstreams covering business strategies, inclusion of risk metrics & developing DRM standards 3. Identify disaster risk management practices and challenges, invest in pilot projects & build

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Page 12: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

Phase 1: building the community and the framework

8

UNISDR and PwC • Working together to reduce Disaster Risks

“From shared risk to shared value”

Technology

People

Process

Structure

Strategy

Reputational

Financial

Natural Hazards

Impact Dimensions

DRM strategies

DRM drivers

DRM-F

Human

Environmental

Operational

Asset damage

Activity disruption

Public

Corporate Value chain

Public

Un

de

rs

tan

d

Maturity assessment

Good practice

DRM community

Methods & techniques

Short term or long term response

Re

sp

on

d

Geological Hydro-Meteorological

Avoidance Reduction Sharing Acceptance

Response type

14 companies

• ABB • Arup • BG • Citigroup • GE • Hindustan

Construction Company

• Hirco • Hitachi • Intercontinental

Hotels Group

• Nestle • NTT East • Roche • SPCL • Walmart

Consumer goods Energy Financial Services Industrial products Life Sciences

Mining Tourism

India, Japan, Switzerland, UK, USA

Cross sectors

Global

12

Workshops in Asia, Europe and in the US with a selected group of companies with global footprints between Sept and Dec 2012

Page 13: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

PwC

1 2 3 4

Finding 4:

‘A common vision’

Collaborative DRM requires a common vision and the long-term cultivation of broad-based relationships

Finding 3:

‘Addressing the challenges’ Public & private sectors must play an active role in addressing the challenges hindering collaboration & jointly manage the enabling environment

Finding 2:

‘A largely untapped opportunity’

Companies: - recognize the

value of collaboration

- display a desire to share

- want the opportunity to collaborate

Finding 1:

‘The private sector’s unique disaster risk reduction capabilities’

Industry-leading companies have made DRR one of their core focus areas and each of them has developed a unique capability

Phase 1: building the business case for prevention

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Page 14: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

Phase 2: building communities, building resilience

8 major workstreams

1. Optimizing DRM strategies

2. Factoring risk metrics into country analysis & business planning

3. Industry sector voluntary certification and standards for DRM

4. Incorporating DRM into the curriculum of MBA programs

5. Responsible investing for risk sensitive business

6. Public-private dialogue for risk sensitive cities

7. UN resiliency

8. Responsible insurance

13

UNISDR and PwC • Working together to reduce disaster risks

“From shared risk to shared value”

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Page 15: UNISDR and PwC - UNECE€¦ · Post 2015 Development Consensus - MDGs World Conference on Disaster p Reduction (Sendai) R-tion May 2013 Presentation of Findings at GAR event organized

Contact

Scott Williams PwC Japan Sustainability Adviser to PwC Japan & PwC Switzerland [email protected] +81 80 3158 6815 @scott42195

Long term thinking. Short term action. Strategic sustainability. Systemic resilience.

© 2013 PricewaterhouseCoopers Aarata. All rights reserved. PwC refers to the PwC Network member firms in Japan and/or their specified subsidiaries, and may sometimes refer to the PwC Network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.