Climate change: You are part of the system

So you think you’re separate from the environment? Think again. The notion that humans have little effect on a big planet is the fundamental flaw which is behind the global problem we face today: that of climate change.

That much is the simple yet powerful message delivered today by Professor Clifford Shearing, of the University of Cape Town’s Centre for Criminology as he addressed the opening of the Ecocentric Journey conference, hosted by Santam, the Centre for Criminology and research-based consulting firm, Partners for Change, in Cape Town.

Shearing noted that the three day conference sets out to create opportunities for discussions on understanding climate change; the need for resilience and adaptation; and the role of business – and specifically, insurers - in mitigating environmental change.

As the climate changes, so too do the risks which people – and businesses – face. Business has a key role to play, both in terms of shaping adaptation, and also in terms of dealing with the costs associated with adaptation to changed circumstances. “At the heart of this is the business of insurance underwriting, since it is concerned with preparing for the hazards which we face, such as illness or accidents,” said Shearing.

A changed climate means a changed risk environment, with which insurance must deal.

Explaining the perhaps obscure role of the Centre of Criminology as a sponsor of a climate change conference, Shearing pointed out that criminology, too, is concerned with risk mitigation and security. The insurance industry, he said, is concerned with security and played a key role in the emergence of the massive private security industry in South Africa. “Like insurance, criminology deals with security; there is no bigger threat to security today than climate change.”

Adaptation in relation to environmental risks is a major imperative for insurance companies. What is becoming increasingly apparent is that many of these risks are not acts of God but the effect of human activity. “We are learning that these events are not beyond human control, but indeed are very much the result of human action as we live in our economies,” said Shearing.

Mitigation of the changes in climate becoming apparent depends on introducing the possibility that earth systems are not immune from human influence, contrary to previous notions. “Rather, human systems are closely coupled to earth systems. Humans are not independent of the world,” Shearing said.

While it sounds simple and seems obvious, Shearing said this concept of separation is entrenched in the very roots of modern civilization – which is also why changing such a perception is a monumental task. “We cannot continue to act as if the planet is so big that it is immune to human acts.”

The insurance industry, said Shearer, will play a potentially pivotal role in creating regulations and incentives which will persuade clients to place themselves in a better position to adapt to and mitigate the effects of environmental change. Santam is playing a leading role in what it considers to be a journey towards more ecologically and economically sound business practices.