Climate change a challenge for Switzerland

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1 Climate change a challenge for Switzerland

2 It s up to all of us Climate change knows no limits we all should set a good example and actively contribute to climate protection. Ladies and Gentlemen, People and their environment are subject to constant change processes to which we have to adapt. Here at Zurich Switzerland we grapple with these changes actively after all, hedging current and future risks is, and will remain, our core business. Climate change is one of these areas of risk was globally the warmest year since records began, following on from 2014 and 2015, also with record temperatures will go down in history as a year with a record number of 185 climate and weather related catastrophes. Switzerland was also affected significantly by the heat wave in the summer of Temperatures are rising, precipitation is on the decline. With the heat come more intensive thunderstorms and driving rain. We are experiencing extreme weather events such as drought and water shortages on the one hand and flooding and landslides on the other. Combined with our high settlement density, this leads to increased human suffering and high material losses. However, Switzerland is not just affected by local natural events. Extreme events on another continent can also affect Swiss businesses because of global interconnections, resulting in supply chain interruptions and falling sales. We are convinced that the challenge to people and society lies in recognizing future risks, assessing them correctly and taking precautions to minimize the negative impact of global warming wherever possible. Many people in Switzerland are already committed to meeting the challenges of a changing climate. By awarding the Zurich Climate Prize Switzerland & Liechtenstein, Zurich Switzerland encourages dialogue with regard to climate protection and rewards sustainable effort and dedication. Join us in our commitment! Joachim Masur Chief Executive Officer Zurich Switzerland 2 3

3 Climate change a global challenge Changes can be clearly felt The climate is changing. The changes are already evident worldwide. In 2016, the average surface temperature was 0,99 C higher than the average temperature of the 20 th century (NASA ). Precipitation patterns are also changing: the sea level has risen more quickly in the last forty years than in previous years, while the large ice sheets in Greenland and the Antarctic are shrinking (IPCC ). In addition, the number of natural disasters such as storms, floods and droughts has increased significantly since 1970, resulting in greater damage from extreme weather. Insured damage alone amounted to around USD 28 billion in 2015 (Swiss Re ). Local events with global consequences Climate change is one of the greatest challenges of our age. It affects each and every one of us and has diverse impacts on the environment, the economy and society. At the same time, it intensifies existing challenges, such as the future of power supply. In order to effectively face this challenge, first and foremost there must be a massive reduction in greenhouse gases. The goal is to prevent world temperatures from rising by more than two degrees Celsius, compared to pre-industrial levels. Otherwise, the consequences for the economy and society could be devastating: more conflicts over natural resources such as water, agricultural crop failures due to droughts and flooding, increased migration due to environmental factors, and health impairment. Climate change does not just have local consequences. As the economy is increasingly networked on an international scale, new interdependencies have arisen. Breaks in production following a local natural disaster can also lead to interrupted supply chains and breaks in production in other parts of the world. The challenge for people and society lies in adjusting to changing framework conditions, assessing the dangers, identifying and quantifying the future risks from climate change, and finally minimizing the negative impacts. 1 NASA 2017: NASA, NOAA Data Show 2016 Warmest Year on Record Globally, Release , January 18, IPCC 2013: Climate Change 2013: The Physical Science Basis, Summary for Policymakers. 3 Swiss Re 2016: Natural catastrophes and manmade disasters in 2015: Asia suffers substantial losses. Sigma, No. 1/

4 Major impacts in Switzerland Climate protection and adaptation are important Climate change has a particularly severe impact on Switzerland. Since records began in 1864, the average temperature in Switzerland has risen by 1,8 degrees Celsius (MeteoSwiss ). Since 1985, all years in the long-term comparison were warmer than average. The climate scenarios for Switzerland predict rising temperatures for all regions and seasons, namely between 1,2 and 4,8 degrees Celsius by the end of this century. Summer precipitation is likely to decline throughout Switzerland (CH ). It also appears to be clear that more intensive and longer warm periods and heat waves, such as those experienced in the summers of 2003 and 2015, will increase. These heat waves are also accompanied by more intensive thunderstorms with extreme rain storms. The consequences are devastating landslides and flooding. Climate protection and adapting to change are two inseparable strategies for dealing with climate change. On the one hand, massive efforts to minimize greenhouse gas emissions are needed to prevent dangerous consequences, such as the melting of Arctic ice. On the other hand, we must adapt to unavoidable changes. Diverse measures are available that also offer opportunities for the economy and society. Examples include: Protection from natural hazards that addresses future climate conditions Establishing and expanding early-warning systems for extreme weather events Raising general awareness of how to deal with summer heat Tourism offers that are adapted to the changed climate conditions In agriculture, cultivating plant and crop varieties that are less susceptible to dry spells Switzerland is faced with several challenges as a result of these changes: The impact on winter tourism as a result of declining guaranteed snowfall Increasing irrigation needs in agriculture Pressure on flora and fauna to adapt Stress and damage to infrastructure The health impacts of hot spells 6 4 MeteoSwiss (2015): Klimareport Federal Office of Meteorology and Climatology (MeteoSwiss), Zurich. 5 CH2011 (2011): Swiss Climate Change Scenarios CH2011, published by C2SM, MeteoSwiss, ETH, NCCR Climate, and OcCC, Zurich.

5 Reducing greenhouse gases is necessary To keep global warming at a manageable level, the goal is to essentially cut global greenhouse gases by half by This is only possible if all countries make massive efforts, particularly those currently emitting very high levels of greenhouse gases. The costs and investments associated with this are high, but they are considerably less than the cost of the damage that unbridled climate change would cause. In the mid-term, annual greenhouse gas emissions should be reduced to approximately one ton per person per year. Industrial countries and increasingly even emerging countries are far from reaching this goal. CO2 emissions from the burning of fossil fuels, metric tons of CO2 per capita (2016) North America: 16,1 Middle East: 7,7 China: 6,6 Europe: 6,2 Switzerland: 4,6 Latin America: 2,4 Asia (without China): 1,58 Africa: 0,95 The figures relate exclusively to CO2 emissions from the burning of fossil fuels. Other greenhouse gases are not taken into account. Source: IEA 2016: CO2 Emissions from Fuel Combustion: Highlights (2016 Edition), Paris. 9

6 Switzerland has reduction potential Switzerland shares responsibility. Although it is only responsible for about 0,15 percent of global emissions, Switzerland can contribute to reaching global goals. The Swiss emit 4,6 metric tons of CO2 per person each year, just from the burning of fossil fuels (IEA 2016). This places us well above the target of one metric ton and above the global average of 4,46 metric tons of CO2 per person. If we add the rest of the CO2 emissions and the emissions abroad that are caused by imported goods, the total per capita emissions almost triple that amount. There is thus great potential to reduce these emissions even further. 11

7 The greatest reduction potential is found in the three areas of housing, consumption and mobility. Buildings & Housing Despite many improvements in efficiency and the increased use of renewable energy sources, there is still great potential for optimization in the areas of architecture, infrastructure and utilization. There is still tremendous savings potential, particularly when it comes to energy consumption used for heating: better building envelopes, new building technologies and energy renovations to existing buildings in general will play an important role. Transport & Mobility Private mobility is responsible for almost a fifth of the greenhouse gas emissions from private consumption. Added to these are the emissions from the transportation of goods. At the same time, the desire for mobility continues to grow. The greatest reductions can be achieved in passenger and freight transportation through increased efficiency and electrification on roads, by switching to public transport and by using ecological traffic planning. In addition to changing one s own behavior, technological and structural changes can also help to fully utilize existing potential. Studies show that around half of greenhouse gas emissions could be reduced through an environmentally friendly lifestyle, i. e., the combination of various measures in the areas of food, mobility and housing (Jungbluth et al. 2012). Production & Consumption Producers and the purchasing behavior of consumers are especially significant in terms of lowering the great demand for resources in private consumption. Through their demand behavior, households and companies exercise an important influence on the manner, number and variety of products manufactured, sold and used and their environmental impact. Conscious consumption requires that appropriate bases for decision-making be available to consumers. This could be in the form of logos about the production method or information about the contents, country of origin or energy consumption. Producers can play their part through a sustainable offering and production methods that save on resources. Reduction potential of greenhouse gas emissions from private consumption Food Mobility Housing Vegetarian food 5,60% Organic products 2,90% Less food waste 1,60% Public transportation 15,00% Electric car 6,40% Most efficient car 6,00% No flying 2,60% Energy-saving behavior 11,80% Sustainable energy 2,60% MINERGIE-P standard (passive house) 11,70% Economical household appliances 1,50% Heat pump 13,20% Legend: By consistently choosing public transportation over cars, 15 percent of the greenhouse gas emissions from private consumption can be reduced. Source: Jungbluth et al N. Jungbluth, R. Itten, M. Stucki, 2012: Umweltbelastungen des privaten Konsums und Reduktionspotenziale. ( Environmental Impact of Private Consumption and Reduction Potential. ) On behalf of the Federal Office for the Environment, Uster. 13

8 Opportunities for the economy and for society In terms of the economy, there are tremendous opportunities for Switzerland. The domestic economy could be reinforced, since energy imports can be replaced with more efficient technologies and alternative energy sources. Cost savings can be realized by creating a more efficient economy. The export sector and start-up companies in particular could benefit from opportunities to export forward-looking innovations, clean technology products and knowledge on dealing with natural hazards and developing sustainable solutions. Finally, an economy that increasingly relies on renewable energy sources decreases its dependence on the few countries that export oil and gas. Society also stands to benefit. New employment opportunities in sustainable sectors will arise from developing renewable energy sources and increasing energy efficiency. Comprehensive solutions will contribute to raising the quality of life for the population, for example by reducing air pollution, as well as creating sustainable housing structures and intact recreational spaces. Every contribution counts The transition to a climate-friendly economy and society requires efforts and decisive action from everyone from the government, companies and organizations, as well as from each and every individual. Politics can promote the transition to a climate-friendly economy and society by introducing conditions for a stable and far-sighted framework. This can be done, for example, by defining ambitious climate protection targets and high efficiency standards or promoting climate-friendly technologies and products. Municipalities, in par ticular, can play a leading role by setting an example of a sustainable climate policy or dedicating themselves to sustainable housing or climate-friendly mobility. Companies have the power to minimize their greenhouse gas emissions: in the supply chain, in the production and transport of goods, as well as in the products and services themselves. They can make their business processes climate-friendly, make a commitment to manufacturing climate-friendly products, develop innovative climate protection technologies and increase their customers awareness of the need for climate protection. At the same time, each and every individual can actively contribute to climate protection. Our everyday consumption decisions alone can have a major impact: we can switch to climate-friendly mobility, buy energy-efficient vehicles and appliances, give preference to organic products and purchase energy from renewable energy sources. All of these are important steps towards creating a more climate-friendly economy and society. 15

9 Zurich s contribution For Zurich, addressing current and future risks is of central importance. This includes climate change. As a global leader in risk management, we are doing everything to recognize the impact and risks relating to climate change and to develop products and services that protect our customers from these risks. On a number of levels, Zurich addresses how exactly climate change impacts our lives, and what each individual can do to counteract it. So that our environment and our habitat stay in balance. 17

10 National Zurich Climate Prize Switzerland & Liechtenstein Since 2011, Zurich has been promoting projects that make a sustainable contribution to climate protection through a national competition. In addition to prize money totaling francs, the winners benefit from additional public recognition. Zurich is reinvesting refunded CO2 steering tax contributions in the Zurich Climate Prize. Read more about this at Zurich s natural hazards radar As a consequence of climate change, Switzerland can expect an increase in weather extremes that could inflict major damage on real estate and infrastructure. Zurich s natural hazard radar is an on line tool that helps to recognize threats, pinpointed based on the address that is entered. A solid site and property analysis and numerous expert tips are helpful for sustainable protection. Zurich offers the natural hazards radar as a free service across Switzerland. Change the picture Zurich in the Umwelt Arena How can our needs in terms of housing, mobility and energy also be made sustainable? In an interactive exhibition, Zurich is demonstrating the consequences of global warming and promotes awareness for the protection against natural hazards and for sustainability. Read more about this at Wetterfroscher education program Zurich supports the Wetterfroscher school program developed by Meteotest and has been involved in the development of the new chapters Weather and Climate and Natural Hazards. The program is aimed at classes and teachers in primary school and fosters an understanding of the environment at an early age. In a fun course, the kids learn how weather related dangers put people at risk and how they can protect themselves.

11 Zurich Climate Prize Switzerland & Liechtenstein We want your projects! Projects are sought that contribute to reducing CO2 emissions by cutting resource consumption, increasing energy efficiency or bringing about changes in behavior. The prize focuses on the areas of everyday life which have the greatest impact on climate and the environment: Buildings & Housing Production & Consumption Transport & Mobility The Zurich Climate Prize Switzerland & Liechtenstein is endowed with CHF Individuals, small and medium-sized enterprises, startups, municipalities, institutions, associations and organizations, as well as national and international companies can participate. Further information on the winners and on the upcoming call for projects can be found at: twitter.com/zurich_ch Zurich Insurance Company Ltd Corporate Responsibility Zurich Climate Prize Hagenholzstrasse 60, 8085 Zurich FM38437e-1705 May 2017

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