PwC: SA Economic Outlook | Climate risks for essential commodities
The report focuses on the risk that drought and heat stress poses to the production of nine essential commodities.
By PwC
We’re pleased to share our sixth South Africa Economic Outlook report for 2024 which focuses on the risk that drought and heat stress poses to the production of nine essential commodities.
PwC’s recently released report ‘Climate risks to nine key commodities: Protecting people and prosperity’ considered climate-related risks faced by the global producers of nine essential commodities, grouped into three categories:
Vital metals: iron ore, bauxite and zinc
Critical minerals: cobalt, copper and lithium
Key crops: maize, wheat and rice
For companies that depend on these commodities, climate change has become a real and present threat. In South Africa and other countries, drought and heat stress will impact the availability of vital metals, critical minerals and key crops needed to produce the materials and food products essential for economic development and human well being.
In our South Africa-focused report, we look at what these commodities are used for and their vulnerability to drought and heat stress. The analysis includes South Africa-specific information for each of the three commodity categories, including how the country uses them in the making of steel, vehicles and food products. To help stimulate discussion on how companies should respond to drought and heat stress risk, each analysis includes an anonymised case study of how companies are responding to these challenges.
Key content in this report includes:
Protecting people and prosperity: Understanding climate risk scenarios for nine key commodities
Drought and heat stress risks: Their impact on vital metals, critical minerals and key crops
Vital metals in steel production: Factories and foundries making metal products are key to industrialisation and localisation
Critical minerals in automotive manufacturing: Making electrical vehicles will require a significant increase in local battery production
Key crops in food production: Grain-dependent products account for 70% of South Africans’ food budget
Climate risk in insurance: Risk carriers need to turn climate risks into opportunities
How PwC assists our clients with business resilience decisions, helping them anticipate, manage and recover effectively from disruptions associated with climate change
You can explore further insights by visiting the South Africa Economic Outlook webpage.