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Enhancing Community Resilience: Addressing Compound and Cascading Climate Shocks

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28 Aug, 2024

This post was originally published on Climate Links

Enhancing Community Resilience: Addressing Compound and Cascading Climate Shocks
jschoshinski
Mon, 08/26/2024 – 13:11

As climate change accelerates, communities around the world are increasingly vulnerable to both interrelated and simultaneous, seemingly unrelated, risks. Unlike isolated weather events, compound and cascading shocks—where multiple risks interact or one event triggers subsequent crises—pose a growing threat. Complex risk necessitates a shift in how development actors approach international development and climate resilience programs and policies, particularly by integrating comprehensive risk frameworks that account for interdependencies in critical systems.

Understanding Compound and Cascading Shocks

Compound and cascading shocks are distinct yet interconnected concepts. Compound shocks occur when multiple risks, such as extreme weather events, economic disruptions, or pandemics, coincide or interact, amplifying their collective impact. A recent example is the global food security crisis exacerbated by the war in Ukraine, the COVID-19 pandemic, and climate-induced droughts and floods in key agricultural regions. This combination of factors created a “perfect storm” that severely disrupted food supplies and pushed millions into hunger.

Cascading shocks, on the other hand, are triggered when one initial event causes a series of subsequent crises, typically across interconnected systems. The 2020-2022 California drought is one example: historical drought led to a variety of cascading shocks, including declines in agricultural production, wildfires and deteriorating air quality, and a strain on energy supply. These shocks had their own set of impacts—both individually and in combination—including $3 billion in crop revenue losses, health emergencies and increased healthcare costs, biodiversity loss and increased greenhouse gas emissions, and higher energy costs.

Policy and Planning Recommendations

To the extent that development actors are integrating climate risk into their work, we tend to assess the potential impacts of risk by looking at one hazard and sector at a time. Given the growing frequency and severity of these interconnected risks, development actors—including government policymakers, donors, and implementers—must adopt a comprehensive approach to integrating risk into international development and resilience programs and policies, meaning we must consider the possibilities of compound and cascading risk. 

These concerns are not unique to the Global South. The U.S. Government’s Fifth National Climate Assessment (NCA5), particularly Chapter 17 on “Climate Effects on US International Interests,” highlights the increasing importance of accounting for system interdependency in risk management. This involves recognizing how different systems—such as energy, water, food, and health—are interconnected, even across borders and hemispheres, and how a failure in one area can cascade into others. 

To effectively manage these risks, development actors should prioritize the following actions:

  1. Adopt Comprehensive Risk Frameworks: Incorporate strategies that account for the interaction of multiple risks, ensuring that resilience-strengthening efforts robustly address interconnected systems and risks. Tools such as scenario planning, stress testing, and systems mapping can help to ensure programs and policies are developed with a focus on resilience to complex risk.
  2. Strengthen Interdisciplinary Collaboration: Encourage collaboration across sectors and disciplines to address the multifaceted nature of compound and cascading shocks. 
  3. Incorporate Adaptive Management: Develop and implement adaptive management processes, allowing actors to respond quickly to unexpected interactions and impacts.

Opportunities to Address These Shocks

Recognizing and addressing compound and cascading risk is essential for enhancing community resilience. As such, National Adaptation Plans and Nationally Determined Contributions are key opportunities to focus on resilience to complex risk. USAID’s Comprehensive Action for Climate Change Initiative (CACCI) is well-positioned to strengthen risk management by helping countries use comprehensive risk frameworks while designing their climate policies and taking climate action. For example, CACCI is supporting the African Union in implementing its Climate Change and Resilient Development Strategy and Action Plan. This support includes enhancing coordination between regional economic communities and Member States in monitoring and evaluating progress on addressing transboundary and complex climate risks. 

Government policymakers, donors, and implementers can also follow the actions above to strengthen resilience to complex risk in other programs and policies. Together, we can create more robust and resilient systems and communities despite the increasingly complex challenges posed by climate change.

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Integrating environmental stewardship into IT governance frameworks has become essential as businesses increasingly prioritise sustainability. IT operations contribute significantly to carbon emissions, energy consumption and electronic waste (e-waste). Organisations that embed environmental responsibility into their IT governance can reduce their ecological footprint, improve operational efficiency and strengthen their brand reputation.

Erica Smith, chief alliance officer and environmental, social and governance lead, Blue Connections IT, said, “Environmental stewardship supports financial performance, risk mitigation and brand differentiation. With rising energy costs, increased consumer demand for sustainable products and services, and growing pressure from investors and regulators, companies can no longer afford to overlook their environmental responsibilities.

“Poor sustainability practices in IT can lead to high operational costs, supply chain risks and reputational damage. Conversely, a proactive approach improves efficiency, attracts environmentally conscious customers and helps future-proof businesses against evolving policy and regulatory changes.

“Integrating environmental responsibility into IT governance integrates sustainability initiatives into decision-making systematically. Organisations can reduce waste, lower energy consumption and extend the lifecycle of technology assets while positioning themselves as responsible leaders in an increasingly climate-aware market.”

There are four key areas that present opportunities to embed environmental stewardship into IT governance frameworks.

1. Device lifecycle management

A structured approach to managing the lifecycle of IT assets ensures devices are deployed efficiently, maintained properly and retired responsibly at the end of their useful life. Embracing a circular economy model, where equipment is refurbished, reused or ethically recycled, can significantly reduce e-waste and resource use. Companies that adopt this approach lower their environmental impact and unlock financial value by extending the lifecycle of IT assets.

Smith said, “Effective asset recovery strategies further support sustainability efforts. Integrating secure data erasure and refurbishment into IT governance policies lets businesses repurpose functional devices within the organisation or resell them to external buyers. Responsible e-waste recycling also supports companies to process materials ethically in instances where resale is not viable, reducing landfill contributions and preventing environmental contamination. The adoption of industry-certified data sanitisation methods also safeguards compliance with security and privacy regulations.”

2. Sustainable procurement

IT governance frameworks should prioritise the selection of technology vendors and partners committed to sustainable manufacturing, responsible sourcing and energy-efficient product design. This includes favouring IT hardware with a high percentage of post-consumer recycled materials and using minimal packaging. Additionally, employing Device-as-a-Service (DaaS) models optimises IT asset utilisation while reducing upfront investment and unnecessary hardware purchases.

Partnerships with sustainability-driven IT service providers can further enhance an organisation’s environmental impact. Working with partners that offer end-to-end IT asset management solutions, encompassing secure device deployment, certified data sanitisation and ethical recycling, simplifies the process of aligning IT operations with sustainability goals. Companies that prioritise environmental stewardship in their IT governance framework gain a competitive advantage by demonstrating their commitment to responsible business practices.

3. Energy consumption

Data centres, cloud services and enterprise networks require substantial energy resources, making green IT practices essential. IT governance frameworks should include policies to reduce consumption by optimising server efficiency, reducing redundant infrastructure and using renewable energy sources. Cloud providers with strong sustainability credentials can support carbon reduction initiatives, while virtualisation strategies can consolidate workloads and improve overall energy efficiency.

4. Employee engagement

Educating staff on sustainable IT practices, such as energy-efficient device usage and responsible e-waste disposal, creates a culture of accountability. Organisations that implement green workplace initiatives, such as responsible end-of-life disposal programs, reinforce their commitment to sustainability at all levels.

“IT governance must also align with corporate environmental, social and governance commitments. Companies can contribute to broader sustainability objectives by embedding environmental stewardship into IT policies, such as net-zero emissions targets and responsible supply chain management. Clear reporting mechanisms and regular sustainability audits aid transparency, letting businesses track their progress and demonstrate accountability to stakeholders,” Smith said.

Government regulations and evolving industry standards are increasingly shaping the sustainability expectations for organisations. Aligning IT governance frameworks with best practices for environmental stewardship keeps companies ahead of regulatory requirements. Proactive adoption of sustainable IT practices positions businesses as industry leaders in environmental responsibility.

Smith said, “Integrating environmental stewardship into IT governance frameworks is not just about meeting compliance obligations; it’s about futureproofing company operations and prioritising the broader environment. Taking a proactive approach to sustainability lets organisations drive efficiency, reduce long-term costs and contribute to a healthier planet. Businesses that lead in sustainable IT governance will be well-positioned for long-term success as environmental concerns continue to shape consumer and corporate priorities.”

Image credit: iStock.com/Petmal

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