One of the most important issues facing our world today is the Environment. Our planet, our oceans, our forests, mountains, and wildlife. As modern humanity progresses, and our populations grow, our factories and waste pollute the environment and our health and the healths’ of our children. Put together, global warming is arguably the biggest challenge our kind will ever face to ensure the planet’s survival and the presence of sustainable resources for future generations. For some, its an arms race to develop renewable energy sources. For others, it’s a race against time to prevent the planet from disintegrating.

The question however is not what we as a human race are going to do about it which we will leave to the scientists, environmentalists, and legions of NGO’s out there, it is how does business contribute to the damage to our planet and when will the corporate community be asked to eventually pick up the bill? How business contributes is of course a matter for debate? Putting aside the question of release of carbon dioxide into the atmosphere and global warming in general, what about industrial pollution and its sudden, accidental, or long term effects on a local populace?



There will always be a limit to what the government sector will be able to absorb with its limited tools and budget to combat environmental damage. It is without doubt that the use of the international insurance and capital markets will be essential to cater for pollution occurrences that may occur. Given that we are an emerging part of the world, both legislation and basic general public welfare and health are still consideredprimitive compared to our globalized counterparts in the western world. Corporations need to start thinking long and hard about their effects on the environment, and the long term implications on the indigenous population. Whether it be pollution to our land, seas, water supplies, or air, whether it be oil pollution, industrial waste, or not enough recycling of consumer waste, now is the time to factor your obligations into your long term enterprise risk management strategy framework.

The private sector regularly contributes to:
- Release of toxins into the atmosphere
- Polluting our seas and fresh water supplies
- Contaminating our soil
- Manufacturing products unknowingly dangerous to our health whether business to business, or business to consumer and the cost of their recall

Then there are major pollution incidents such as:
- Oil spills (The latest Oil Rig loss in the Gulf of Mexico)
- Major accidents or explosions at industrial or government facilities (Chernobyl)
- Gulf War Pollution Claims

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