More than 70% of critical minerals key for the net zero energy transition at risk from climate disruption

PwC 2024 Climate Risks to Nine Key Commodities Report

• More than 70% of the production of copper, cobalt and lithium – minerals crucial for the clean energy transition – could face significant or higher drought risk by 2050 under a high emissions scenario. Up from less than 10% today.
• Food crops also face significant risk: under a high emissions scenario, 90% of the world's rice production could face significant heat stress by 2050 (up from 75% today), and more than 30% and 50% of maize and wheat, respectively, could face significant drought risk by 2050.
• CEOs are increasingly taking proactive measures, with 47% focused on protecting their workforces and physical assets from climate risk.

LONDON, April 30, 2024 /PRNewswire/ -- CEOs need to accelerate their action plans to safeguard the production of commodities critical to the global population and economy as heat stress and drought risk rise around the world, according to PwC's report, Climate Risks to Nine Key Commodities: Protecting People and Prosperity, published today. 

The report, which analysed nine commodities across critical minerals (copper, cobalt, lithium), key crops (wheat, rice, maize) and vital metals (zinc, iron, aluminium), finds that although reducing emissions will decrease heat and drought risks, key commodities will still face significant stress, even under a low emissions scenario modelled by PwC.

According to the analysis, even if global carbon emissions rapidly decrease (low emissions scenario), 87% of the world's rice production, more than 70% of cobalt and lithium production, and around 60% of the world's bauxite and iron production will be at risk by 2050.

Importantly, these risks can be managed - and 47% of CEOs say they are already focused on protecting their workforces and physical assets from climate risk.

Emma Cox, Global Climate Leader, PwC UK, said:

"Even if global carbon emissions rapidly decrease, climate disruption poses a serious and growing threat to the world's ability to produce essential commodities - including food as well as materials that are themselves essential to the net zero transition. While CEOs are taking action to both cut emissions and adapt to climate change, more needs to be done. Businesses need to understand their dependencies and impacts, then work with governments and communities to transform their consumption and production patterns. This is crucial not only for the ongoing success of individual businesses, but also for the overall health and prosperity of the global population."