A recent report by PwC warns that over 70% of critical minerals essential for the net-zero energy transition, including copper, cobalt and lithium, face significant drought risk by 2050 due to climate disruption.
Currently, less than 10% of copper production is exposed to significant or higher drought risk, but this figure could rise to over 50% in a 2050 low emissions scenario and surpass 70% in a high emissions scenario.
Copper, cobalt and lithium play essential roles in electronics and clean energy technologies.
Additionally, food crops like rice, maize and wheat are at risk, with 90% of rice production expected to face heat stress by 2050.
Despite efforts by CEOs to mitigate climate risks, more proactive measures are needed to safeguard critical commodities and ensure long term sustainability, according to the report.
Will Jackson-Moore, Global Sustainability Leader, PwC UK said: “Many locations that produce essential commodities are likely to experience more frequent spells of intense drought and heat stress by 2050, even in an optimistic low emissions scenario.
“To avoid economic losses and protect communities and ecosystems; producers, and the broader business community, should understand the impact of climate disruption on production and engage in multi-stakeholder efforts to adapt.”
