Environmental impairment risk continues to rise

Industrial activities can have a significant impact on environmental threats such as climate change and pollution. (Photo: Shutterstock)

The growth of the global economy has led to a rising concern among the public, media, businesses and politicians about environmental damage and its effects. When human activity causes damage to the environment, protection is needed for nature and health. Companies bear environmental risks and can be held liable for damage, even when not acting negligently.

Some companies bear higher environmental risks than others due to their industries. An example is a company with facilities that produce or store toxic substances like chemicals, which despite all security measures, might leak into the environment. In other areas, such as the pharmaceutical or oil and gas industries, companies can be held liable for damage due to waste discharge activities, emissions or disposal practices — environmental impairment ranks as one of the top business risks for the oil and gas sector in the Allianz Risk Barometer 2018.