Only 10% of companies invest in disaster prevention, says survey
A survey reveals that only 10% of Brazilian companies invest in disaster prevention, despite a high level of social investment after disasters.
A recent survey, conducted by the Idis Institute, highlights that while 87% of Brazilian companies engage in social investment after disasters, only 10% are proactive in investing in disaster prevention measures and a mere 15% invest in climate adaptation. This reflects a critical gap in disaster preparedness among businesses in Brazil, emphasizing the need for a more structured approach to financial contributions aimed at mitigating potential disasters before they occur.
The report also points out that 26% of the preventive, adaptation, and disaster response actions are achieved through collaborative arrangements. This indicates a trend that could be harnessed to enhance the collective capacity for disaster management within the corporate sector. Moreover, although Brazilians tend to mobilize and provide donations during social tragedies, there's a recognition within the sector for the potential of developing more streamlined and ongoing institutional donation practices, rather than relying solely on sporadic contributions during crises.
Idis stresses that while the discussion regarding innovative funding methods, such as sustainable finance and impact investing, is not new in Brazil, the implementation of these solutions falls short of expectations. The report emphasizes climate-related issues as a central theme for philanthropic discourse, suggesting that a more integrated approach to funding and disaster prevention may be vital for the future resilience of Brazilian companies.