What's Happening?
A recent analysis by Oliver Wyman, supported by the World Economic Forum and over 120 organizations, indicates that escalating environmental challenges could significantly impact the global sports industry's
revenues. The report projects that by 2050, the industry's annual revenues could be reduced by 18%, equating to a $1.6 trillion loss. The primary risks identified include heat stress and extreme weather conditions, which could make certain geographies too hot for safe athletic competition and disrupt essential infrastructure. These environmental factors are also expected to affect supply chains for sports merchandise and limit outdoor physical activities for the general public.
Why It's Important?
The potential reduction in sports revenues highlights the broader economic impact of climate and environmental issues. The sports industry, which is projected to grow significantly, is a major economic driver, particularly in sectors like motorsports, football, and racket sports. A decline in revenues could affect investments, employment, and the economic vitality of cities that host major sporting events. Additionally, the disruption of supply chains and infrastructure could have cascading effects on related industries, such as tourism and retail. The report underscores the need for integrated action and collaboration among governments, businesses, and environmental experts to mitigate these risks and promote sustainability.
What's Next?
To address these challenges, the report calls for collaborative efforts to create a new model of prosperity in sports. This includes making sports facilities and value chains more resilient through partnerships between national governments, local authorities, and companies. Initiatives like the UN-backed Sports for Climate Action are already fostering global collaborations to share best practices and secure additional financing. The report emphasizes the importance of catalyzing financing for resilience, highlighting sports' role in city economies, and promoting the stewardship of natural resources. These actions are crucial for ensuring the long-term sustainability of the sports industry.
