T

he United Nation (UN) wants the private sector to share responsibility in reducing risks of both natural and man-made disasters.

During a biennial conference on disaster risk reduction on Tuesday, UN deputy secretary general Jan Eliasson said that there was a man-made component to any natural disaster and if it was not addressed properly business and economic sustainability would be undermined.

'€œWhen we think about reducing risk from disaster we should not only cover the issues of human lives and casualties but also the sustainability of the economy should the disaster, for example, destroys farmland or manufacturing facilities,'€ said Eliasson on the sideline of the Fourth Session of the Global Platform conference held by the United Nation International Strategy for Disaster Reduction (UNISDR).

Eliasson explained that the UN was mobilizing stakeholders to do business in a sustainable way in response to the threat of natural disaster.

'€œAwareness should be raised on where, for example, rice field and manufacturing facilities should be built in order to protect them from future threats,'€ he said.

The UN'€™s third Global Assessment Report on Disaster Risk Reduction issued last week revealed that economic losses from disasters were simply out of control.

A review by the UNISDR indicated that direct economic losses from disasters so far this century are 50 percent higher than previous estimates: a massive US$2.5 trillion.

According to the UN, globalized supply chains have created new vulnerabilities. Since the 2011 Japan earthquake, Toyota has lost $1.2 billion in revenue. Parts shortages in the US caused 150,000 fewer vehicles to be manufactured. Production in India and China dropped 70 percent and 50 percent respectively.

'€œBusinesses suffer direct losses when they have invested in factories, offices, plants, warehouses and other facilities in locations exposed to hazards such as floods, cyclones, earthquakes or tsunamis and without adequate investments to reduce risk,'€ said Margareta Wahlstrom, the special representative of the secretary general for the UNISD.

'€œAnd they experience indirect losses, as production, distribution and supply chains are interrupted; consequently, production, output and throughput are reduced,'€ she said.

The private sector accounts around 85 percent of investment, so the Fourth Global Platform conference has focused on how businesses could participate in disaster mitigation.

'€œThe concrete outcome from this conference is probably action on standards for buildings,'€ said Eliasson.

Aside from the involvement of businesses, the conference is also aimed at improving local government in risk reduction.

Many governments have adopted policies and legislation, but there are gaps in implementation.

While analysis and evidence on risk management has improved remarkably still more nuanced information and practical application particularly around economics, urbanization and climate change adaptation is still required, according to the UNISDR.

The Fourth Session is an opportunity to progress and consult on the Hyogo Framework for Action (HFA) 2005-2015.

The HFA was set up after the tsunami in December 2004. Some 168 countries signed a 10-year plan to make the world safer.

The countries have now progressed on to draft the next accord after HFA ends in 2015.

Talks during the Fourth Session for the extension of the framework, dubbed as HFA2, may make it a post-Millenium Development Goal. A draft will be finalized towards the end of 2014, for consideration and adoption at the World Conference on Disaster Reduction in Japan in 2015.