Trevor Allen, Head of Sustainability Research Jeffrey Schultz, Chief CEEMEA Economist Sumati Semavoine-Jain, Sustainability Research Analyst  Niccolo Carrara, Emerging Markets EconomistBNP Paribas London Branch | Global Markets (Recorded 04 January 2024) • There are significant pockets of vulnerability in countries’ ability to respond to physical risks related to climate change, according to our new BNP Paribas climate adaptation readiness scores. • Some of the weakest scores are in south Asia, as well as in parts of sub-Saharan Africa and Latin America. • Agriculture’s exposure to water stress is a potential source of global inflation volatility. • In the short term, a potentially strong El Niño episode might keep food prices elevated. • In the medium term, without sufficient adaptation, the agricultural sector might suffer unexpected losses and cost pressures due to climate change. • EM governments face the prospect of responding to more frequent food supply shocks and investing in climate adaptation against the backdrop of severely depleted fiscal capacity.For more information, please refer to : https://bnpp.lk/EyODgb For country-specific disclaimers and legal notices, please refer to https://globalmarkets.bnpparibas.com/gm/home/Markets_360_Country_Specific_Notices.pdf   Hosted on Ausha. See ausha.co/privacy-policy for more information.