Is being wealthy beneficial during climate crisis?

FORBES recently published the World’s Billionaires List for 2024, which showcases a rise in billionaires — 2,781 billionaires in total, 141 more than in 2023 — with a total wealth of $14.2 trillion.

Among the richest individuals in the Philippines are Manuel Villar, the real estate magnate with a net worth of $11 billion (ranked 190th); Enrique Razon, the ports tycoon with a net worth of $10 billion (ranked 224th); and Ramon Ang, the food and beverages king with a net worth of $3.5 billion (ranked 920th).

Other notable individuals on the list include Hans Sy ($2.6 billion, ranked 1286th); Henry Sy Jr. ($2.5 billion, ranked 1330th); Herbert Sy ($2.5 billion, ranked 1330th); Lucio Tan ($2.5 billion, ranked 1330th); Harley Sy ($2.4 billion, ranked 1380th); Teresita Sy-Coson ($2.3 billion, ranked 1,438th); Elizabeth Sy ($2.1 billion, ranked 1,545th); Andrew Tan ($2 billion, ranked 1,623rd); Tony Tan Caktiong ($1.4 billion, ranked 2,152nd); Lucio Co ($1.2 billion, ranked 2,410th); Susan Co ($1.1 billion, ranked 2,545th); Lance Gokongwei ($1.1 billion, ranked 2,545th); and William Belo ($1 billion, ranked 2,692nd).

The Philippine Institute for Development Studies reports that a monthly income of at least P219,140 is considered wealthy for Filipinos, but less than 1 percent of the population earns this amount. This means that only around 117,000 Filipinos out of 118.8 MILLION CAN BE CLASSIfiED as rich.

Considering 57 percent of Filipinos are considered poor, the question arises: Is being wealthy beneficial during the climate crisis? It is a complex and subjective question, dependent on individual values, ethical considerations and the broader societal context.

One perspective suggests that wealth does not necessarily protect individuals from the impacts of the climate crisis. In fact, wealth can bring unique challenges and responsibilities. Rich individuals often have investments in assets like real estate and businesses that are vulnerable to climate change effects like rising sea levels, extreme weather events AND WILDfiRES. THESE ASSETS MAY be at high risk of damage or loss, leading to significant financial setbacks.

Moreover, wealthy individuals tend to lead lifestyles of high consumption and carbon emissions, which contribute to greenhouse gas emissions. As efforts to address climate change intensify, they may feel the pressure to minimize their carbon footprint, which could require substantial changes to their way of life and consumption patterns.

The climate crisis has the potential to worsen social and political instability, leading to disruptions in markets, supply chains and geopolitical relations. Rich individuals may face INCREASED RISKS OF UNREST, CONflICT and regulatory changes that could affect their wealth and privilege.

Equity and justice

It’s important to recognize that the climate crisis raises ethical questions about intergenerational equity, environmental justice and global solidarity. Rich individuals may face scrutiny and criticism for their contribution to unsustainable consumption patterns and exacerbating climate change. This is particularly concerning when considering the disproportionate impacts of climate change on marginalized communities and future generations.

Despite these challenges, being wealthy during the climate crisis also presents opportunities for individuals to demonstrate leadership and drive positive change. By leveraging their resources, INflUENCE AND NETWORKS, THEY CAN support innovative solutions, invest in renewable energy and sustainable infrastructure and technologies, and advocate for policies that promote environmental sustainability and social equity.

Wealthy individuals have the POTENTIAL TO MAKE A SIGNIfiCANT impact by investing in climate adaptation measures and supporting research, innovation and advocacy efforts aimed at mitigating and adapting to the impacts of climate change.

Navigating wealth during the climate crisis requires individuals to balance the risks to their assets and lifestyles with the responsibility to contribute to solutions. It’s important to note that personal actions, corporate connections or donations to climate change organizations do not cancel out the total emissions. The focus should be on using wealth to access resources, capital, technology and infrastructure that can effectively address the challenges posed by climate change.

Wealthy individuals have the moral and ethical obligation to USE THEIR RESOURCES AND INflUENCE to contribute to the common good by promoting environmental sustainability, social equity and intergenerational justice.

It is important to acknowledge that the benefits of wealth are not equally distributed. Socioeconomic disparities can exacerbate vulnerability to the climate change impacts, particularly among marginalized communities and low-income populations. Although wealth can provide SOME PROTECTION AGAINST SPECIfiC climate risks, it doesn’t guarantee immunity from the wider consequences of environmental degradation, ecosystem collapse and social instability.

While wealth can provide opportunities for positive impact AND INflUENCE, IT ALSO CARRIES REsponsibilities and considerations regarding inequality, accountability and systemic change. The actions and choices made by AFflUENT INDIVIDUALS IN RESPONSE to the climate crisis will have a SIGNIfiCANT IMPACT ON GLOBAL EFforts to address this existential challenge. The author (ludwig.federigan@ gmail.com) is the founding executive director of the Young Environmental Forum and a director of Climate Tracker Asia Inc. He completed a climate change and development course at the University of East Anglia (UK) and an executive program on sustainability leadership at Yale University (USA).