Taiwan's devastating drought shows the urgency of climate risk management

Investors need to consider climate change

Situated in Taiwan's mountainous central region, Sun Moon Lake is the nation's largest body of water and a popular tourist attraction hosting open water swimming, lake-side hikes and tourist ferries.

But a few weeks ago the ferries stood still, and much of the lake was reduced to a dust bowl, with grass even growing on the parched lake floor. Sun Moon lake became a symbol of Taiwan's devastating drought, which over 18 months threatened the lives and livelihoods of many following unusually light rainfall and unusually few typhoons. The lack of water quickly exposed the vulnerability of many key supply chains. Semi-conductor manufacturers were forced to truck in vast quantities of water from other regions to maintain chip production.  'Warning bell' as shortage intensifies boom i...