Trevor Allen, Head of Sustainability Research  Jeffrey Schultz, Chief CEEMEA Economist Sumati Semavoine-Jain, Sustainability Research Analyst   Niccolo Carrara, Emerging Markets Economist BNP 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