The global sports economy, worth around $2.3 trillion annually, faces an ‘unprecedented challenge from climate change‘, the World Economic Forum has said.
A new report published by the Forum, Sports for People and Planet, notes that the sports economy – which encompasses everything from grassroots kickabouts in a local park to the FIFA World Cup – is experiencing ‘robust’ growth, and is set to be worth $3.7 trillion by 2030 and $8.8 trillion by 2050.
However, escalating environmental challenges, along with rising levels of physical inactivity, could potentially erode $1.6 trillion of that annual revenue by the middle of the century.
Extreme weather
As the report, which was produced in association with Oliver Wyman, found, extreme weather disrupted more than 2,000 global events between 2004 and 2024, according to a study in the International Journal of Disaster Risk Reduction. Around a fifth of these were sporting events.
Recently, at the FIFA World Club Cup, which took place in the US last year, several matches were delayed due to extreme weather events.
‘Physical climate risks, including extreme weather events and air and water pollution, are impacting everything from event scheduling and athlete health, to the infrastructure and natural settings of sports,’ the World Economic Forum noted. ‘Meanwhile, essential ecosystem services, such as freshwater resources critical for sporting goods production and sports tourism, are under increasing strain.’
Other findings from the report include that one in five UK sports stadiums are likely to be affected by fluvial flooding by 2050; just ten countries will have enough snow to host the Winter Olympics by 2040; and as many as 40% of participants failed to complete the women’s marathon at the World Athletic Championships in Qatar – all due to the impact of climate change.
The sports economy itself is also contributing to climate change, producing an estimated 450 million tonnes of emissions annually, the report noted.
Addressing the risks
The World Economic Forum identifies three pathways for addressing these risks while also strengthening the sports economy, including championing resource stewardship (using energy, water, food, and materials efficiently to minimise environmental impact), placing sport at the heart of cities, and catalysing purpose-driven capital flows, enabling the sports economy to deliver health, environmental and financial benefits to communities.
‘Bold leadership, partnerships and strengthened governance can help the sports economy to reinforce the socio-environmental systems it depends on, boost profitability and participation, and reduce its environmental footprint,’ the World Economic Forum added. Read more here.
