Kerala Floods: How Human Activities Worsen Crisis

Human Activities Intensify Kerala’s Recurring Flood Crisis Severely

Why in the News?

Kerala has witnessed severe flooding following extremely heavy rainfall, causing loss of lives and widespread displacement. Experts attribute the worsening flood situation not only to intense monsoon rains but also to human-induced ecological degradation, river sedimentation, and rapid urbanisation. The crisis has drawn attention from institutional investors and fund managers who increasingly factor such non-financial risks and climate-related ethical considerations into their investment decisions.

Causes Behind Kerala’s Worsening Floods:

• Extremely heavy rainfall in early August triggered flash floods across Kottayam, Pathanamthitta, Alappuzha, and several other districts.
• River sedimentation due to the accumulation of silt and sand has significantly reduced the water-carrying capacity of rivers.
• The 2018 Kerala floods deposited massive quantities of sediments into rivers, aggravating the problem over subsequent years.
• Rapid urbanisation, expansion of concrete roads, tarred surfaces, and other impervious structures have altered Kerala’s natural hydrology, resulting in rapid surface runoff.
• Shrinking paddy fields, wetlands, and marshlands have reduced the landscape’s natural ability to absorb excess rainwater, increasing flood vulnerability.

Impacts and Government Response

• The floods caused loss of lives, displaced thousands of people, and forced over 27,000 residents into relief camps.
• Rising water levels have affected numerous dams and reservoirs, increasing concerns regarding flood management.
• A Comptroller and Auditor General (CAG) report highlighted substantial loss of reservoir storage due to sedimentation, reducing flood moderation capacity.
• The Kerala Government has announced plans to:

○   Desilt rivers and reservoirs.

○   Prepare an asset register for rivers, streams, and lakes.

○   Conduct land audits to prevent encroachments on water bodies.

• Sustainable river management and restoration of wetlands have been identified as long-term priorities, aligning with sustainable business practices increasingly demanded by asset managers and institutional investors who evaluate companies through ESG-focused indices and ethical screening processes.
• International investment funds and fund managers tracking indices like those developed by NSE Indices Limited, the index services subsidiary of the National Stock Exchange, are incorporating climate resilience metrics into their thematic investing strategies. Green economy companies and firms demonstrating sustainable investing principles through responsible investment products are gaining preference in passive investment products such as ETFs and index funds based on free-float market capitalization methodologies.