We find that 4.5 billion people, more than half the global population, are exposed to one of these four weather events. Of those exposed, 2.3 billion are poor at the $6.85 line, and 390 million are extremely poor (they live on less than $2.15). This means that about a quarter of a million people that are extremely poor are not exposed to the direct impact of extreme weather events. However, these households may be susceptible to experiencing less severe events or the indirect impact of extreme weather events.

**Table 6: Number of people exposed and poor to extreme weather events (millions)**

||Total<br>population<br>|Share of total<br>population (%)|Population exposed in<br>countries with<br>|Exposed<br>|and poor<br>|
|---|---|---|---|---|---|
||exposed||poverty data|$2.15|$6.85|
|Flood|988|13|962|57|424|
|Drought|1,412|18|1,383|179|723|
|Heatwave|2,793|36|2,737|242|1,653|
|Cyclone|634|8|601|24|219|
|Anyshock|4,460|57|4,335|389|2,276|

Notes: Poverty estimates are available for 1,733 subnational regions in 168 economies, accounting for 97% of global population. The total number of poor people is 692 million at $2.15 and 3,560 million at $6.85 when overlaying 2019 subnational poverty rates with 2020 gridded population data.

Exposure by region and income classification is presented in Table 7. South Asia (SAR) is the region whose population is most exposed to shocks, with 87 percent exposed (driven by very high rates of exposure to heatwaves). East Asia and the Pacific (EAP) follows. Exposure is lowest in Europe and Central Asia (ECA) and Latin America and the Caribbean (LAC), but even in these regions a third of the population is exposed. Important differences in exposure are present across regions. Drought is the most predominant shock in ECA and in Sub-Saharan Africa (SSA). In SAR and the Middle East and North Africa (MENA), exposure to heatwaves is the highest. Exposure varies less across type of shocks in LAC and EAP.

**Table 7: Number of people exposed, by region and income category** **<u>(millions)</u>**

||Total<br>population|Flood|Drought|Heat|Cyclone|Any shock|Any shock (%<br>ofpopulation)|
|---|---|---|---|---|---|---|---|
|_Region_||||||||
|East Asia & Pacific|2,073|407|322|810|247|1,308|63|
|Europe & Central Asia|494|36|117|18|0|155|31|
|Latin America & Caribbean|628|56|96|48|35|205|33|
|Middle East & North Africa|402|47|43|93|0|156|39|
|Other High Income|1,029|104|159|101|182|452|44|
|South Asia|1,829|246|332|1,481|132|1,589|87|
|Sub-Saharan Africa|1,119|66|314|186|5|471|42|
|_Income group_||||||||
|High|1,155|116|198|101|184|500|43|
|Upper-middle|2,867|430|449|841|188|1,450|51|
|Lower-middle|2,939|377|561|1,683|214|2,110|72|
|Low|614|39|175|112|15|276|45|
|_FCV_|757|66|176|255|12|389|51|

Notes: Regions use the Poverty and Inequality regional classification, which differs from the regional classification used by the World Bank. Some economies, mostly high-income economies, are excluded from the geographical regions and are included as a separate group referred to as “other high income” (or “industrialized economies” or “rest of the world” in earlier publications). <u>https://datanalytics.worldbank.org/PIP-Methodology/lineupestimates.html#regionsandcountries. See annex for numbers using</u> World Bank geographic regions. Income groups are for FY21 (data for calendar year 2019).

26