Top companies facing massive climate fuelled losses

215 of the world’s largest companies, representing a combined market capitalisation of over US$17 trillion, are facing over US$1 trillion in loses as a result of climate change, a new report has found.

Climate change fuelled risks to businesses, many of which are likely to take effect in the next five years, could also see US$250 billion in loses due to write-offs of assets, the report from climate research charity CDP has found.

The report found that over 80% of the businesses reported on in the study view major climate impacts, including extreme weather patterns, rising global temperatures and increased pricing of greenhouse gas emissions, as significant risks.

“Our analysis shows that there are a multitude of risks posed by climate change, including impaired assets, market changes and physical damages from climate impact, as well as tangible impacts to business bottom lines,” Nicolette Bartlett, Director of Climate Change, CDP said.

But the group also reported cumulative gains from realising business opportunities related to climate change at US$2.1 trillion, with the majority on track as almost certain. These opportunities include increased revenue through demand for low emissions products and services (such as electric vehicles), shifting consumer preferences and increased capital availability as financial institutions increasingly favor low-emissions producers.

The full report covers 6937 companies who reported data to CDP in 2018, including a sample based on the 500 biggest global companies by market cap, 366 of which reported to CDP.

The full report can be found here

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