A group of the world’s biggest companies representing nearly US$17 trillion in market capitalization have valued the climate risks to their businesses at almost US$1 trillion – with many likely to hit within the next 5 years. This is revealed in a groundbreaking new report published today by CDP, which runs the global disclosure system for environmental information.
Over 80% see major climate impacts, including extreme weather patterns, rising global temperatures and increased pricing of greenhouse gas emissions. Around US$500 billion of costs are rated as likely to virtually certain, with higher operating costs linked to legal and policy changes making up a significant risk.
Companies report potential US$250 billion in losses due to stranded assets – these include fossil fuel assets that may no longer offer economic returns as a result of market shifts associated with the transition to a low-carbon economy, or companies that are significantly exposed to the physical impacts of climate change.
