A newly released CDP Financial study maintains worldwide companies representing nearly $17 trillion in market capitalization have valued the climate risks to their businesses at almost $1 trillion.
“The goalposts for climate action have never been clearer for companies,” Nicolette Bartlett, CDP’s director of Climate Change, said. “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.”
The analysis also determined that only half of the fossil fuel companies in the Global 500 provided any financial figures for the substantive risks and opportunities identified; power companies represent one of the few industries where the costs to manage risks outweigh their impact on the business; and disclosures centered around the substantial costs associated with updating existing power plant infrastructure.
“Following the recommendations of the UN’s IPCC report, our collective response to climate change is more urgent than ever, and it is clear that corporate action cannot be delayed,” Bartlett said. “So it is hugely encouraging that companies are reporting that the potential value of climate opportunities far outweigh the costs of investing in the transition.”
The report determined over 80 percent of firms see major climate impacts, including extreme weather patterns, rising global temperatures, and increased pricing of greenhouse gas emissions.