Companies See Climate Change Hitting Their Bottom Lines
Global Companies Expect Financial Impacts Within 5 Years
Climate change has moved from a social and environmental issue to a direct financial concern for many companies, based on a Global Climate Change Analysis from CDP. Learn more here.
Here's Why Climate Action Matters
Climate risks are expensive
- Global companies report almost $1 trillion at risk from climate impacts, with many likely to hit within the next 5 years
- Companies report potential $250 billion in losses due to the write-offs of assets
- Changes in consumer demand, technology and products in a low-carbon economy can be competitive risks (or opportunities)
Climate change presents opportunities
- $26 trillion in direct economic gain possible from climate action through 2030 according to 2018 report from The New Climate Economy
- 72% of Millennials are willing to pay more for sustainable products - up from 55% in 2014 (Nielsen Research, 2015)
- Product and technology innovation, expanding markets and resource efficiencies are profit opportunities
Stakeholders expect accountability
- 86% of Millennials are interested in sustainable investing - that means almost all Millennials, a group that is set to inherit $30 Trillion in assets
- Investors are increasing pressure for disclosure of climate-related risks and opportunities
- Customers are demanding sustainable business practices
Three-tiered approach:
Strategy
Seek stakeholder input on how a low-carbon economy impacts your business strategy.
Innovation
Discover new markets, new products and technologies to give you the competitive edge.
Investor readiness
Know the risks and opportunities that climate change presents and investors expect you to address.