This article was originally posted on the World Economic Forum.
“…Companies have been reporting the economic risks they face for decades and they often have a statutory responsibility to do so. Generally, the economic risks include the possible negative outcomes that may affect different “risk targets”, including the capital resources, net sales, revenues, income from continuing operations and future financial conditions among others. Climate change is predicted to have possible negative outcomes that could affect any or all of these risk targets.
The Task Force stresses that there are both physical risks associated with climate change – those related to extreme weather events and changes in weather patterns – and risks associated with the transition to a low-carbon world.
The latter include business risks such as new regulations on greenhouse gas emissions, upfront costs of transitioning to lower emissions technology, uncertainty in market signals and changing consumer preferences. A series of issues that companies will not be able to ignore any longer…”
Read on at: the World Economic Forum.