Transcript:
For companies around the world, the financial risks of climate change are growing fast.
As seas rise, coastal factories face a growing risk of flooding. As droughts intensify, crops could become more expensive to grow. And as storms and fires get more extreme, insurance premiums are rising.
Madera: “We should be talking about climate change impacts as being business impacts.”
That’s Sherry Madera of CDP, a nonprofit that helps companies worldwide measure and disclose data about their environmental impacts and risks.
According to a CDP report, the roughly 4,000 large companies that disclose data to the group identified climate risks totaling more than $6 trillion.
Madera: “And of course, that is shocking in terms of its size.”
But she says companies can invest in solutions that reduce these risks.
For example, flood-proofing buildings, relocating facilities, or planning for supply chain disruptions could make businesses less vulnerable to climate change impacts.
According to the CDP report, taking these and other steps would cost about $1.4 trillion.
So acting to reduce climate risks may be costly in the short-term, but the long-term cost of inaction could be far greater.
Reporting credit: Sarah Kennedy / ChavoBart Digital Media
