While companies have made steady progress reporting on how their operations impact the environment and what steps they are taking to reduce their carbon footprints, only a select few industries have looked at how climate change may impact them.
Those at the forefront of such dangers—namely, extractive and utility industries—have started providing numbers based on scenario analyses in response to investor demand. However, relatively little movement has been made so far by companies in general to examine and disclose the financial risks that climate change may have on their own underlying business, and regulators and investors are keen to address the omission.
