It only takes one major climate-fueled disaster to crash a business, or even the whole economy. Climate change threatens every industry, affecting every sector. However, it manifests differently in each one.
One study predicts that in 2022, floods will cause $13.5 billion in commercial structural damage, along with another $26 billion in lost output, 3 million lost days of building operation and $23 billion in costs from the indirect impacts of days when businesses can’t open.
Catastrophes’ adverse economic ripple effect has prompted investors to ask the Securities Exchange Commission to mandate climate data disclosure. However, critics of the effort erroneously claim uniform disclosure would offer little utility for investors. The opposition’s argument for lack of utility is a misguided perception that climate risk information is irrelevant to maximizing shareholder value.