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Sunday 24 June 2018


Impact of weather events on corporate earnings quantified

Written by staff reporter

Evidence of the impact of climate risk is found across all sectors, geographies, and seasons, according to a study carried out by S&P Global Ratings. The average materiality on earnings for the small number of companies that quantified it is a significant 6%.

As such, climate risk is a prevalent topic of discussion for the CEOs of publicly traded companies, and management teams are becoming increasingly accountable for understanding and mitigating the impact of climate risk.

S&P Global Ratings and climate risk management specialist Resilience Economics have released a co-authored report determining the prevalence and materiality of climate risk for companies in the S&P 500 index.

'The Effects of Weather Events on Corporate Earnings are Gathering Force', conducted with climate risk specialists Resilience Economics, found that in financial 2017, 73 companies (15%) on the S&P 500 publicly disclosed an effect on earnings from weather events, but only 18 companies (4%) quantified the effect.

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