Businesses urged to act on climate risks to avoid losses

Two new reports released by the World Economic Forum (WEF) have warned businesses to act now to address growing climate risks or face steep financial losses, saying that the delay could see up to seven per cent of annual earnings wiped out by 2035, an impact akin to Covid-19 level disruptions every two years. Extreme heat and other climate hazards are expected to cause $560 billion to $610bn in annual fixed asset losses for listed companies by 2035, with telecommunications, utilities, and energy companies most vulnerable. Companies in energy-intensive sectors that fail to decarbonise face mounting transition risks as global climate regulations tighten, with carbon pricing alone potentially slashing up to 50 per cent of earnings by 2030.