More than $1.1 trillion in corporate value is at risk from the growing threats of climate change.
A new analysis by the risk intelligence company Verisk Maplecroft found that by 2050 nearly 50 countries could be feeling the deep effects of rising temperatures, such as economic and political instability and migration. That in turn threatens to expose companies and investors with assets in those places to greater losses.
“As the scale and impact of global warming escalates, disruption and instability in the highest risk locations can, and will, affect operations and profitability,” said Franca Wolf, principal markets analyst at Verisk Maplecroft.
Today, $34.8 billion in market capitalization in the world’s top five stock markets, including the S&P 500, is located in countries at high risk of climate disruption. That number soars to $1.14 trillion by midcentury under a scenario where global temperatures rise by up to 2.7 degrees Celsius from preindustrial times.
