Over 90% of big firms at risk from climate hazards

The Committee on Banking Supervision has published answers to frequently asked questions to clarify how climate-related financial risks can be taken into account in existing Pillar 1 standards.

Physical climate risks like extreme weather and prolonged heat waves are projected to harm the assets of almost all major companies by the 2050s, data from S&P Global’s sustainability unit shows.

If global emissions aren’t reduced, S&P Global Sustainable1’s new dataset estimates that 92% of the world’s biggest firms have at least one asset that will be highly exposed to physical climate risks by midcentury. This will climb to 98% by the 2090s. Over one-third of top companies have an asset that could fall in value by 20% or more by the 2050s because of physical risks. This subset includes more than 70% of leading utilities, energy, and materials businesses in the S&P Global 1200 index.

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