Major corporates at risk from climate change
From The AgeÂ
HALF of Australia’s biggest companies are risking cost blow-outs, an increased regulatory burden and reputational damage from climate change, according to an international report.
The report from the London-based Ethical Research Investment Services and the Centre for Australian Ethical Research in Canberra found that 48% of Australia’s largest 200 companies are classified as having a high or very high potential impact from climate change. Collectively, these companies account for more than $545 billion in market value.
It also found that Australian companies were doing less about climate change than their global counterparts, with a third of global companies deemed to be at high risk. While one in two big Australian companies were at risk, the global data showed that 35.6% in the global 300 were assessed as being in that camp.
Alarmingly, the report found that more than half (53%) of companies in the S&P/ASX200 were considered to have unmitigated risk. In other words, they had not taken sufficient measures to fix the problem and reduce their riskiness for investors. These businesses combined are worth $605 billion.