Listed companies have insufficient regard for the climate risks they run. Companies in non-financial sectors in particular are lagging behind in this area, says accounting and consulting firm KPMG after research among companies with an AEX listing.
This includes, for example, the physical risks of extreme weather and its consequences, such as floods, hurricanes and droughts. Companies also often underestimate the potential risks that the transition to a greener economy entails.
According to KPMG partner Wim Bartels, the lack of a good long-term perspective can have significant financial consequences, such as loss of income, rapidly falling assets and higher operational and liability costs.
Companies that do well are companies in the oil and gas sector. “For example, they are well prepared for the potential impact on strategy, reputation and liability. And companies are aware of the impact of CO2 pricing and the fact that the way they deal with the climate can impact consumer preferences” says Bartels.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.