Businesses must act now to address growing climate risks or face steep financial losses, according to two new reports released today by the World Economic Forum. Companies that delay could see up to 7% of annual earnings wiped out by 2035 an impact akin to Covid-19-level disruptions every two years.
Companies in energy-intensive sectors that fail to decarbonize face mounting transition risks as global climate regulations tighten, with carbon pricing alone potentially slashing up to 50% of earnings by 2030. Green markets are set to grow from $5-trillion in 2024 to $14-trillion by 2030, with early movers gaining competitive advantages in sustainable solutions and adaptation offerings.
“By holistically and systematically addressing climate-related risks and opportunities, businesses can build stronger and more sustainable operations, safeguarding and restoring ecosystems, and fostering long-term economic and social resilience in an increasingly complex and uncertain world,”Leading scientists, including Johan Rockström of the Potsdam Institute for Climate Impact Research, warn that five Earth systems are nearing irreversible tipping points.