New analysis identifies top targets for shareholder engagement on physical climate risks
Four Twenty Seven, the leading provider of climate risk intelligence for financial markets, today released a new report on how shareholders can engage with corporates to mitigate their exposure to physical risk of climate change. The impacts of a changing climate pose significant downside risk for companies, a risk bound to increase as the climate continues to degrade. At present, investors are likely to become aware of exposure to financial damages from extreme weather events only after they have occurred. This report, the first in its kind, provides tools for both investors and corporations to identify targets for corporate engagement on physical impacts of climate change.
“Corporate engagement is a critical tool to build resilience in investment portfolios” said Emilie Mazzacurati, Founder & CEO of Four Twenty Seven. “Investors can help raise awareness of rising risks from climate change, and encourage companies to invest in responsible corporate adaptation measures,” she added.
The report shows how weather-related disasters can help identify vulnerability for a company. “One example we point to in the report is PepsiCo and how water stress is likely to cause significant headaches for them moving forward,” Mazzacurati said. “PepsiCo scored a 78 out of 100 on our water stress score. This is just one example of major corporations who have significant risk for climate change ahead of them but may not have not built it into their plans. With our climate risk scores investors and corporations can do just that.”
The report goes further and lays out strategies to identify engagement targets, including a list of top 10 companies with highest exposure to physical climate change amongst Climate Action 100+. The report also includes detailed questions investors can ask corporations to better understand their exposure and influence companies to better manage their risks and invest in resilience.
A full copy of the report can be found via this link.