Climate Risks Projected to Slash Corporate Earnings by 7% by 2035

A recent report from the World Economic Forum (WEF) warns that businesses could face a 7% reduction in annual earnings by 2035 due to escalating climate hazards, Anadolu Agency reported yesterday.

The report, published on Wednesday, December 11, highlights that extreme heat and climate-related disasters may lead to annual asset losses ranging from $560 billion to $610 billion for listed companies.

Industries such as telecommunications, utilities, and energy are particularly vulnerable, with potential disruptions akin to those seen during the COVID-19 pandemic occurring every two years. Energy-intensive sectors may see earnings cut by half by 2030 due to tightening global regulations and carbon pricing.

Investing in climate adaptation is crucial, as every dollar spent could prevent up to $19 in losses. The green market is projected to grow from $5 trillion this year to $14 trillion by 2030, indicating significant opportunities in alternative energy and sustainable products.