Finance
IMF Warns Investors: You're Not Ready for Climate Change
- Fund calls for mandatory disclosure of company climate risks
- Climate stress tests could help firms measure their exposure
The Sydney Opera House and Sydney Harbour Bridge shrouded in haze from bushfires, in Sydney, Australia, in Dec. 2019.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Investors worldwide are underestimating the financial risks from climate change, and companies need to start disclosing their exposure, according to the International Monetary Fund.
As global temperatures rise, severe climate events may impact companies owning assets in areas hit by drought, floods, wildfires and storms, the fund said Friday in the latest chapter released from its Global Financial Stability Report. At present, asset prices fail to reflect the risk of extreme weather events that may cost $1 trillion annually starting in 2050, the IMF said.