Climate change poses financial risks
Climate change poses financial risks
ESG Reporting: Transparency and proof of your sustainability strategy
Lay the foundation for sustainability reporting obligations from 2024 onwards
Back to HSO.com
Page 1/5
Microsoft and HSO enable you to manage your business sustainably
Climate change poses financial risks: natural disasters and global political factors, supply shortages and failures, influence on the value of companies and share prices, monitoring of risks and disclosure of information. In this whitepaper, we take a closer look at these and how to manage them.
- 1
Natural disasters and global political factors
Climate change affects the security of every industrial sector through physical risks - especially extreme weather events. The influencing factors of physical risks and transition risks* influence economic activities.
- 2
Delivery bottlenecks and failures
These risks also affect the resilience of companies’ business models in the medium to long term. This is particularly true for companies whose business models depend on sectors and markets that are particularly vulnerable to climate and environmental risks.
- 3
Influence on the value of companies and share prices
These effects can occur directly (e.g. in the form of lower corporate profitability or loss of asset value) or indirectly in the form of macroeconomic changes.
- 4
Monitoring risks and disclosing information
The Corporate Sustainability Reporting Directive - passed by the EU in November 2022 - changes the scope and nature of companies' sustainability reporting. This significantly expands existing regulations for non-financial reporting.
* Management must evaluate different divisions and industries in which they operate. It is important to consider what financing needs to be developed in the transition to a zero-carbon economy.