Climate Change $1.14 Trillion Hits Big Business
The new Malecroft study on companies that have operations in geographical areas suffering from climate change points out that there are many unexpected expenses, some of which are hard to identify. Titled “$1.14 trillion in corporate value located in countries most at risk from climate upheaval,” the authors make the point that “Data from our Climate Hazard and Vulnerability Index (CHVI) reveals that second-order climate risks, such as economic and political instability, poverty, migration and food insecurity could become highly impactful in 48 countries by 2050.” The analysis is based on companies in the world’s five largest stock markets
The CHVI examined data from 198 countries, rated on a scale of 0 to 10. The Philippines had the highest risk, at approximately 6, and Indonesia was at about the same level.
India Problems
The country’s data that should be most concerning to the US is India, rated 3. The authors pointed out that “Significantly, the data shows the rising importance of India to global business, its burgeoning status as an economic superpower, and its high level of vulnerability to climate-related issues. Across the five stock markets, India is home to more than 95% of the assets currently hosted by countries categorised as ‘very high’ risk in the CHVI by 2050.”
India is the world’s largest nation, with a population of 1.44 billion. It has just surpassed China. India recently passed Germany to become the world’s third-largest nation based on GDP of $7.2 billion. However, its economy is growing at 8% annually, while Germany’s growth is flat.
Based on the climate change evaluation, India’s money at risk is $1 trillion, far larger than any other nation’s.
Specifically, Apple has just decided to move its manufacturing from China to India. It is one small example of India’s importance, but it is telling.
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