Corporate climate risk is all about turning a profit, not fixing the problem

Climate change poses a major threat to the future of humanity. Extreme weather, rising seas, ocean acidification and biodiversity collapse will undermine many of the systems on which we depend. We’ve even seen a recent example of this, with South Australia’s storm and blackout illustrating the vulnerability of our society to extreme weather.

Risk has become a central construct for how businesses should respond to climate change. As Hank Paulson, former Secretary of the US Treasury has argued, “climate change is not only a risk to the environment but it is the single biggest risk that exists to the economy today”.

The G20 is currently investigating how companies are exposed to climate risk, and how they disclose that risk to consumers.

However, instead of dealing with the larger problem of rapid and systemic decarbonisation, most businesses construct climate risk solely through the lens of profitability and market opportunity.

Read the piece on The Conversation by the Professor of Organisational Studies at the University of Sydney, Christopher Wright, and the Professor of Management in the Newcastle Business School at the University of Newcastle, Daniel Nyberg - “Corporate climate risk is all about turning a profit, not fixing the problem.”