Australian shareholders should be told of climate risk to profits, says thinktank

Australian companies need to start developing sophisticated scenario-based analyses of climate risks, and incorporating them into their business outlooks so shareholders know how climate change will affect profitability, a thinktank has said.

Businesses in Australia have been urged to incorporate climate
 risks into their outlooks so shareholders can see the potential impacts.

However, the Centre for Policy Development (CPD) said companies needed to do so in a standardised way, so investors and regulators were able to easily understand economy-wide risks to whole industries.

The progressive thinktank urged Australia’s biggest businesses to use the Paris climate agreement as the centrepiece for their scenario planning, saying it provided a credible, long-term anchor for policies that limit global warming to well below 2C.

Read the story on The Guardian by Gareth Hutchens - “Australian shareholders should be told of climate risk to profits, says thinktank."