Climate information is at risk of being misconstrued and used inappropriately in financial reports and has the potential to expose businesses to significant risk, according to a new paper by Australian researchers.
Climate information is at risk of being misconstrued and used inappropriately in financial reports and has the potential to expose businesses to significant risk, according to a new paper by Australian researchers.
The findings are published in the prestigious journal, Nature Climate Change, and calls on businesses, the financial services industry and regulators to work more closely with climate scientists.
Regulators and governments – both domestic and international - are increasingly requiring that businesses assess and disclose their vulnerability to the physical effects of climate change, for example, increased drought, bushfires and sea level rise.
"People are making strategically material decisions on a daily basis, and raising debt or capital to finance these, but the decisions may not have properly considered climate risk," said lead author Dr Tanya Fiedler from the University of Sydney Business School.
Read more at University of Sydney
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