Capitalist are concerned about the Climate Change

In a new report, it found that the weather has become more unpredictable and it is the big business that pays the price. The companies are now increasingly talking about the climate change which has impacted their bottom line and with weather and climate which is more common topics during the discussion in the earnings calls of S&P 500 companies.

The report has made it clear that the financial impacts of the climate change are now starting to become apparent for the big companies. As per the S&P Global Ratings, it was reported released on Tuesday, and it is with climate change and it severe with the weather events which increasingly in making of headlines, lenders and in institutional investors and it becomes more interested in the events and they have to hit the bottom line of companies which is around the world.

The report was jointly conducted by S&P 500 and climate risk management specialist Resilience Economics, 73 companies on S&P 500 which was publicly disclosed the effect on earnings from the weather events for the 2017 financial year. They have quantified the effects which were only 18, and this was on an average of about 6 percent impact in earnings, and it sounds small.

The effects of the climate risk and the severe weather events are said to be on corporate earnings, and it is meaningful, as said by the report. It may feel unmitigated, and the financial impact can be increased over the time as the climate change makes the disruptive weather events and it is more frequent and severe.

The companies now have to perform a difficult calculus, and it will help in understanding the financial impact of weather events and it can affect wide-range aspects of the business. As per S&P, more companies are now expected to report about the climate change issues and their effects on overall cash flow which has become more prominent in present time.

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