Our industry is engaged in an important dialogue to improve the efficiency and resilience of real assets through transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
“The New Cost of Doing Business” examines how physical climate risk is becoming a material driver of business costs and enterprise value. The report shows that climate-related exposures, including floods, wildfires, heat, and other hazards, are increasingly affecting corporate operations, earnings, and asset valuations. It highlights how rising risk translates into higher operational costs, increased insurance and financing pressures, and impacts on market valuation.
The research underscores the importance of integrating forward-looking climate risk data into business planning and financial decision-making to protect value and maintain competitiveness in an environment where climate risk is now a significant cost factor.
This article was written by First Street. Learn more about First Street here.
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