Yes, climate change threats pose a significant risk to businesses and can affect them in various ways. Physical climate risks can cause damage to infrastructure, and extreme weather events can disrupt supply chains. Climate transition risks, such as changes in regulations, policies and market preferences, can impact the demand for products and services.
Businesses may also face financial risks as investors and leaders increasingly scrutinize their exposure to climate change risks. This may lead to higher borrowing costs, lower valuations and reduced access to capital.