How will the physical risks of climate change affect companies? (Schroders)

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The potential costs to some companies of insuring their assets against the impact of climate change could equate to more than 4% of their market values, according to our new physical risk assessment.

This new analysis – the latest addition to Schroders’ climate change investment capabilities – focuses on the often-overlooked risks posed to bricks and mortar.

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It is based on the premise that – in theory – companies could insure themselves against the physical damage they may sustain from climate change-induced environmental changes, such as extreme weather events.

Our physical risk framework – which we have applied to over 10,000 companies globally – calculates what businesses would have to pay to insure their physical assets against hazards caused by rising global temperatures and weather disruption.