In The News
Investors grapple with physical climate risks, long-term impacts
Publish Date: 01/14/2022
News Source: Pensions & Investments
In the U.S., the $267.8 billion New York State Common Retirement Fund, Albany, and Impax Asset Management Group PLC have joined forces to ask S&P 500 companies to identify the location of key facilities and buildings where climate change events could negatively affect operations and in turn, financial results. [They are] learning that companies are not seriously considering, let alone planning for, the physical risks of climate change, and investors are dealing with a lot of unpriced value risk.
Entergy cut to Sell equivalent at Morgan Stanley on climate change risk
Publish Date: 01/06/2022
News Source: Seeking Alpha
Morgan Stanley … downgrades Entergy to Underweight from Equal Weight with a $106 price target, citing “concerns about customer bill pressure and negative regulatory responses to physical damage from climate changes… As the frequency and magnitude of storm damages persists, the impact of the securitizations will become apparent in customer bills, which will inhibit longer-term capex plans and thus lower future EPS growth.”
How climate change is increasing business solvency risk
Publish Date: 12/15/2021
News Source: Firstpost
Extreme weather events or natural disasters like floods, hurricanes, wildfires, etc., and the resultant damage to property pose a physical risk to the survival of businesses. In such scenarios, businesses are forced to divert their scarce resources towards the reconstruction or replacement of infrastructure… Apart from direct value losses and losses of capital assets of the business, there can be other spill-over effects like impact on cost and availability of insurance and reinsurance to businesses…
