The Gap Between Climate Shock and Recognition
AT&T filed many weather-related 8-Ks before it finally named hurricanes as a business risk in its annual report. It isn't an outlier: more than 80% of companies acknowledge physical climate risk, but fewer than a third lay out what that means for their business. With a record-breaking El Niño set to peak in December, host Mike Disabato talks with MSCI's Jasmina Buresch about why it can take a second or third hit before companies disclose anything specific, how to tell a critical facility from an office where everyone could simply work remotely, and why investors shouldn't wait for company disclosure to catch up with underlying exposure. The episode discusses findings from MSCI’s new research paper, “The Price of Not Knowing.”
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The Price of Not Knowing
Companies often recognized physical climate risk only after a shock. Our analysis shows how asset-level modeling can help investors identify exposure earlier — along with any adaptation opportunities.
Turn physical risks into financial insights
Analytical tools and data from MSCI designed to support investors, banks, insurers and other financial institutions in assessing and managing physical risk.
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