Climate Disasters on the Horizon, Most Companies Unprepared…And Possible to Blame
While all eyes are on the COVID-19 pandemic, climate change remains an existential threat to the planet – and most companies are unprepared for how it will impact them.
A natural disaster could conceivably cause heavy damage to a company’s bottom line, and a recent FM Global survey of hundreds of CEOs and CFOs revealed that most of them – 75% – know their companies are exposed to climate risk. But among those company heads, only 23% said their firms were prepared for the financial impacts of a changing climate, while 82% said their companies have little control over such an impact.
The top three climate risks that concern them most are also those that could have the most negative effect on their company’s financials:
But as for whether the board of directors should be held accountable, there’s notable disagreement:
But as for whether executive management should be held accountable, the responses were more clear: