A new report shows that climate change is posing greater risk for investors than previously thought.

Published by the Investor Group on Climate Change (IGCC) in conjunction with the Australian National University (ANU), the report examines the risks and opportunities posed by climate change.

“By assessing emissions exposures and expected climate risks, investors can judge how companies will be placed to compete in a low carbon world and a high climate risk world,” said Nathan Fabian, Chief Executive of the IGCC.

“Investors can use the ANU research to reset their thinking about impacts on future company earnings and to engage more deeply with companies on their responses to climate change.”

Based on a likelihood of exceeding two degrees of global warming, investors in Australian industry can expect more intense cyclones, higher average temperatures, less water availability, more hot days, increased storm surges and more hailstorms to affect the operations of companies and assets.

At the same time, information on ways to adapt to climate impacts and reduce emissions and energy intensity are better than ever. Energy efficiency measures will often pay back investors within three years and can reduce energy use by industries such as property by as much as 50%.

“Many companies have been considering climate risks for some time. Investors should reconsider how current and impending climate change impacts will influence company prospects, and build that into their valuations,” Mr. Fabian said.

The separate reports can be found here