Studies criticized for underplaying risks from climate change
( dpa ) - Studies are underestimated the risks to businesses by climate change while emphasizing the opportunities, a consultancy report said Thursday.
"This focus on opportunity over risk is striking in the light of growing consensus on the significant macroeconomic costs of climate change," said KPMG after analyzing 50 previously published reports.
Regulatory risks were the most commonly mentioned, but few studies considered the reputational and litigation risks, said the KPMG findings published in The Business Times.
Risks by sector were "omnipresent and underestimated," the report said, noting that nearly all sectors were exposed to a high or medium level risk from climate change.
Six sectors in the "danger zone" are oil and gas, aviation, health care, tourism, transportation and the financial sector, KPMG said.
They combined both high risk and low levels of preparedness, the report said.
Many banks find it difficult to analyze the implications of climate change in their investment portfolios, KPMG said. Studies of the impact on the transportation sector tend to neglect such risks as delays, cancellations and accidents.
The report warned that the health care sector is vulnerable as global warming and extreme weather are connected to outbreaks and spread of disease.