Stock Exclusive-Centrica, Nestle, Swatch among companies exposed to physical climate...

Exclusive-Centrica, Nestle, Swatch among companies exposed to physical climate risks-investors

-

Stock Markets50 minutes ago (Sep 23, 2021 03:30AM ET)

(C) Reuters. FILE PHOTO: The Losentze river is pictured after a flash flood in Chamoson, Switzerland, August 12, 2019. REUTERS/Denis Balibouse

By Carolyn Cohn and Nina Chestney

LONDON (Reuters) – European energy firms Centrica (OTC:CPYYY) and Galp, food group Nestle and watchmaker Swatch are among 50 companies worldwide that are highly exposed to physical climate risks, investors with $10 trillion in assets said on Thursday.

The companies, which are involved in energy and mining, food, pharmaceuticals or technology manufacturing or transport and utilities, are more exposed to issues such as flooding than other companies in their sector and region, the Institutional Investors Group On Climate Change (IIGCC) said.

In a letter to the European, Asian and U.S. companies from more than 50 IIGCC members, the investors asked the firms to identify properly and respond to events such as flooding, droughts and extreme heat.

The IIGCC also published a set of expectations for all companies on building resilience to physical climate change risks, including scenario testing and reporting against a set of risk metrics.

Companies have come under pressure from activists and investors to cut their carbon emissions, with Shell (LON:RDSa) planning to appeal a landmark ruling on the issue.

But physical risks to a business can be overlooked, said Marion Maloney, Head of Responsible Investment & Governance at Britain’s Environment Agency Pension Fund.

“We think that are there two parts to the climate change debate – often the physical risks element is the poor cousin that doesn’t get enough attention,” she said.

“I want every company in my portfolio to be looking at these expectations.”

Other investors signing the letter included AustralianSuper, Impax Asset Management and Lombard Odier.

Centrica , which owns British Gas, one of the biggest energy suppliers in Britain, said it was “assessing both physical and transitional risks and opportunities we may face across a number of climate scenarios” and was “increasing our disclosures on the outputs from the analysis in line with best practice”.

Switzerland’s Nestle said it was “already undertaking scenario analysis to assess physical impacts on our value chain over a longer time horizon”, adding this would “provide direction for our mitigation and adaptation actions across our raw material sourcing and operational footprints”.

Portugal’s Galp Energia said it is committed to being a leader in the quality, accuracy and transparency of the information it provides to investors and other stakeholders.

“This year, we also concluded an evaluation of climate risks and opportunities, including physical and transition, that may impact Galp’s expected portfolio by 2025, 2030 and 2050,” Galp added.

Switzerland’s Swatch declined to comment.

The investor initiative comes ahead of the next round of global climate talks in Scotland in November, where governments are being urged to accelerate their efforts to reach net zero emissions by 2050.

It follows the release of a landmark United Nations climate report in August warning that global warming was dangerously close to running out of control.

The companies were identified based on research by the IIGCC and climate risk data firm Four Twenty Seven.

Exclusive-Centrica, Nestle, Swatch among companies exposed to physical climate risks-investors

Latest news

ASEAN excludes Myanmar junta leader from summit in rare move

World27 minutes ago (Oct 16, 2021 07:50AM ET) 2/2 (C) Reuters. FILE PHOTO: Flags are seen outside the Association of Southeast...

Biden to attend memorial service honoring U.S. law enforcement officers

World8 minutes ago (Oct 16, 2021 07:10AM ET) (C) Reuters. FILE PHOTO: U.S. President Joe Biden and first lady Dr....

Russia seeing record gas demand but still ready to boost EU supplies, Novak says

Commodities23 minutes ago (Oct 16, 2021 06:56AM ET) (C) Reuters. FILE PHOTO: Flames from a gas burner are reflected on...

Attackers Behind Trickbot Expanding Malware Distribution Channels

The operators behind the pernicious TrickBot malware have resurfaced with new tricks that aim to increase its foothold by...

Subscribe here

UK PM Johnson visits church where lawmaker was stabbed to death

World15 minutes ago (Oct 16, 2021 06:03AM ET) 5/5 (C) Reuters. Britain's Labour Party leader Keir Starmer, Prime Minister Boris Johnson...

NASA launches first space probe to study Jupiter’s Trojan asteroids

Stock Markets17 minutes ago (Oct 16, 2021 06:01AM ET) 5/5 (C) Reuters. The capsule with NASA's Lucy spacecraft, atop a United...

You might also likeRELATED
Recommended to you