Research shows that climate change could affect the economy

The World Economic Forum in partnership with Accenture, a consultancy company, released this Wednesday (11) two new reports entitled “Business on the Edge: Building Industry Resilience to Climate Hazards” and “The Cost of Inaction: A CEO Guide to Navigating Climate Risk”which point out the economic damage that climate change can bring to the global economy. According to data collected, profits could fall by 7% per year until 2035.

World Economic Forum Report

Taking into account the data collected in the report, the World Economic Forum calculates that every dollar invested in measures to reverse the damage from climate change could result in 19 dollars of profit in the future.

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_{Impacts of climate change (Photo: reproduction/ Getty Images /getty images embed)}

The production of electrical energy is one of the human activities that produces the most carbon, and therefore, will be increasingly regulated and taxed. For this reason, companies that require high use of electricity are more likely to suffer economic losses, of up to 50%, according to recent reports.

Another sector at risk is telecommunications and public utilities, which may have its supply network affected and, mainly, may suffer losses due to the high impact that its target audience will have from climate change.

Ecological companies can have great revenue

According to the World Economic Forum, companies that are now concerned with sustainability and reversing the effects of climate change can enjoy growth of up to US$14 trillion by 2030.

“Businesses can build stronger, more sustainable operations, protect and restore ecosystems, and promote long-term economic and social resilience in an increasingly complex and uncertain world.”said Gim Huay Neo, managing director of the World Economic Forum.

Small companies also have a major impact on climate change, and are important in the sustainable agenda. According to research “The Engagement of Brazilian Small Businesses in ESG Practices”91% of Brazilian entrepreneurs consider it important to make their company sustainable.

In addition to the environmental impact, sustainable companies also contribute to a better quality of social and economic life in the community.

Featured photo: consequences of climate change (Reproduction/ David McNew /Getty images embed)