Up to £912bn in corporate value linked to companies in the world’s five largest stock markets is located in countries expected to experience the greatest socio-economic impacts from climate change, according to the latest report from Verisk Maplecroft.

Published this week, the risk intelligence company's Climate Hazard and Vulnerability Index shows that second-order climate risks, such as economic and political instability, poverty, migration and food insecurity, could become highly impactful in 48 countries by 2050.

Several of the world’s key emerging markets that are home to swathes of corporate assets are set to be among the hardest hit, including India, Nigeria, Kenya, Bangladesh and Pakistan.

“While many companies report on their physical exposure to climate hazards, lesser understood socioeconomic factors do not feature as part of corporate strategies, creating a blind spot for long-term resilience planning,” said Will Nichols, Verisk Maplecroft’s head of climate and resilience. “As the severity of climatic events accelerate, socio-economic factors could pose as big a risk as physical disruptions.”


See the next issue of CIR Magazine for more on this report.

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