How climate change cheats businesses, insurers

The number of companies that voluntarily disclose their estimates of climate-linked risks has risen markedly over the past 15 years. (Photo: Bloomberg)

(Bloomberg Opinion) — As the effects of climate change unfold, its impact on business will grow more severe: altered rain patterns will affect agriculture, floods will disrupt supply lines, heat waves will prevent employees from working.

If markets are to work well, investors need to know about these consequences, and the number of companies that voluntarily disclose their estimates of climate-linked risks has risen markedly over the past 15 years. They now account for around 69% of market capitalization, and such disclosure could soon be mandatory in many nations.