Every year that oil and gas, power, coal, and car companies fail to take rapid action to align their operations with global climate goals post-2026 could wipe $150bn off financial markets.
That is according to a new study from the Oxford Sustainable Finance Group and non-profit think tank 2° Investing Initiative, which analysed the cumulative impact that slow progress on climate action from publicly listed companies in emissions-intensive sectors would have on global financial markets.
The report – the first to be published by the partners’ joint Climate Stress-Testing and Scenarios Project (CSTS) – found the overall estimated cost to the financial sector could reach around $2.2tr in total if the companies surveyed took action within the next five years. But it also calculates that financial costs will soar by an additional $150bn for each year beyond 2026 where ambitious climate action is further delayed.
Moritz Baer, lead author and project manager…