Climate
Climate Risk-Adjusted Financial Metrics: Seven Key Practices for Companies
Companies are increasingly expected to integrate climate risks into their financial analysis. However, traditional financial metrics often fail to reflect the financial impact of climate-related costs, regulations, and transition risks. This is where climate risk-adjusted financial metrics come in. These metrics help companies quantify the potential financial effects of their climate exposure, providing a clearer picture of risk exposure and long-term profitability. Through our research, we have identified seven key practices that companies are adopting to incorporate climate risk into financial decision-making.
February 21, 2025Read