Why Monetize Environmental Impact

Understanding the financial implications of environmental impact is crucial for creating sustainable business practices. When environmental costs are quantified, they become actionable data points for decision-makers.

The $2.27 Trillion GHG Challenge

These environmental impacts translate to significant financial costs across multiple sectors. Here's how the $2.27 trillion total environmental cost breaks down:

HEALTH

$1412Bannual cost

Climate change increases deaths from extreme heat, worsens air quality, and spreads disease. Warmer temperatures especially impact the elderly, children, and low-income communities. These health effects represent the largest share of carbon costs.

LABOR PRODUCTIVITY

$230Bannual cost

Higher temperatures reduce workers' ability to perform physical labor, especially outdoors. This leads to lower economic output in sectors like construction and agriculture. Labor losses are a key cost in hotter, lower-income regions.

AGRICULTURE

$554Bannual cost

Warming affects crop yields and global food supplies. While some areas may benefit short term, farming becomes less productive and more volatile on an aggregate basis. This leads to rising food prices and global economic ripple effects.

ENERGY

$34Bannual cost

As temperatures rise, people use more energy for cooling and less for heating. This shift creates regional differences in energy demand and cost. Some areas may see savings, but most face rising electricity use and strain on power systems.

COASTAL DAMAGES

$25Bannual cost

Rising sea levels cause flooding, destroy property, and force communities to relocate. These damages especially impact coastal cities and small island nations. Managing and adapting to sea level rise adds to the economic cost of carbon.

*Based on EcoMap's environmental cost analysis of Scope 1, 2, and 3 emissions for public companies
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Translating environmental impact into financial metrics for companies, industries, and countries to drive sustainable decision-making and investment.

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Developed in partnership with MSCI Sustainability Institute, The International Foundation for Valuing Impacts (IFVI) and Norwegian School of Economics.