As a follow up to yesterday’s post on the social cost of carbon, this article discusses the impact of climate change on financial assets 77 years from now, in 2100.
Granted, most of us will not be here in 77 years. However, some of our children and grandchildren may be alive.
- Option A – Do nothing, resulting in a 50 – 60% reduction of existing financial assets.
- Option B – Take action now to keep temperature rise below 2°C, resulting in a loss of 15% of assets.
The cost to your business?
- Option A – Nothing. We let our kids worry about it.
- Option B – Assume approx. 7% of your annual GDP if the world went all-in (which will not happen).
- Option C – Assume some regulations and a cost of 2 – 3% of your annual GDP.
Is there a win here?
- Until governments mandate, you get to choose. You can lead, follow, or wait to be forced.
- Consumers (both B2C and B2B) are showing their support for certified sustainable companies by moving their business to them – 25% have already moved their business and another 25 – 35% is currently in play.
- Today, less than 1% of SMEs are certified sustainable. This allows those that are to stand out.
- And they are being rewarded – Certified sustainable companies are growing up to 20x faster than their non-certified peers and enjoying a 7x ROI on their sustainability projects.
- So, until the regulations come, is there a win here for your company?
At Edenark Group, we prefer a different title – “Profit now or pay later”