Physical Risks from Climate Change: A guide for companies and investors on disclosure and management of climate impacts

This report was published by Oxfam America, Calvert Investments, and Ceres, to provide publicly-traded companies with detailed guidance on physical climate risk disclosure and risk management steps, and to provide investors with guidance on the types of information they should expect of companies to manage portfolio risks related to physical climate impacts. 

Recognizing that investors often rely on filings with the U.S. Securities and Exchange Commission (SEC) to learn how publicly-traded companies are evaluating and managing material risks, this report opens with a review of the February 2010 guidance from the SEC on material information on physical climate risks that companies should be disclosing to investors under existing U.S. securities laws and SEC regulations.

The guide focuses on some of the key climate risks and business impacts faced by companies in the sectors of: Agriculture, Food, and Beverage; Apparel; Electric Power; Insurance; Mining; Oil and Gas; and Tourism. For each of these sectors, a description of physical climate risks and business impacts is provided, including some current real-world examples that illustrate the types of risks and impacts that companies may increasingly experience because of climate change. The guide also presents recent examples of physical risk disclosure for each sector - some of these examples are from mandatory filings, while others are from voluntary disclosure vehicles.

The report offers advice on the questions that companies should examine involving climate change risks associated with the local communities on which companies depend for employees, supplies, natural resources, operations, services, and infrastructure. A 'Physical Climate Risk Disclosure Checklist' is provided, as well as a few Risk Management Strategies are reviewed.  Appendix B includes a list of additional related resources for companies and investors. 

Publication Date: May 2012

Author or Affiliated User:

  • Dave Grossman

Related Organizations:

  • Ceres
  • Oxfam America
  • Calvert Investments

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Resource Types:

  • Planning guides

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