DAVOS: Businesses worldwide face potential losses of up to 7 percent of their annual earnings by 2035 due to increasing climate risks, according to reports released by World Economic Forum (WEF). The reports, unveiled on Wednesday, underscore the urgency of addressing climate-related challenges, warning that failure to act could result in disruptions comparable to the Covid-19 pandemic every two years.

According to Philippines News Agency, the reports identify telecommunications, utilities, and energy industries as particularly vulnerable to climate hazards. Extreme heat and other climate-induced disasters are expected to cause annual fixed asset losses ranging from USD560 to USD610 billion for publicly traded companies. The reports also highlight the impact of global regulations, noting that firms in energy-intensive sectors may see their earnings halved by 2030 due to carbon pricing initiatives.

The report suggests that investing in climate adaptation can be economically advantageous, with every dollar sp
ent potentially preventing up to USD19 in losses. The green markets are projected to grow significantly, from USD5 trillion this year to USD14 trillion by 2030, with advancements in alternative energy, sustainable transport, and eco-friendly products. Companies that act early in these sectors are likely to gain competitive advantages, driving innovation and profitability.

Gim Huay Neo, managing director of the World Economic Forum, emphasized that businesses have the opportunity to thrive while protecting ecosystems and supporting communities by systematically addressing climate-related risks. The reports call for immediate action, with leading scientists warning about the imminent risk of reaching tipping points in critical Earth systems, such as ice sheets and ocean currents.