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Research - DECEMBER 10, 2019

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Companies at risk for $2.3t losses as climate governance grows

by Kali Persall

Companies could lose up to $2.3 trillion in value by 2025 as climate change regulations tighten, Reuters reported, regarding a new report by Principles of Responsible Investing (PRI), a United Nations group representing international investors.

The companies facing devaluation range from fossil fuel producers to auto manufacturers. Those that are most closely related to the fossil fuel sector could lose one-third of their current value, according to the report. Of these, coal companies could lose up to 44 percent in value, while top oil and gas companies could lose up to 31 percent of their current market share.

On the other hand, companies such as car-makers that invest in more sustainable ventures, such as electric vehicles and low-carbon power initiatives, could more than double their values.

“As the realities of climate change catch up, social pressure mounts and low-carbon solutions get cheaper, it’s highly improbable that governments will be a

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