Bloomberg: "How Extreme Heat Is Shifting Corporate Bottom Lines"
by Coco Liu
As record-breaking summer temperatures regularly cause regional infrastructure to buckle, the macroeconomic toll is mounting. Yet that climate burden isn’t felt evenly. While intense heat disrupts operations for a variety of industries, it also creates business opportunities for others.
Wall Street is now having to devote more resources to pinpointing those winners and losers, though it remains a complex task.
“This is the trillion-dollar question,” says Gernot Wagner, a climate economist at Columbia Business School. Part of that challenge is that “science in many ways is following reality,” he notes. It still takes considerable time for investors to translate evolving climate models into hard equity analysis.
