Climate Change Might Cost Big Companies As Much As 1% Of Turnover! Shame!

Clearly we’ve got to do something about this climate change business. For a new report tells us that the horror, the terror, of using fossil fuels could cost large companies as much as 1% of their turnover. Which I think we’d all agree, would be a horror and a terror. For we all are aware that the only aim and purpose of our entire society is to enrich the plutocrats. Thus it’s back to the mud huts and shivering over the pease pudding bowl for we could not possibly live with the immoral action of reducing the return to shareholders, could we?

No, really, the proof is here in The Independent:

Many of the world’s biggest companies, from Silicon Valley tech firms to large European banks, are bracing for the prospect that climate change could substantially affect their bottom lines within the next five years, according to a new analysis of corporate disclosures. Under pressure from shareholders and regulators, companies are increasingly disclosing the specific financial effects they could face as the planet warms, such as extreme weather that could disrupt their supply chains or stricter climate regulations that could hurt the value of coal, oil and gas investments. Early estimates suggest that trillions of pounds may ultimately be at stake.

OK, fair enough:

In 2018, more than 7,000 companies submitted such reports to CDP and, for the first time, CDP explicitly asked firms to try to calculate how a warming planet might affect them financially. After analysing submissions from 215 of the world’s 500 biggest corporations, CDP found that these companies potentially faced roughly $1 trillion (£790 million) in costs related to climate change in the decades ahead unless they took proactive steps to prepare.

As you can see, a terrible problem that we really must solve. Abandon all civilisation now to save those profits, eh?

For $1 trillion among 215 companies is one number. We’ll assume that “decades” is 20 years. Anything less doesn’t really deserve the “s” there, anything more would be overegging the pudding on our side of the argument. That’s, close enough, $230 million per company per year.

Fortune has a list of the world’s 500 largest companies by turnover. The smallest, at number 500, is Ericsson, on a convenient $23 billion a year.

Climate change might cost companies 1% of their turnover. Shame, eh?

Note that we’ve constructed the numbers to be favourable to the argument being put forward. We’ve used the lowest turnover, not average. The lowest number of years consistent with decades. We’ve assumed that the $trillion refers only to the 215 reporting companies, not all 500. And yet still it’s all only 1% of turnover.

Or about the same impact of even today’s reduced inflation in any one year. Or a small multiple of the average CEO pay.

Actually, on the basis of this report climate change can go hang, can’t it? An entirely trivial preoccupation.

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Leo SavanttBarksintheCountryDodgy GeezerRhoda Klapp Recent comment authors
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Rhoda Klapp
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Rhoda Klapp

“roughly $1 trillion (£790 million)”

Surprised the resident pendant didn’t pick that up.

Dodgy Geezer
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Dodgy Geezer

I was asleep….

Dodgy Geezer
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Dodgy Geezer

….specific financial effects they could face as the planet warms, such as extreme weather that could disrupt their supply chains or stricter climate regulations that could hurt the value of coal, oil and gas investments…. Extreme weather disruption – not going to happen, but if it did, that would indeed be a cost attributable to climate change. Stricter climate regulations – are going to happen, even if climate change is (as I believe it to be) a complete scam. In both cases the sensible thing to do is to wait and respond to threats as they arise. But that is… Read more »

BarksintheCountry
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BarksintheCountry

So no carbon tax then?

Leo Savantt
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Leo Savantt

The biggest cost of the threatened ice age, global warming, climate change comes from the increases in taxation levelled against the use of that most innocence of elements, carbon. The biggest danger comes from all the hot air generated by the likes of Ms. Ocasio-Cortez, who in spreading fear of catastrophe by claiming that we are all going to die in just shy of 12 years is doing no good for the well being of children, neurotics and the hyper-suggestible. The greatest loss is the corruption of science and the abandonment of the search for truth. Anthropogenic CO2 is just… Read more »