Why Commercial Sustainability? 1. Climate risk Climate risk refers to formal Around US$500 billion of costs The group also reported analyses of the consequences, are rated between ‘likely’ to cumulative gains from realizing likelihoods, and responses of the ‘virtually certain,’ with higher business opportunities related to impact of climate change on operating costs linked to legal climate change at US$2.1 trillion, people, cities, and countries and and policy changes making up with the majority on track as how society adapts to it. A group a significant risk. In addition, almost certain with a significant of the world’s biggest companies companies report a potential shift in climate-friendly products representing nearly US$17 trillion US$250 billion in losses due to and services from the world’s in market capitalization, has stranded assets. largest companies valued the climate risks to their These include fossil fuel These opportunities also include businesses at almost US$1 trillion assets that may no longer increased revenue through - with many likely to hit within offer economic returns due to demand for low emissions the next five years. market shifts associated with products and services (such as Over 80% of these companies the transition to a low-carbon electric vehicles) due to shifting see significant climate economy or companies that consumer preferences and impacts, including extreme are significantly exposed to increased capital availability as weather patterns, rising global the physical impacts of climate financial institutions increasingly temperatures, and increased change. favor low-emissions producers. pricing of greenhouse gas emissions.