Business on the Edge 2024

Total estimated fixed asset losses for listed companies under three emissions scenarios ($ billion per year, 2025-2055) Total estimated fixed asset losses for listed companies under low and high emissions scenarios, by climate hazard ($ billion per year, 2035-2055)FIGURE 3 FIGURE 4 2004006008001,0001,200 $ billion/yr 2025 2035 2045 2055 Low emissions scenario Medium emissions scenario High emissions scenario 0$560-610 billion$680-850 billion$830- 1,070 billion Extreme heat Water stress Fluvial flooding Drought Tropical cyclone Wildfire Coastal flooding Low $ billion/year HighLow High 448 87 65 672 208 114 62476 160 97 81 2035 2055404Total 830 Total 560Total 1,070 Total 61063 79Note: High emissions scenario = SSP5-8.5, Medium emissions scenario = SSP3-7.0, Low emissions scenario = SSP1-2.6. Sources: S&P Global Sustainable1, Accenture analysis. Sources: S&P Global Sustainable1, Accenture analysis.1.2 Extreme heat is the most potent climate hazard affecting fixed assets across all regions Corporate fixed assets are likely to be hit primarily by extreme heat. By 2035, this climate hazard alone is expected to drive annual losses of $404-448 billion across all listed companies (72-73% of total estimated losses), depending on the emissions scenario, rising to $476-672 billion by 2055 – although declining as a proportion of the total to 57-63% (see Figure 4). Water stress is forecast to be the next most potent climate hazard, driving fixed asset losses of $63-87 billion by 2035 and $160-208 billion per year by 2055. Fluvial flooding ($97-114 billion) and droughts ($62-81 billion) are also set to pose serious threats to the efficiency of fixed assets by 2055. Business on the Edge: Building Industry Resilience to Climate Hazards 11