Business on the Edge 2024

1.3 Telecommunications, utilities and energy companies face steepest fixed asset losses in next decade Industries that provide the plumbing for the modern economy face the sharpest climate hazard risks, according to the analysis (see Figure 5). The average company in these sectors faces the following fixed-asset losses per year by 2035, ranged from low to high emissions scenarios: Telecommunications $518-563 million/year Telecommunications companies face the highest level of risk, due principally to the sensitivity of data centres and network infrastructure to extreme heat and restricted water access.Utilities $204-233 million/yearEnergy $115-135 million/year Fixed asset losses for the average listed company under low and high emissions scenarios, by industry ($ million per year, 2035)FIGURE 5 TelecommunicationsLow High Utilities Energy Software & platforms Travel Banking Retail Automotive Media Life sciences Natural resources Infrastructure & transportation services High-tech Agribusiness Industrial equipment & machinery Insurance Food & beverages Non-food consumer goods Chemicals Capital markets563 233 135 133 117 100 90 68 62 60 59 53 52 45 45 44 43 42 41 32518 204 115 124 110 91 84 62 59 56 52 50 49 42 43 40 39 38 3041 Low emissons scenario High emissons scenario (additional losses)$ million/year TelecommunicationsLow High Utilities Energy Software & platforms Travel Banking Retail Automotive Media Life sciences Natural resources Infrastructure & transportation services High-tech Agribusiness Industrial equipment & machinery Insurance Food & beverages Non-food consumer goods Chemicals Capital markets563 233 135 133 117 100 90 68 62 60 59 53 52 45 45 44 43 42 41 32518 204 115 124 110 91 84 62 59 56 52 50 49 42 43 40 39 38 3041 Low emissons scenario High emissons scenario (additional losses)$ million/year Sources: S&P Global Sustainable1, Accenture analysis. Business on the Edge: Building Industry Resilience to Climate Hazards 13