Corporate climate reporting is underestimating risks

Significance However, there is a danger of these impact assessments understating the costs of the global temperature rise already happening, and of action needed to restrain it. Impacts Firm-level tests of climate risks and transition costs need cross-checked against macro-level estimates from economy/environment models. Optimistic sustainability reports fuel confidence that ‘green growth’ is attainable, but may also mean governments set tougher targets. Models missed systemic factors that triggered the Global Financial Crisis, a useful lesson to avoid similar climate risk underestimation.