Companies that fail to plan ahead on how they will operate in a low - carbon economy risk bankruptcy , warns the Grantham Research Institute in a report , since there appears to be a major gap between valuations of carbon - intensive firms on the stock markets today and their valuation if the commitments made in the Paris Agreement on climate change are to be taken seriously . Lord Stern and Dimitri Zenghelis publish new paper urging Financial Stability Board to deliver ambitious new reporting guidance Companies that fail to plan for how they will operate in a low-carbon economy risk decline or even bankruptcy, according to a new submission from the Grantham Research Institute on Climate Change to the... This gap could have serious consequences for investors and it should alarm policymakers and central banks since it suggests " either asymmetric information or a lack of credibility in markets " . The report also warns : " The future of companies will depend on their forward strategies rather than their backward performance " .
Companies that fail to plan ahead on how they will operate in a low - carbon economy risk bankruptcy , warns the Grantham Research Institute in a report , since there appears to be a major gap between valuations of carbon - intensive firms on the stock markets today and their valuation if the commitments made in the Paris Agreement on climate change are to be taken seriously . This gap could have serious consequences for investors and it should alarm policymakers and central banks since it suggests " either asymmetric information or a lack of credibility in markets " . The report also warns : " The future of companies will depend on their forward strategies rather than their backward performance " .