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...
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 " .