Australian shareholders should be told of climate risk to profits, says thinktank

Centre for Policy Development urges companies to adopt standardised analysis of climate's impact on business

Australian companies need to start developing sophisticated scenario-based analyses of climate risks, and incorporating them into their business outlooks so shareholders know how climate change will affect profitability, a thinktank has said.

However, the Centre for Policy Development (CPD) said companies needed to do so in a standardised way, so investors and regulators were able to easily understand economy-wide risks to whole industries.