Document summary
With UN climate talks at a standstill, the world will have to contend with a few degrees more which is enough to significantly increase vulnerabilities and adaptation needs. CA Cheuvreux assesses the vulnerability and adaptation needs of companies in climate-sensitive sectors, starting with utilities. Utilities’ top lines are significantly driven by temperatures, while major changes in the availability of hydro and wind resources, along with potential storm damage, frequently affect their profits. As guidance is based on normal climate conditions, monitoring tools are provided to better anticipate companies' operational and financial results and to avoid climate-related profit warnings.