Businesses need to work more closely with climate scientists. Otherwise, as new research shows, climate information can be misunderstood and used inappropriately, exposing businesses to significant risk.
New regulations require businesses to assess and disclose their vulnerability to climate change effects like drought and rising sea levels.
When assessing financial risk, businesses reference climate models, which are publicly available but difficult to understand. The methodology of these models is often unclear or proprietary. Assessments are often done by non-experts who can draw wrong conclusions, giving businesses a false sense of security.
Climate scientists can help businesses better understand these complex models - how they are set up, how changes in greenhouse gases are represented, and the time period being considered.
Scientists can help businesses see the tangible and practical value of climate models from a financial perspective and potentially decrease business risk and vulnerability.
Original article:
Potential for misuse of climate data a threat to business and financial markets
Original study: