On 12 May 2026, Carbon Disclosure Project, a global non-profit organization that operates the world’s leading environmental disclosure and scoring system, allowing companies, cities, and governments to publicly report their environmental impacts (“CDP“), published a new report highlighting that extreme weather risks are rapidly reshaping the global economy and could lead to nearly $1 trillion in financial losses (“Report“). The Report is downloadable at this link.

According to the Report, companies are already anticipating approximately $898 billion in losses due to extreme weather events, including flooding, cyclones, and heavy rainfall, with broader systemic exposure approaching $1 trillion across global assets and supply chains. The Report highlights that a significant portion of these risks is imminent, with nearly half expected to materialise within the next two years, making climate-related disruptions a current business and investment concern rather than a long-term scenario. Key financial impacts are expected to stem from reduced production capacity, asset impairment, and supply chain disruptions, affecting sectors such as infrastructure, manufacturing, and energy. At the same time, the Report emphasises that the cost of mitigation measures is significantly lower (almost 13 times lower) than expected losses, reinforcing the business case for investment in climate adaptation and resilience.