Shares prices at 20 per cent of the world’s most valuable companies are likely to swing at least 10 per cent in either direction, according to the report. If the market delays repricing, the analysis forecast the climate policy effect could wipe out another $US700 billion.
Profits at coal companies and utilities that use thermal coal will be hardest hit, oil prices will peak around 2027 and natural gas costs around 2040, while manufacturers of wind and solar equipment will see large jumps in valuations.
In automobiles, the most prepared companies are seen as having a large upside, while carbon-intensive miners and beef-focused companies will be negatively impacted by carbon taxes, legal liabilities and consumer pressures.
Investments in natural solutions such as reforestation could generate about $US2.8 trillion in value, though those investments are barely available today. And investors may have climate blindspots around issues such as land use and biofuels, or where conglomerates could see climate impacts, according to the report.