Hello Community,
Found an interesting report from Bloomberg (June 16, 2025) The Climate Economy Outlook
Climate-related disasters have driven $18.5 trillion in global spending so far this
century, spurring a significant wealth transfer across companies and industries. In the
US, the costs are approaching $1 trillion a year, lifting revenue for companies focused
on repair (Waste Management, Fastenal and Quanta Services) and resilience (Dycom
Industries, Martin Marietta, Stantec and Jacobs Engineering). Low-emission leaders in
steel (Steel Dynamics), cement (Heidelberg Materials), oil and gas (EQT) and AI power
growth (Schneider Electric) may keep riding recent tailwinds, while US municipal
bonds, REITs and private-asset owners could be challenged.
• Climate Costs Are Rising: US climate-related costs reached a record $955 billion
over the 12 months through April and account for 36% ($7.7 trillion) of US GDP
growth this century, crowding out spending in other sectors.
• Repair, Prepare and Low-Impact Firms Well-Placed: Picking up after the last
storm and preparing for the next one could boost sales of companies such as Aon,
Home Depot and Assured Guaranty. Companies focused on CO2-efficient
production in the oil and gas, power, airlines and materials sectors have bested
higher-emitting peers.
• Climate Recovery Costs to Detract From Consumer Discretionary: The rising
costs of disaster recovery and home insurance premiums, which have doubled
since 2017, are crowding out consumer discretionary spending elsewhere in the
economy and putting pressure on local governments to prioritize disaster repair
over other infrastructure projects.
Featured in This Report: Bloomberg Intelligence analysis leverages an extensive suite
of data, including our proprietary Climate Damages Tracker (following monthly costs
in 50 countries), Global Emissions Intensity Tracker (500 firms across six industries), BI
Carbon forecasts, Bloomberg's ESG scores and Industry-level alpha analysis.
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Aya Pariy
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