- El Niño conditions are now in place, with commentators offering predictions on what this may mean for the economy.
- El Niño cycles are historically correlated with higher inflationary pressures as changing weather can impact crop yields, agriculture, and power – with this coming at a time when global inflation is already high.
- Exactly how this El Niño cycle will play out is a matter of probability rather than certainty. In particular, uncertainty on how it will interact with the underlying effects of climate change- a central concern for scientists.
- The way in which a company manages El Niño can serve as an indicator of how well it is considering and managing physical climate change risks. Climate change is already causing extreme weather in many regions of the world and set to worsen in the future.
Interested in learning more?
Climate risks are increasingly factoring into the global economy’s outlook: what does a company’s preparedness for a threat like the looming El Nino cycle say about its ability to handle climate change? Download the full ESG Viewpoint to learn more.