Sept. 26, 2008 - Tackling climate change could boost company value in six sectors worth a total of $7 trillion, according to a new report by the Carbon Trust.

The report says reducing carbon emissions to prepare for competion in a low carbon economy will create significant business opportunities and risks, driven by shifts in consumer behavior, technology, innovation, and regulation.

According to the report, well-positioned and proactive businesses could increase company value by up to 80%. Conversely, poorly positioned and laggard companies in some sectors could risk up to 65% of their value.

"Climate change will cause a revolution in business and our findings should act as a trillion dollar wake up call to the investment and business communities," says Tom Delay, chief executive of the Carbon Trust. "Companies and investors that prepare now and develop new strategies will reap the commercial rewards of the move to a low carbon economy. The financial risks of inaction are just too vast to ignore."

The impact of tackling climate change will vary significantly by sector. The industries analyzed and the results of the potential risks and opportunities identified are outlined below:

The study also outlines recommendations for investors, businesses, and policy makers on efficient ways to tackle climate change which include:

• Strategic investors should discriminate between sectors and companies on the basis of their opportunities and risks.
• Businesses should incorporate climate change in their core strategy and investment decisions.
• Policy makers should work with business and investors now to create a policy framework which rewards early action and an efficient transition to a low carbon economy.

To download the rerport, click here (PDF).