The recently-released study also warns that developing countries are more at risk from facing negative consequences, should this scenario emerge. Analysts looked at how climate change could impact 137 countries in the world, focusing on climate-related hazards, such as flooding and high temperatures, as per ESG Today.
S&P Global Ratings stated that extreme weather events related to global warming are already doing their number on the planet's economy and company officials claim that between 1992 and 2022, the world lost a potential 5-7% GDP profit due to global warming.
Should global temperatures surge by 2.1 degrees Celsius by 2050, S&P suggests that we could lose around 4.4% of our GDP every year, with most of the negative impact coming from lower freshwater resources and extreme heat.
Also, lower-income countries could be up to 4.4 times more affected than developed economies and they are also significantly less prepared to face the wrath of nature.
Scientists suggest that climate-resilience investments in infrastructure and helping communities adapt to dangerous phenomena are two of the most important ways to prevent heavy damage, while noting that more flexible financing in this direction is needed.