2021 Q1 Nifty 500 companies mention heatwave impact 80 times, up from 7 last year, signaling rising business disruptions in India due to extreme heat.

India's extreme heatwaves have led to supply chain disruptions and lower earnings growth for businesses, with mentions in Nifty 500 companies' earnings calls reaching an all-time high of 80 times in Q1, compared to seven mentions last year. The heatwaves affect retail footfall, labor productivity, and loan collection, and are expected to increase 25-fold in India within the next 30 years. Investors are concerned that the market may not be adequately pricing in long-term climate risks, as the challenges are expected to worsen in the future.

August 09, 2024
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