Climate Change Reporting Policy: Are We Barking Up the Wrong Tree?

The debate on climate risk disclosure overlooks the unorganized sector, households, and governments, which are more vulnerable to climate change. Research by Columbia University highlights that while large public firms like Amazon are less affected by severe weather, small businesses and local governments face significant financial strain. The impact on municipalities, like falling sales taxes or increased borrowing, is often ignored. A broader approach to climate risk reporting should include these sectors to better capture the full economic impact.