Despite increased awareness among investors, physical climate risk from extreme weather remains surprisingly unaccounted for in financial markets. Without better knowledge of this risk, the average energy investor can only hope that the next extreme event will not trigger a sudden correction to the market values of energy firms.
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The author declares no competing interests.
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Griffin, P.A. Energy finance must account for extreme weather risk. Nat Energy 5, 98–100 (2020). https://doi.org/10.1038/s41560-020-0548-2