Worldwide governments can’t seem to get their acts together when it comes to global warming.
We still do not have an agreement to curb greenhouse gases, but there might be a new economic force that could push governments to do something, and that push could come from publicly traded companies. Global warming is impacting the prices of certain stocks. Stock analysts have begun to factor in global warming on the performance of a companies stock. Take for instance restaurant stock prices. Restaurant stocks including McDonalds took a hit as stock analysts incorporated global warming’s heat and drought impacts upon restaurant food costs, profit margins and sales if higher menu prices trigger a consumer search for lower cost options. Chipotle took a 20% hit that day after the report came out. Beverage companies are also taking a hit due to current droughts around the world. Coca Cola and Starbucks are at economic risk in terms of water supply and cost. They could be forced to raise their prices and take a hit on revenue. Both companies are quickly adopting sustainability practices to address this issue. As prices rise in food and consumer products due to global warming, other discretionary purchases like vacations could impact firms like Disney and Carnival Cruises. As consumer’s prices rise, more people will struggle to make ends meet. Corporate profits will suffer and you can bet that corporate America will get into the act to push governments to do something about global warming. Just follow the money.
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